Real Insights: Locality Snapshot New Gurgaon June-2014
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Executive Summary:
Gurgaon, commonly referred as the millennium city, has grown exponentially over the last decade. This stupendous growth has propelled the city administrators to expand the city even further. New development has been planned and additional Sectors 76-95 have been added for the first time in Master Plan-2021 that got approved in 2007. These new sectors are commonly referred as the New Gurgaon region. The expansion in this region comprises residential, commercial, institutional and public utilities. According to Master Plan-2025, a 200 m industrial belt was proposed along the Southern Peripheral Road (SPR) and an area of 4613 ha has been reserved for industrial purpose along NH-8 adjacent to IMT Manesar. Around 4500 ha of area is delineated for SEZs in Master Plan-2021 and Master Plan-2025, but this area has been changed to residential, commercial and industrial.
Dwarka Expressway, also known as Northern Peripheral Road, was first proposed in Master Plan-2021 and runs between Dwarka to Gurgaon at Palam Vihar. Moreover, the Master Plan-2031 proposed to extend the expressway further till Kherki Dhaula intersecting at NH-8. This extension increased the demand for residential real estate in New Gurgaon (which has easy access to the Expressway) to a high extent considering that many new projects were launched in the year 2013. Another expressway project which has an impact on New Gurgaon real estate is the Kundli-Manesar-Palwal expressway. With Kundli- Manesar-Palwal expressway and proposed new industrial areas around IMT Manesar and NH-8, the residential demand has had a positive impact.
Currently, the public transport facility in New Gurgaon is in a very poor condition considering the low quality bus service and absence of metro has posed a challenge for the people living there. However, the new proposed infrastructure development including the metro and the expressways’ connectivity is giving a new impetus to the residential real estate demand.
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Index Page No.
1. Introduction to New Gurgaon 5 2. Implications of Master plans 6 3. Implications of proposed Infrastructure projects 12 4. Major Challenges 16 5. Environmental constraints 17 6. New Gurgaon Real Estate Overview 18
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List of Figures
Fig 1: Gurgaon Location Map Fig 2: New Gurgaon Location Map Fig 3: Gurgaon Master Plan 2021 Fig 4: Gurgaon Master Plan 2025 Fig 5: Gurgaon Master Plan 2025 Fig 6. Change in Residential area by Master Plans Fig 7. Change in Commercial area by Master Plans Fig 8: Change in landuse from Master plan 2025 to 2031 Fig 9: Major Road network and Proposed Infrastructure in Gurgaon Fig 10: Year wise Supply and Absorption in New Gurgaon Fig 11: Quarter wise Supply and Absorption Fig 12: Sector wise Supply and Absorption Fig 13: Heat map showing Supply Trend Fig 14: Supply by Launch date and completion date Fig 15: New Gurgaon Weighted avg. price trend Fig 16: BHK configurations wise Price per sq. ft. Fig 17: Heat map showing weighted avg. price trend Fig 18: Residential Market segment share List of Tables Table 1. Details of Gurgaon Master Plans Table 2. Landuse Classification of Different Master Plans Table 3. List of Infrastructure Projects in Gurgaon Table 4. Upcoming projects and Expected completion dates Table 5. List of Developers developing roads in different sectors Table 6: New Gurgaon Circle rates 2013-14 Table 7: New Launches in New Gurgaon New Gurgaon Report by CommonFloor.com
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1. Introduction to New Gurgaon
In order to sustain the growing population and the developing needs of Gurgaon, a new region was brought under the development cluster - New Gurgaon. This region consists of sectors 76-95 and lies essentially between Old Gurgaon and Manesar.
Various factors have led to the growth of this area. Master Plan-2031 has opened up several sectors for group housing projects while few sectors have been allotted for commercial and open spaces. Source: Real Estate Insights by CommonFloor.com
Additionally, New Gurgaon has better Fig 1: Gurgaon Location Map access and connectivity with other parts of Delhi-NCR through NH-8, Kundli-Manesar-Palwar Expressway and Gurgaon-Dwarka Expressway, Southern Peripheral Road and Pataudi Road.
The terms New Gurgaon and Dwarka Expressway sectors have essentially been coined by the real estate fraternity. In this report, CommonFloor has clearly identified sectors 76-95 as New Gurgaon region while sectors 102-115 will come under the Dwarka Expressway region.
