This key micromarket in the NCR is soon going to get another push on the development front. The government recently notified the tunnel project, on hold for some time now, connecting the region to the IGI airport, which will offer the market a significant pull factor—Ankit Sharma
Developers have welcomed the news that work on the tunnel connecting Dwarka Expressway and the IGI airport is being re-planned and revived.
They added that this would bring back buyers and enhance the attractiveness of the region. This is good news for buyers and the overall development of the region, too.
“The Dwarka Expressway tunnel plan to connect it with the IGI airport will boost the real estate market in the region tremendously. This tunnel will be a bypass connecting Gurugram and Dwarka to the IGI airport. Presently, the approach through NH-8 to the airport from Gurugram is congested, especially during peak hours — this tunnel will decongest traffic and be a big relief for commuters. This new easy accessibility and connectivity will boost the market in the region to a great extent,” Praveen Jain, vice-chairman of Naredco and MD of Tulip Infratech, said.
While developers are elated with the news, buyers’ expectations for the region, too, are high. This will continue to add to the overall surge in the activity in the region. “This news is going to help developers and lift the overall sentiment in the region, which is low due to the current slump,” Santosh Agarwal, chief financial officer of AlphaCorp, said.
“While the news is welcome, development firms in the region are now focusing on completing their existing projects under construction and repay their loans, if any,” Agarwal said. The Dwarka Expressway project was commissioned in 2007. But work has been delayed by almost a decade, which affected projects coming up on this stretch. In an already sluggish market, the direct impact has been on the sales and absorption of projects in the region. The 29km stretch, of which around 18km is in Haryana, was affected by legal issues and controversies around land acquisition. The development of the mega road is now almost complete. The road connecting Dwarka and Palam Vihar, currently, has some connectivity hurdles. The region is important as it includes Sectors 99 to 115.
THE REGION’S CURRENT STATE
Realtors in the region agree that sales are subdued and units are selling at corrected rate. The average rate is lower than the marked rate of Rs 5,995 per sq ft. There is pain among developers over the inventory overhang, too. Buyers who came in at the initial stages are waiting for delivery of their apartments. This has also impacted sales and subsequently the capital values of projects under-construction in the region.
However, developers say news of the tunnel and removal of basic infrastructure hurdles will add momentum to the overall development in the region. “Any positive development will lift sentiments in the region. Development firms are now focusing on the completion of projects,” Agarwal says. Most new buyers looking at the region and the rest of Gurugram are opting for completed projects. “Buyers are looking only at ready-to-move-in properties or those which are nearing completion,” Sushrat Gupta, a consultant in the region, said.
WHAT LIES AHEAD?
The best part of the area is that several wellknown development firms have projects in the region, including Puri Constructions, ATS Group, Chintels Group, Sobha Developers, Experion Developers, Mahindra Lifespaces, Godrej Properties, Paras Buildtech, and Emaar.