Gurugram, erstwhile known as Gurgaon, is part of the agglomeration of Delhi’s National Capital Region (NCR). Despite being 30 odd km from the national capital, the region was mainly agrarian until the 1970s when large tracts of land were allotted to the Maruti Suzuki automobile factory, which kick-started substantial economic growth in the city. The availability of land parcels and proximity to the international airport cemented Gurugram’s position as a preferred destination for national and global businesses to set up their operations in the Indian commercial landscape.
Currently one of the leading business hubs of India, Gurugram is home to several Fortune 500 companies, manufacturing industries supported by the development of physical and social infrastructure. The generation of white-collared employment has generated significant traction for a range of residential spaces such as apartments, villas and independent floors in the city. The city garnered the attention of many private developers and emerged as a prominent real estate destination for residential and commercial asset classes. These real estate growth dynamics in Millennium City are only poised to persist as the city sprawls in its peripheral areas.
Gurugram’s residential landscape is a mix of high-rise housing and plotted colonies. Hence, unlike other cities, the residential plotted development has picked up closer to business areas and in peripheral areas with large land parcels. Currently, localities around Dwarka Expressway and Sohna are witnessing maximum traction for residential land in Gurugram. Also, areas along the western peripheral expressway (Kundli–Manesar–Palwal Expressway) have seen offtake for plots in the past decade. The availability of large tracts of land and road connectivity to core areas of the city has boosted the demand in these peripheral areas.
While the peripheral areas have seen offtake for residential land, Gurugram has also seen an uptick in demand and supply in central locations such as sectors 33 and 38 and sectors along Dwarka Expressway and New Gurgaon. While micro markets in Dwarka Expressway and New Gurgaon have seen slow-paced development with litigation issues decelerating the region’s progress, the proposed completion of the expressway has boosted the consumer sentiments.
The traction for plots in Gurugram also comes on the back of the state government’s policy initiatives, such as Deen Dayal Jan Awas Yojna, which encourage high density plotted colony development and sale of independent floors in medium and low-density areas as an attractive option for end-users as well as investors.
The affinity towards low density development and availability of land in core city area as well as outskirts have led to spurt in demand and prices in the residential land sector in Gurugram. The residential land prices within the core city areas of Gurugram have recorded a double-digit growth of 15 percent (CAGR) between 2018-2020. The prices have especially continued to grow since the second half of last year as homebuyers are looking for larger homes and open areas post the beginning of pandemic. The residential land prices have also appreciated in the peripheral areas of Gurugram such as Sohna. The micro-markets in Sohna have recorded 6 percent increase in land prices.
Gurugram presents a unique case for residential land development due to policy-based initiatives under the Deen Dayal Jan Awas Yojna, which allows construction and sale of independent floors coupled with lower license fees. This allows the investors and end-users to multiply their returns on the residential land compared to apartments. Also, under the recent amendment in 2019, it is permissible to construct a fourth floor against three floors previously and sell it as an independent floor. This has renewed consumer interest in opting for low-rise development and independent floors. Unlike other metros, Gurugram has residential land available not only in the peripheral areas but also closer to commercial areas.
Currently, Gurugram is one of the most active plots markets in the NCR. The infrastructure development, such as the completion of Dwarka Expressway will be critical for further unlocking the potential of land around the expressway and in New Gurgaon. In addition, upcoming projects such as Delhi-Mumbai Expressway and Delhi– Gurugram–Rewari–Alwar regional Rapid Transit System will be driving factors for demand and price growth of residential plots in the peripheral areas. The impending infrastructure development and strong commercial ecosystem will continue to have a positive ripple effect on the residential realty sector.
Know about: Sector 48 Gurgaon
