Corridor of growth DWARKA EXPRESSWAY Corridor Description and Rating Areas Included: Sectors 37C, 37D, 99, 99A, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 110A, 111, 112, 113, 114 and 115

Fig 1: Map of the corridor 02 Corridor of growth (COG)

About the Corridor Introduction: The Dwarka Expressway or In terms of acquisition cost (Rs lakh), almost areas which fall under certain distance on the Northern Peripheral Road (NPR) Corridor one fourth supply in the corridor is in the Rs either side of the MRTS Corridor will be eligible covers new development areas along and off 60-80 lakh bracket. This is followed by the Rs for increased Floor Area Ratio (FAR). This will the Dwarka Expressway from Sector 37C in 80 lakh to Rs 1 crore segment. About 55% of be available even if applicable FAR as per the south to Sector 115 in the north. Except supply in re-sale market is in the Rs 60 lakh to original development norm for the area has for Sector 37C and 37D, all other sectors fall Rs 1.2 crore range. been exhausted. west of the Delhi-Rewari Railway Line which The price levels across most sectors has Dwarka Expressway has a Metro Corridor marks the eastern boundary of the corridor remained stagnant for some time and this planned along its alignment. The area on and separates it from old established areas. situation is likely to persist in the short to either side of the expressway will be eligible While the Expressway continues further medium term. for higher development. This will put more south from Sector 37D, only the portion till residential and commercial developments in Sector 37D has been considered as this area is The corridor presently lacks social and support the market. most dependent on operationalization of the infrastructure. A few schools have opened in Dwarka Expressway. the corridor but for all its major and minor The increased supply under the two new requirements, the projects in the corridor policies will add to more supply in the market This corridor is import as it accounts for for foreseeable future will have to rely on and this in turn, is likely to keep prices at a significant development activity. It is home infrastructure in the east of the Delhi-Rewari stable level. to more than 100 residential projects with Railway Line in old areas of Gurgaon. 50,000 plus residential units between them. Present Status: The Northern Peripheral The entire corridor, encompassing residential New Development Policies & Impact Road (NPR), more famously known as Dwarka projects and infrastructure (roads, water, on Dwarka Expressway: The Haryana Expressway, is a 150 meter wide and 18 sewerage, electricity), is in various stages Government has introduced two new policies km long road which will connect Dwarka in of development. The corridor has seen which will impact the real estate sector in Delhi with Kherki Dhaula on the National participation by end-users and investors alike terms of supply and price levels. These policies Highway-8 (NH-8) in Gurgaon. The project and hence, lot of public interest is riding on are: was commissioned in 2007 and while most the development of this corridor. of the project (14 km out of 18 km) has been a) New Integrated Licensing Policy 2015 completed, it has not become operational as Current Status: Projects in the corridor are (NILP-2015): Under NIPL-2015, the minimum some key patches of the alignment are stuck in various stages of construction with some area norms for developing a residential plotted in litigation. having received part Occupation Certificate colony has been reduced from 100 acre to 25 (OC). However, most of the projects are some acre. Earlier the residential development was The future of the corridor is linked to NPR time away from completion. HUDA is in the restricted to 20% of the net planned area of becoming operational as it presently lacks process of laying infrastructure in the corridor. a sector and balance land remained unused. acceptable level of connectivity. We present This includes water distribution network, Under NILP-2015, licenses will be granted for below the key points which summarize the sewerage pipes, electricity and construction area beyond 20% allowed in each sector for present scenario with respect to NPR and also of various sector roads and completion of the Group Housing. Land which was hitherto lying highlight the key challenges holding up the Dwarka Expressway. unused will become available for developing completion of the road. residential colonies. The real estate activity is at a low tide and a) Ministry for Road Transport, Highways new project launches have declined sharply This means an additional supply in the form of and Shipping has recently announced the as compared to the previous years. There is residential plots and Group Housing will enter granting of National Highway status to NPR. existing unsold inventory in the market along the market in due course of time. This will As and when this actually happens, the land with options available in the resale segment. help to keep the land value and price of end- acquisition, construction and management products at a low level. The overall price level of the road will be undertaken by National The corridor offers options of apartments, in the market will remain stable as more land Highway Authority of India (NHAI). This is high-end villas and residential plots. The becomes available through this policy. expected to speed up clearance of pending capital value is higher in sectors close to Delhi. issues. NHAI is in the process of undertaking Price in the re-sale market ranges from Rs b) Transit Orient Development (TOD) Policy: a Detailed Project Report (DPR) of the 4,000-9,000 per sq ft. The average price level The state government has come out with expressway. However, the timelines for actual in the same is Rs 5,043 per sq ft. Compared to the Transit Orient Development Policy which process of final notification and takeover by the residential markets of Gurgaon which are aims to encourage commercial & residential NHAI are not clear at present. to the east of NH-8, the average price level is development along the Mass Rapid Transit 30%-40% lower. System (MRTS) Corridor. Under the policy, b) HUDA is planning to make 13.5 km stretch 03 Corridor of growth (COG)