Fig 2: New Gurgaon Location Map Source: Real Estate Insights by CommonFloor.com
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2. Implications of Master plans
2.1 Master Plan-2021: Master Plan-2021 came into being in the year 2007. According to this, 50 per cent of commercial areas could now be developed by the private sector while remaining 50 percent by the development authority. Unlike Delhi, private developers could now participate in the commercial development. Expansion of Gurgaon was also planned and new sectors 58-115 were added which, in turn, gave a significant boost to the real estate growth in the area.
Furthermore, the Master Plan also proposed new industrial areas along the expressway adjacent to IMT Manesar wherein the demand for industrial land had increased substantially. This would benefit both the upcoming and existing industrial belts. The proposal was not only welcomed by various industries but also increased the demand for residential real estate.
Fig 3: Gurgaon Master Plan 2021 This new industrial development had little impact on New Gurgaon region while Dwarka Expressway had a major impact on the sectors 100-115. According to this Master Plan, the width of major roads was also to be widened from 30m to 60m and 75m. The proposed northern and southern peripheral roads were also included here which, in turn, had a major impact on overall Gurgaon realty. The proposed Dwarka expressway, MRTS corridor along NPR and new industrial areas were expected to increase the pace of development in New Gurgaon. To meet the demands of physical infrastructure like water, sewage and
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solid waste, HUDA also proposed water and sewage treatment plants in sectors 100, 101 and 107,
Key Points: New industrial areas proposed along KMP expressway and NH-8 Delhi-Gurgaon connectivity - 3 new link roads proposed: o 90 m wide road from Vasant Kunj to MG Road o 90 m wide road from Andheri Mor to Gurgaon-Faridabad road o 150 m wide expressway from Dwarka to Palam Vihar MRTS corridor along the NPR. Another MRTS proposed along Mehrauli road extending up to the proposed 90-m link road with Delhi via Gwalpahari Land allotted for SEZ and Special zone, whuch shall include recreation and entertainment, commercial, group housing and institutional uses located along the proposed Dwarka Expressway. 2.2 Master Plan-2025:
Master Plan-2025 was approved in the year 2011. There were no major changes as far as residential, commercial and industrial areas was concerned. However, it was proposed that all the roads in the residential areas should have a minimum width of 12m so as to cater to street parking. Land for additional parking was proposed in new sectors which would be used for open parking. With many
Fig 4: Gurgaon Master Plan 2025 New Gurgaon Report by CommonFloor.com
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industries clustering near IMT Manesar, a 200 m industrial belt was proposed along SPR. In addition to this, 4613 ha of land was proposed for industrial use along NH-8 near IMT Manesar.
Master Plan-2021 had proposed physical and social infrastructure facilities but did not specify the recreational spaces. However, according to Master Plan-2025, a minimum of 2.5 sq. m/person area was added. Dwarka Expressway, which was first proposed up to Palam Vihar, was now extended up to NH-8. This extension played a major role in boosting real estate demand in sectors 76-100. Golden Triangle City Centre was proposed in sector 29 comprising four tallest buildings in the world. This sector, located near IFFCO chowk along NH-8, has good connectivity with Delhi. Group housing, commercial, recreation and institutional areas were also permitted in the SEZs. In addition to the existing SEZ, Unitech SEZ, DLF,
Key Points: 150m wide Northern Peripheral Road extended till NH8 Institutional belt proposed along Southern Peripheral Road. 4613 ha of land reserved for industrial use along NH-8, adjacent to IMT Manesar In addition to existing SEZ’s, DLF SEZ, Unitech SEZ, Orient Craft SEZ and Metro Valley SEZ were notified in different zones.
SEZ, Orient SEZ, Metro Valley SEZ etc. were notified by the government in different zones.
