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Vishal Nagula Meha Singla Research Associate Sr Analyst Manager Research

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Vishal Nagula Meha Singla Research Associate Sr Analyst Manager Research Real Insights: Locality Snapshot New Gurgaon June-2014 New Gurgaon Report by CommonFloor.com 1 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. New Gurgaon Report by CommonFloor.com 2 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 New Gurgaon Report by CommonFloor.com 3 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 4 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 New Gurgaon Report by CommonFloor.com 5 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 New Gurgaon Report by CommonFloor.com 6 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 7 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 8 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.
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