of Dwarka Expressway operational by August responsibility of the Delhi Development Given the present situation, completion of the 2016. This stretch is free of any litigation and Authority (DDA). However, DDA has not yet Dwarka Expressway will take at least another most of the work has been completed. It will acquired land for implementing this stretch 2-years. However, the silver lining is the connect to NH-8 at Kherki Dhaula through an of the road. No clear timelines are available announcement of NH status to the highway. underpass or a flyover. This will provide much on when this will be completed. Therefore, Once the Dwarka Expressway comes under required connectivity between sectors and even if HUDA completes its part of the Dwarka NHAI, it will help to address a number of other areas of Gurgaon through NH-8 as well Expressway, connectivity to Delhi might still bureaucratic hurdles. For example, the issue as the existing access roads. not be available. of inter-state coordination for completing the expressway on the Delhi side will get c) The Haryana Urban Development e) The Railway-Over-Bridge (ROB) on the addressed as a single body (NHAI) will be Authority (HUDA) had reached a settlement Delhi-Rewari Line is yet to be completed. As responsible for the whole expressway. with residents in New Palam Vihar and Kheri the ROB ends towards Sector 99, a factory Dhaula whose homes were to be acquired for exists in the alignment of NPR. This factory is Even the planned partial operationalization of implementation of the NPR. The litigation had yet to be removed for work to be completed. the expressway and connectivity to Gurgaon been holding up road construction activity in will add some impetus to the residential f) There are other flyovers planned at some Sector 110 towards Delhi and Kherki Dhaula segment in the corridor. Price levels are critical junctions along the expressway but near NH-8. As part of the settlement plan, expected to remain stable in the medium their development timelines are not clear. HUDA is to allot alternate plots to around 700 term as unsold inventory will take some time families in Sectors 37C and 110A. However, Outlook: Dwarka Expressway offers a to clear. this process has not yet been completed due relatively less expensive residential option Purchasing a residential option in the to difference of opinion between litigants and to consumers along with integrated market is advisable for those who are HUDA on various aspects of the land allotment development of commercial and retail looking for relatively less expensive options plan. Consequently, construction activity on segments. The corridor has potential to evolve with proximity to both Gurgaon and Delhi. the incomplete stretches has not yet started. into a stand-alone hub independent of main However, consumers need to keep a 2-3 year Gurgaon. However, delay in completion of the d) The final 1.3 km stretch of Dwarka window before the corridor takes shape of a Dwarka Expressway is the biggest bottleneck Expressway which connects it to Delhi actually habitable area with proper physical and social facing the corridor. falls in Delhi and development here is the infrastructure.

Overall Connectivity Social Infrastructure Security/Water

Properties available in the corridor he corridor offers a wide variety of supply is concentrated in the middle of the is priced at less than 40 lacs, and is mostly in price ranges, although most of the expressway. The supply costlier than 1 crore is sectors at the far end of the corridor, in sectors Tapartments in the region are in the mid mostly in sectors touching Delhi, and forms a like 99A etc. The corridor is relatively new segment. More than 50% of the supply is significant 36% of the supply. A small portion compared to the rest of Gurgaon market, and priced between Rs. 40 lacs and 1 crore. This of the supply, amounting to 10% of the total, almost 80% of the supply here is still under

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration 04 Corridor of growth (COG)