2.3 Master Plan-2031:
Fig 5: Gurgaon Master Plan 2031 New Gurgaon Report by CommonFloor.com
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Master Plan-2031 was shown the green light in 2012. One of the major changes incorporated was the overall master plan area was decreased from 37,000 ha to about 33,700 ha from the previous plan. It was proposed that the residential sectors would be developed in a neighborhood concept with the population density of 250 persons per hectare (PPH). Moreover, it was seen that Gurgaon had little
Key Points: 50 ha land allotted for housing to low and medium income group in sector 68. Part of the SEZ land converted to group housing category. New sectors - 95A, 95B, 89A, 89B, 88A, 88B and 99A - are formed after a change in land use. options for the middle and low income housing as most sectors, mostly developed by private developers, consisted of unaffordable properties for these segments. Therefore, HUDA proposed 50 ha of housing for low and middle income group in Sector 68 with population density of 1125 PPH. Seven new sectors (95A, 95B, 89B, 88B and 99A), earlier part of the SEZ land, were also proposed which essentially comprised of residential, a small commercial stretch and sector 89B allotted for transport and communication zone. 2.4 Comparison of Master Plans
Table 1. Details of Gurgaon Master Plans S No Master Plan Notified Population Area Change Additional Sectors 1 Master Plan 2021 2007 22 lakh to 37 lakh 8000 ha to 37,000 ha 58-115 2 Master Plan 2025 2011 22 lakh to 40 lakh - - 37,000 ha to 33,700 95A, 95B, 89B, 88B 3 Master Plan 2031 2012 22 lakh to 42.5 lakh ha and 99A The projected population from Master Plan-2025 to 2031 increased by 2.5 Lakhs. The additional population was planned to be accommodated in the changed land-use sectors from SEZ category to Group housing.
Table 2. Landuse Classification of Different Master Plans (Area in Ha) S No Land Use 2021 2025 2031 1 Residential 14,390 15,148 16,010 2 Commercial 1,404 1,429 1,616 3 Industrial 5,441 5,431 4,613 4 Transport and Communication 4,231 4,289 4,420 5 Public Utilities 564 609 626 6 Public and Semi-public use 1,630 1,775 2,035 7 Open Spaces 2,675 2,688 2,775 8 Special Zone 106 106 114 9 Defense Land 633 633 633 Total Area 31,614 32,108 32,842 10 Special Economic Zone 4,570 4,570 - 11 Existing Town 406 406 406 12 Village Abadies 428 428 478 Grand Total 37,069 37,512 33,726
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Residential use increased by 11 per cent from Master Plan-2021 to 2031, the major conversion of land was from the SEZ category. New Gurgaon witnessed major impact with this increase and new sectors were formed including 88A, 88B, 89A, 89B, 95A and 95B. These new residential Area in Ha. areas were expected to accommodate the projected Fig 6. Change in Residential population of 20 Lakh. area by Master Plans Commercial use also increased by 13 per cent from Master Plan-2025 to 2031. In order to meet out the requirement of wholesale trading of building materials,
Area in Ha. grains, fruits and vegetables, approximately 48.50 ha land had been reserved along Fig 7. Change in Commercial area by Delhi-Rewari Railway line in sector 99A, Master Plans which would exclusively be developed by the Government or its agencies. With the formation of new sectors, the land reserved for SEZ got neglected. This could be due to the Global corridor coming up 10kms away from New Gurgaon on KMP Expressway. Global Corridor is a development of economic hub at strategic locations along the KMP expressway with provision for establishment of various theme cities. It is spread over 620 hectares of land.
2.5 Changes in Landuse:
Fig 8: Change in landuse from Master Plan-2025 to 2031 Source: Real Estate Insights by CommonFloor.com New Gurgaon Report by CommonFloor.com
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Gurgaon Master Plan-2031 incorporated various changes as against Master Plan-2025. SEZ designated land was converted into seven new residential sectors and size of the existing sector 37D was also increased. This change of SEZ land to residential and commercial zone would now lead to more residential space which in turn would create high density residential cluster in Gurgaon. Not only the SEZ land around sector 37D but also land on the northern side of Pataudi Road was converted into residential use in the new master plan.
Sector 89B was marked for public utilities like water supply, solid waste and sewage treatment plant. Almost 50 ha land was delineated for wholesale markets and godowns for material, grain and vegetable market in sector 99A along Dwarka Expressway. These changes were meant to increase the overall residential space and number of housing units in whole of NCR for the increasing demand of housing. The new plan also emphasised on the infrastructure development required for the growing population.