Table 1: Sizes and prices of flats available for construction. This is also partly because of the The corridor provides a moderate range of various room configurations construction delays faced by the projects here choices for each bedroom configuration with Sales Price Covered Area over the last 2-3 years. Overall, the market is prices varying along the length of the corridor, ( Lacs) (Sq.ft) tilting heavily towards 3 BHKs, which form falling as one moves west on it, and away 1 12-40 500-650 more than 50% of the total supply, followed from Dwarka Sector 21. While the range of 2 20-100 900-1550 by 2 BHKs, forming another 30%. 4 BHKs and apartment sizes is rather large, the majority of 3 10-150 1400-2500 above forms another one eight of the corridor’s configurations of 1, 2, 3 and 4 BHKs are around supply, leaving just 5% for 1 BHKs. 610, 1,150, 1870, and 2,800 Sqft respectively. 4 BHK and above 90-300 2200-3500 Best sectors to invest in a home Based on rental demand in sectors

Fig 5: Top 10 sectors by consumer for renting a house he top sectors by demand are dispersed sector is closest to NH8 among all the sectors Vihar. Sector 103, and 108 are located in the across the corridor, with sector 37C, on the corridor and around 3 kms from Hero middle of the corridor, and figure on the list Twhich commands a whopping half of Honda Chowk. Sectors 112, 110A, 110, and bases the supply of residential apartments in the demand for the corridor, being located on 109 all lie very close to Dwarka Sector 21, and these sectors. The yields vary widely, ranging the farther end of the corridor from Delhi. The benefit from proximity to Delhi, and Udyog between low of 2.2% and high of 3.8%. Based on home buying demand in sectors

Fig 6: Top 10 sectors by consumer for buying a house 05 Corridor of growth (COG)

he home buying tendency follows closely owners and hence more people will be looking by consumer searches for renting in a house. with the renting seeking tendency on the to buy in these localities. Consequently, six out The property prices available in the corridor Tcorridor as all the localities which have of the top ten localities by consumer searches are reasonable and provides potential return high rental demand will give better returns to for buying a house are in the top ten localities on investment.

Best bedroom configurations to buy Preferred buying and renting options

Table 2: Demand distribution for buying and renting s most of the recent demand is driven for renting-in is 57% in the corridor. Buying Renting by end use rather than investment, the Noteworthy is the fact that the demand for Total (BHKs) Total (BHKs) Abuyers are looking for bigger apartment 4BHks and above is more than the demand 1 BHK 5% 3% types in the market suitable for living. As a for 1BHKs, a phenomenon rarely witnessed 2 BHK 30% 32% result, the dominant BHK type for both buying in the other geographies of the country, and and for renting-in is the 3 BHKs, followed by reinforces the preference of bigger apartment 3 BHK 53% 57% 2 BHks. Here, 53% demand distribution is for sizes by buyers in this market here. 4 and Above 13% 7% buying 3BHK units and demand distribution Price changes and future prospects Historic Price movement Corridor Average Price Rs/sqft Table 3: Historical Price changes

6 monthly change Yearly change -5% -7% he average price of the Dwarka Expressway corridor has been falling for Tthe last one year, mirroring the weakness in the overall Gurgaon market. The corridor has been witnessing fewer launches, and the sale transaction activity has been slow. Although the sales numbers were expected to pick up post resolution of the dispute for the land under Dwarka Expressway, the same did not happen, and the prices have fallen by 5% over the last six months and by 7% over the last one year. However, we expect that the prices have hit the bottom, and will not fall drastically goring forward.

Fig 7: Historical Price changes of corridor 06 Corridor of growth (COG)

Price movement for top sectors by Consumer Preference he various localities in the corridor has given mixed price variations over the last quarter, with Tthree of the two corridors witnessing a fall in the prices. The price changes have varied greatly, and there is no clear trend geographically. Hence, the price variations in the corridor are a result of seasonal trends, while having a downward pressure due to the weakness in the overall property market in the city of Gurgaon.