Total area of about 4570 ha. has been converted from SEZ landuse to residential, commercial, Transport and communication landuses, which cost 11% increase in residential land of overall Gurgaon.
Master Plan-2025 Master Plan-2031 References: 1. Gurgaon Master Plan-2021 2. Gurgaon Master Plan-2025 3. Gurgaon Master Plan-2031
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3. Implications of proposed infrastructure
Source: Real Estate Insights by CommonFloor.com
Fig 9: Major Road network and Proposed Infrastructure in Gurgaon
3.1 Northern Peripheral road (Dwarka Expressway): An 18-Km long Dwarka Expressway is currently being developed in Public-Private partnership (PPP) model. It connects Dwarka through NH-8 at Kherki Dhaula in Gurgaon. It passes through New Gurgaon - sectors 76-95. Hence, all these sectors have good connectivity with Delhi which also reduce traffic-flow on NH-8. Major developers and builders have grabbed the opportunity and started residential and commercial projects in these sectors. IMT Manesar, situated on NH-8, is also in close proximity to Dwarka Expressway. This industrial belt too has created huge demand for residential and commercial real estate. Furthermore, Dwarka Expressway has had a major impact on New Gurgaon real estate market as against sectors along Sohna road and Golf Course Extension road. There is still ample availability of land in this region as against Southern part of Gurgaon because of which there are multiple options for affordable properties comparatively. Prior to this Expressway, Golf Course extension road and Sohna Road were the preferred realty destination for most developers because of its
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connectivity with Faridabad and Delhi. But now, Dwarka Expressway has lured most developers with its advantage of better connectivity and affordability. As mentioned earlier, for easy understanding, CommonFloor has identified sectors 102-115 under the Dwarka Expressway region.
3.2 Southern Peripheral road:
The 12-Km long proposed Southern Peripheral road (SPR) will connect New Gurgaon with Delhi via Golf Course Extension. It connects New Gurgaon at Kherki Dhaula. Besides increasing connectivity to Delhi, the road would also reduce traffic on NH-8. It will also provide good connectivity to Faridabad through Gurgaon-Faridabad expressway. All heavy vehicles that disturbed internal city traffic in Delhi and Gurgaon will prefer using SPR for reaching Kherki Dhaula rather than using NH-8 which runs across the city. Further, this will also reduce traffic along Sohna road. 3.3 Upcoming Metro:
The first phase of the 5.1 km-stretch rapid metro in Gurgaon that connects Sikanderpur metro station to Cyber city has made easy access for commuters. It has improved overall connectivity and has boosted commercial real estate in Cyber city. On the other hand, the metro in some way had a negative impact on the residential real estate in Gurgaon. The increased connectivity with Delhi saw a decline in residential real estate demand in Gurgaon since people preferred to live in the national capital and commute daily.
The second and third phase of Gurgaon Rapid Metro is, however, expected to increase residential demand. Phase 2 of the rapid rail metro will pass through DLF City Phase 1, 4, 5, independent homes, builder plots and also gated communities in sectors 27, 28, 51, 52, 53, 54, 55, 56 and 57, covering Golf Course and Central park. While Phase 1 provided an essential link for commuters from Delhi, Phase 2 and 3 will be connecting the inner areas of Gurgaon which will have a direct impact on the realty market.
Other than Rapid metro, the proposed Delhi metro is expected to extend the airport metro express from Dwarka sector 21 to IFFCO Chowk. The latter is connected with yellow line metro while Dwarka sector 21 by blue line metro. This link will play a major role in reducing traffic demand on expressways and highways connecting Delhi and Gurgaon. 3.4 Kundli-Manesar-Palwal expressway:
The 136 Km-long KMP expressway, currently in the final stage of completion, will connect Gurgaon- Sohna road at Manesar. Existing IMT Manesar and several proposed industrial projects along Gurgaon- Sohna road will benefit with the KMP expressway. It connects four national highways NH-1, NH-2, NH- 8 and NH-10, thereby boosting connectivity of New Gurgaon sectors and Manesar. The industrial belt and improved connectivity will further boost residential demand in the area surrounding the expressway. Sectors 76-95 which are near IMT Manesar or along Sohna road will be utilized for this real estate development in terms of commercial and residential.
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3.5 Other Infrastructure Projects
Table 3. List of Infrastructure Projects in Gurgaon as on 31.12.2013 Total Budget S Name of the Location Categor Expected Cost (in in 2013- Remarks No Project (Sectors) y completion date Lakhs) 2014 Northern 1 75-115 Roads 13178 500 31.10.2014 - Peripheral Road Work on stay due to litigations. Will be completed 2 Master Roads 81-95 Roads 27974 500 - within 4 months after litigations are solved Major work Chandu completed, 3 22 MGD WTP Water 14092 500 31.12.2013 Budhera finishing in process 4 Master Roads 95-115 Roads 20255 3200 28.2.2014 - Internal Physical 5 57 4960 100 31.12.2013 - Development Infra. 6 120 MLD STP Behrampur Sewage 10078 2000 30.6.2014 - 7 100 MLD STP Dhanwapur Sewage 9440 2000 30.6.2014 - Distribution mains 8 58-80 Sewage 7420 - (recycle water) 2500 31.5.2014 Distribution mains 9 80-115 Sewage 16160 - (recycle water) Master sewage 10 77-115 Sewage 38148 2000 31.7.2014 - scheme 11 Water supply line 58-115 Water 49805 4000 31.3.2014 - College of Social 12 51 4003 500 14.1.2015 - commerce Infra Work on stay Souther Peripheral Sohna Road – due to court 13 Roads 2295 200 31.12.2013 Master Roads NH 8 litigation on land issue. Strengthening 14 43/53 Roads 843 120 31.12.2013 - Master road Strengthening MG 15 MG road Roads 2440 1000 26.1.2014 - road 60 mtr Master 16 55/56 – NH 8 Roads 3400 881.8 22.5.2014 - road 60 mtr Master IMT – 17 Roads 2495 800 completed - road Pataudi rd Water supply 18 Sec 1 pataudi Water 606.43 201.14 31.12.2014 - scheme Master SWD 19 58-67 Sewage 2500 1454.87 31.01.2014 - scheme 20 Master Roads 50/51, 50/57 Roads 361.14 200 completed - Source: HUDA, Status of major projects undertaken by HUDA as on 31.12.2013
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Table 4. Upcoming projects and Expected completion dates S. No Upcoming infrastructure Expected completion date 1 KMP Expressway (Kundli-Manesar-Palwal) 2014 2 Dwarka Expressway (Northern Peripheral Road) 2016-17 3 Southern Peripheral Road 2015-16 4 Rapid Metro Phase 2 and 3 2015 5 Airport metro extension link 2016 Source: HUDA, Status of major projects undertaken as on 31.12.2013
Table 5. List of Builders developing roads in different sectors S No Sector Roads Developer 1 81A/82A, 81/82 Bestech India Pvt. Ltd 2 90/91, 91/92, 85/89 & 86/90 DLF Ltd. 3 92/95 Ram Prastha 4 89/93, 89/94 Orries Infrastructure 5 91/92 & 93 and 85/86 DLF Ltd. 6 82/83, 82/85, 84/85, 83/84 and 82/82A Vatika Ltd. Source: HUDA, Status of major projects undertaken as on 31.12.2013
Dwarka Expressway (Northern Peripheral road) and Southern Peripheral Road are being developed in PPP (Private-Public Partnership) model and are first proposed in Master Plan-2021. These two roads coupled with IMT Manesar, NH-8 and Regional Plan of NCR -2021 had a huge impact on real estate sector in New Gurgaon. 136 Km long Kundli-Manesar-Palwal expressway is in the final stages of completion. This will also increase the connectivity to the industrial areas around New Gurgaon, generating additional demand for residential and industrial sectors.