Fig 8: Price changes in top sectors by consumer demand

Master Plan

Fig 9: Land use of various sectors in the corridor RESIDENTIAL COMMERCIAL PUBLIC AND SEMI-PUBLIC INDUSTRIAL OPEN SPACES

he land use in corridor is mostly nature. However, for the foreseeable future, land adjacent to highways and broad roads, residential in nature, providing ample the commercial space will be restricted to and the social infrastructure is expected Tland for present and future development Cyber city area, Udyog Vihar, and Sector to improve in the foreseeable future, even of residential projects. The sectors 106, 109, 21, which has Unitech SEZ. Besides the though the corridor does not have many 112, and 113 have strips of land adjacent to core land uses, every sector has options for facilities currently. Dwarka Expressway, which are commercial in commercial and institutional development on 07 Corridor of growth (COG)

Infrastructure Updates Dwarka Expressway: It has been long in resume soon. The finished corridor will connect as part of Gurgaon Masterplan, the metro will planning and progress has been stagnant for to Dwarka sector 21 on one end, which also be running in between Dwarka Expressway, some time due to land litigation issues, with operational metro, and NH8 on the other end, connecting to Sector 21 station in Dwarka on home owners losing land to the expressway providing full mobility to the population living one end, and towards the metro line which contesting the compensation in Chandigarh on the corridor. will be coming from Huda City Centre side. High court. However, the issue has been However, there is no definite timeline to the Delhi Metro: In the next phases of the Delhi settled last year, and the construction for the projects. Metro, where metro will be further extended remaining stretch of the corridor is expected to to the satellite towns like Gurgaon, and Noida, IN NEWS Dwarka Expressway: Realty hotspot in NCR Top 5 reasons to invest in Dwarka Expressway Spurred by affordable property prices, proximity to Delhi, Gurgaon, Dwaraka Expressway is one of the most sought after markets. and the Indira Gandhi International Airport as well as infrastructural The locality has been growing slowly and witnessing potential advantages, the Dwarka Expressway area has not only emerged as infrastructural development. It is an ideal spot for investment a hotspot in the Delhi NCR region but has also become a favourite purpose. Investors who are looking for better returns can invest in destination for property buyers in recent years. The stretch has been this locality to reap huge return on investmnet in the long term. Its planned as an alternate link road between Delhi and Gurgaon, close proximity to Delhi and IGI Airport will always ensure a better and is expected to ease the traffic situation on the Delhi-Gurgaon lifestyle and price. In fact, the connectivity is quite good in the locality Expressway. Plans are also to bring a Metro line to this area, which through all modes of communication. It will be parallel to the NH8 will further improve its connectivity with other areas. till it merges ahead of the IFFCO Chowk. The locality is considered a potential growth corridor. n Source: The Times of India n Source: Magicbricks Bureau Dwarka Expressway is top investment destination Huda to speed up Dwarka e-way work Dwarka-Gurgaon Expressway, also known NPR (Northern Peripheral Road), is a Huda (Haryana Urban Development Authority) project The Dwarka Expressway work, which is planned to ease connectivity, designed to ease traffic rush on the operational Delhi-Gurgaon will soon speed up the construction work. The government has asked Expressway (Delhi-Jaipur Highway). Dwarka Expressway is the state the urban development agency to speed up the process of allotment government’s widest-ever-150 metre-expressway project that of alternative plots to the families affected by the project. Moreover, connects NH-8 at Kherki Daula to Dwarka. Of the 630 acres needed to there is a proposed infrastructure to build a railway over-bridge construct the expressway, 600 acres have already been acquired and near Basai. Indian Railways will streamline the work and ensure the rest is expected to be acquired soon. More than 33,000 houses, completion of over-bridge on time. The expressway was planned with an approximate sale value of 8,000 crores, are under construction to decongest traffic in Gurgaon by allowing vehicles from Jaipur to in different sectors along Dwarka Expressway. As Dwarka Expressway skip the expressway and head towards Dwarka and IGI Airport. Huda is close to Gurgaon, there is a huge demand for quality residential had subsequently offered the rehabilitation plan, paving the way for space and infrastructure. construction of a 2.5km stretch of the road. n Source: The Times of India n Source: The Times of India MOST POPULAR PROJECT in Dwarka Expressway http://magicbricks.com/investment-hotspots/gurgaon/dwarka-expressway/

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