References:
1. Gurgaon Master Plan-2021
2. Gurgaon Master Plan-2025
3. Gurgaon Master Plan-2031
4. Regional Plan of NCR-2021
5. Rapid Metro Gurgaon official website (http://www.rapidmetrogurgaon.com/)
6. HUDA, Status of major projects undertaken as on 31.12.2013
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4. Major Challenges
4. 1 Transportation: New Gurgaon has good connectivity with Delhi and other NCR areas through the upcoming Dwarka Expressway, Kundli-Manesar-Palwal expressway, existing NH-8 and Gurgaon-Pataudi road but public transport within the region is one of the major challenges. Bus facility in New Gurgaon lacks availability, comfort and frequency. Para-transit modes of transportation like auto-rickshaws and cycle- rickshaws are also not currently available in these sectors and no designated spaces for their parking as well. Inner roads of Gurgaon are not well maintained and have traffic congestion problems due to which the Sectors in New Gurgaon become less accessible. Expressways that pass through the city have heavy traffic that creates problems for pedestrians. The pedestrian level crossings are available only at the metro stations which makes it highly difficult for people to cross the road at other places, particularly at intersections. 4.2 Social infrastructure: Existing education and healthcare infrastructure provisions are adequate for Old Gurgaon. But most sectors in New Gurgaon, being developed by private developers, lack government schools, hospitals and other infrastructure. Though new schools and hospitals are being built in the area, but they are not affordable for all sections of people. While developers are providing 25 per cent of FAR to Economically Weaker Sections (EWS) in every project, but the social infrastructure provisions for EWS and LIG class people are not being taken care of. However, Gurgaon Development Authority is expected to provide good social infrastructure with schools and hospitals which will cater to poor sections of societies as well. 4.3 Utilities and Services: Two Sewage Treatment Plants are located in Gurgaon - one at Sector 104 and the other at Berhampur. Available infrastructure for the sewage treatment does not reach the actual demand. Many sewage lines are clogged and choked due to which the sewage in some sectors is transported directly to open grounds.
Some localities in Gurgaon such as DLF City, South City, Ardee City, Sushant Lok and others face water shortage problem every summer. Whereas New Gurgaon currently is not facing such issues right now due to low habitation levels. However, in future there might be a chance of water shortage here too. To solve this issue, water boosters have been recently installed in the city in anticipation that water will reach the high-level areas including New Gurgaon.
The power consumption has increased from 17.5 million units in 2012 to 22.5 million units in 2013. The government has accounted for 10 per cent increase in power consumption because of which there is 25 per cent shortage in summer and rainy seasons in Gurgaon. These challenges need to be addressed by the government by building new power plants or by increasing the capacity of the existing power plants.
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4.4 Illegal/unauthorized colonies: There are many illegal/unauthorized colonies situated in northern part of Gurgaon. These colonies are mainly located in rural Gurgaon where most sectors of New Gurgaon are being developed. This will be one of the major issues because these colonies are not accessible to any social and physical infrastructure facilities provided by the government. Recently, the government has taken a step forward by providing facilities in these areas by regularizing them.
The HUDA collecting fee of Rs. 250, Rs. 200 and Rs. 150 per square yard for regularization and Rs 200, Rs 150 and Rs 75 per square yard for development charges for areas falling under the limits of municipal Corporation, Municipal Councils and Municipal Committees are respectively. The collected charges are used for the development works in the same declared areas. 5. Environmental Constraints
Gurgaon has seen rapid growth in terms of population and development. But infrastructure has not kept pace with this rapid growth. The millennium city also faces many environmental issues like water, air and land pollution and waste management.
The groundwater level in Gurgaon has decreased substantially in the past few years on account of rapid growth which has increased groundwater usage to a large extent. According to a study, there is demand supply gap of 93 MLD water. There are many borewells which are not authorized by the government. New Gurgaon and other parts of the city have to meet their major water requirements from Yamuna river water through canals. There are two existing water treatment plants which supply about 100 MLD of water together, which is located in sector 100 and Budhera village along GWS canal. There is a dire need to have more water treatment plants through which GWS canal water can be treated and utilized.
Untreated sewage waste may be a threat to the environment. But in many parts of Gurgaon and New Gurgaon, sewage water is being pumped into canals without treatment, which pollutes the canal water and makes it unfit for usage. Solid waste is being thrown out on open lands due to inefficiency in maintenance. Usage of high amount of groundwater, dumping of untreated sewage and solid waste will lead to many environmental problems, which in turn will have a significant affect on air and water quality.
References:
1. Vatsala Shrangi, (2014) Haryana back to power cuts, The Sunday Guardian, 12 May, 2014.
2. Gurgaon Renewal Mission, GRM Secretariat (http://www.gurgaonrenewalmission.in/)
3. Gurgaon Master Plan-2031
4. Gurgaon Waste-Water Portrait, Centre for Social and Environment, 2012.
5. Hooda govt to regularise 743 colonies, Tribune India, 19 Nov, 2013.
6. HUDA official website (www.huda.gov.in)
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6. New Gurgaon Real Estate Overview 6.1 New Gurgaon Circle Rates Table 6: New Gurgaon Circle rates 2013-14 (W.e.f. 01.04.2013) Agriculture Land Residential Commercial S No Sectors Name of Village (Rs. Per Acre) (Rs. Per Sq. Yards.) (Rs. Per Sq. Yards.) 1 Sector 79A Shikhopur 19000000 6000 10000 2 Sector 81A Nakhrola 15000000 10000 30000 3 Sector 85 Sikanderpur Badha 15000000 7000 12000 4 Sector 86 Badha/Nwada Fatehpur 15000000 6000-10000 12000 5 Sector 88 Bamrauli 12500000 5000 15000 6 Sector 88A Harsaru 10000000 5500 15000 7 Sector 92 Mewka/Dhorka 12000000 5000-6500 10000-15000 8 Sector 93 Hayatpur 12000000 7000 12000 9 Sector 95A Wazirpur 11500000 6000 15000 Note - Value of Land Falling on NH-8 will be 20% more upto the depth of 2 Acre from the road. - Value of Land Falling on Pataudi-Tauru Road will be 10% more upto the depth of 2 Acre from the road. - Land less than 1000 Sq. Yards will be treated as residential for stamp duty collection. Source: Revenue Dept., Gurgaon
Table 6 shows the circle rates in New Gurgaon. The residential rates are maximum in Nakhrola at Sector 81-A because of its proximity to NH-8 and its easy accessibility to the upcoming commercial stretch. The circle rates for agricultural land are maximum in Shikhopur at Sector 79A. On a broader scale, the residential circle rates in New Gurgaon are within the range of Rs 5000 to Rs 10,000 per sq. yard. 6.2 Supply and Absorption:
Fig 10: Year wise Supply and Absorption in New Gurgaon/Source: Real Estate Insights by CommonFloor.com From Fig. 10 we can infer that there has been a steady increase in both supply and absorption from 2008 to 2011. The demand over these years has been catered by the constant increasing supply. However, due to economic slowdown which hit the overall real estate sector, supply in 2012 has New Gurgaon Report by CommonFloor.com
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decreased drastically. CommonFloor data indicates that the supply has declined from 9,000 units in 2011 to 5,000 units in 2012. But the extension of Dwarka Expressway, according to Master Plan-2025, increased demand for residential units in New Gurgaon as a whole compared to other localities in NCR. Hence, in 2013 there has been more than 10,000 units launched.
Supply and Absorption (Quarterly):
Fig 11: Quarter wise Supply and Absorption Source: Real Estate Insights by CommonFloor.com In Fig. 11, if we look at the supply and absorption for the last two quarters, it can observed that there is a huge difference in supply with around 1400 units in Q4-2013 and more than 3000 units in Q1-2014, according to CommonFloor data. As for absorption, the first quarter of 2014 has seen good absorption as compared to Q4 2013. 6.3 Sector wise Analysis
Fig 12: Sector wise Supply and Absorption Source: Real Estate Insights by CommonFloor.com According to Fig. 12 and 13, Sector 82, located around 2kms from NH-8, has seen the highest supply and absorption over the years. Based on CommonFloor data, Sectors 77, 78, 79 and 80 has less number of residential units supplied in comparison to other sectors because of its locational attributes. These are the farthest sectors from the centre of Gurgaon. Sectors 88A, 88B and 89A also have less number of New Gurgaon Report by CommonFloor.com
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units supplied since these sectors have been newly formed according to the recent Master Plan-2031 approved in 2012.
No of Units Supply High Low Fig 13: Heat map showing Supply Source: Real Estate Insights by CommonFloor.com
6.4 Projects by Launch and Projected Completion Date
Fig 14: Supply by Launch date and projected completion date Source: Real Estate Insights by CommonFloor
From the above two graphs (Fig 14), projects which were launched in 2008-09 with projected completion in 2012-13 were delayed further and are expected to be completed by 2015. Therefore we can clearly see a delay in projects due to the economic slump in the years 2008 and 2009. Many projects which started in the years 2011, 2012 and 2013 are now expected to be completed by 2015 and 2016
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resulting in huge number of units supplied in these years. Subsequently, the units which will be launched over 2014 are expected to increase the number of supply in 2017 and 2018. 6.5 Price Trend
Fig 15: New Gurgaon Weighted avg. price trend Source: Real Estate Insights by CommonFloor.com
Fig. 15 indicates that the weighted average price (WAP) has seen a sharp increase between Q2 2012 and Q3 of the same year. According to CommonFloor data, there was an increase of almost 22 per cent in
that year. Post this, the increase in WAP has been going steady with the current value at Rs 5550.
Weighted Avg. Price High Low Fig 16: Heat map showing weighted avg. price trend Source: Real Estate Insights by CommonFloor.com
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Fig 17: BHK configurations wise Price per sq. ft. Source: Real Estate Insights by CommonFloor.com
Fig 17 depicts that 1BHK and 3BHK units have seen large variation in per sq. ft. price. This is on the account of the fact that luxury projects in New Gurgaon are increasingly incorporating 1BHK for migrants such as bachelors and newly married couples.3BHK has emerged as a popular segment since the per sq. ft. prices are much lower than the neighboring Gurgaon sectors, people are opting for larger sizes.
6.6 Projects in New Gurgaon i. Large Projects: Currently, there are about 10 projects in New Gurgaon that offer around 1000 residential units each. In this category of housing, several renowned developers of NCR such as Vatika Group, Supertech, Lotus Green, Orris Infrastructure, DLF Ltd. etc. have started projects. The price for a 2BHK and 3BHK ranges between Rs 5000 to Rs 7500 per sq. ft. ii. New Gurgaon Residential Market Segment
Luxury Projects: The Luxury and Ultra luxury projects in New Gurgaon captures 56 per cent of share in residential market and few projects are being developed by renowned builders such as DLF Ltd., Raheja developers, Vatika Group, Orris Infrastructure etc. These projects are offered in the price range of Rs 7500- Rs 8500 per sq. ft. with an average size of 2000 sq. ft. for 3BHK Source: Real Estate Insights by CommonFloor Fig 18: Residential Market segment share units.
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Mid and Affordable Projects: In the Mid and affordable segment, New Gurgaon has very little options available by various developers such as Era Landmarks Limited, Ansal API, Ramprastha Group etc. The 2 and 3BHK flats in this segment are available at a starting price of Rs 3000 per sq. ft.
Table 7: Some Important New Launches in New Gurgaon
S Project Total Rate Launch Possession Locality Builder Name Project Name No Type Units per Sqft Year Year Elan Mercado 1 Sector-80 Elan Limited Service apartments 180 7950 2013 2017 Apartment Lotus Greens 2 Sector-89 Lotus Greens Woodview apartments 300 7500 2014 2017 Residences Microtek Microtek 3 Sector-86 Infrasturctures apartments 700 6800 2014 2017 Greenburg Pvt Ltd Ansal Housing And Soft 4 Sector-88A Ansal Amantre apartments 500 6250 2018 Construction Launch Ltd DLF Garden City 7450 - 5 Sector-81 DLF Group apartments 922 2013 2018 The Ultima 8700 VSR Infratech VSR 83 Avenue 6 Sector-83 apartments 50 6500 2013 2017 Pvt Ltd Managed Homes Godrej soft 7 Sector-88A Properties Godrej Oasis apartments 300 6500 2017 launch Limited Vatika Express soft 8 Sector-88A Vatika Group apartments - 6750 2017 City launch Orris 9 Sector-89A Infrastructure Orris Greenopolis apartments 2300 6250 2014 2017 Pvt Ltd Source: Real Estate Insights by CommonFloor.com
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CommonFloor.com, Bangalore maxHeap Technologies Pvt Ltd #298,299 SGR Towers 7th Cross, Domlur, Bangalore - 560071. ------Authors Tunuguntla N Sannihith Vishal Nagula Meha Singla Research Associate Sr Analyst Manager Research
[email protected] [email protected] [email protected] Bangalore Bangalore Bangalore
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New Gurgaon Report by CommonFloor.com
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