March 11, 2024: The Dwarka Expressway-New Gurgaon Cluster is expected to see more holistic development of real estate on the back of the operational expressway, according to a report by JLL. This is owing to the recent impetus being laid by the government on the overall connectivity of different important hubs in the country. The New Gurgaon-Dwarka Expressway cluster includes sectors 79-113 and sectors 36A and 37D.

The Dwarka Expressway-New Gurgaon Residential cluster is experiencing great buyer traction as a result of infrastructure enhancement and quality supply. Since reputed developers have launched residential projects, it has emerged as the hub of Gurgaon’s residential growth. The government’s construction of the Dwarka Expressway is evidence of the region’s potential for expansion. It has facilitated the development of residential clusters along the expressway and enabled smooth communication between Delhi and Gurgaon. It appears that the region has evolved into a priority development zone leading to the cluster’s overall expansion.

In 2023, a total of 12,409 housing units were sold in this submarket, which was 66% of the overall sales in Gurgaon. Sales were up by 67% as compared to 2022. These homes were worth approximately Rs 25,000 crore. Interestingly, out of these 12,409 units, 97% were under construction at the time of sale. This shows the increasing consumer confidence in under-construction projects as they are getting delivered on time.

Dr Samantak Das, chief economist and head research and REIS, India, JLL, said, “The Dwarka expressway–New Gurgaon cluster has become the new hotspot for premium launches in Delhi NCR. In 2023, a total of 11,270 housing units were launched in this submarket, which was 69% of the overall launches in Gurgaon. Launches were up by 166% as compared to the previous year as 4,231 units were launched in 2022. Notably, high-end projects are also getting launched in this submarket. A total of 38% of the new launches in this cluster were priced at Rs 2.5 crore or above. The project launches garnered good traction in terms of demand and a few of them were fully sold within a few days of the launch.

The country’s top developers are present in this cluster. Various mixed-use projects having retail options for the residents are also coming up in these micro markets which would provide daily convenience options to the residents, such as daily needs stores, pharmacies and F&B outlets.

Ritesh Mehta, senior director and head (north and west), residential services and developer initiative, JLL India, said, “Around 175 acre of land across 17 separate deals valued at over Rs 3,100 crore have been acquired by real estate developers since 2022 in this submarket. Apart from outright purchases, developers have signed JDAs/JVs for over 30 acre in the last year in this submarket to develop real estate projects.”

Over 11,000 housing units were completed in 2023 in this cluster. This submarket holds 29,742 under construction units in the pipeline. Notably, 45% (13,476) of the under-construction inventory is likely to be completed in 2024. This shows the dynamism of construction activities in this region and the opportunities for buyers to select from new stock.

This submarket’s average capital value in 2023 was approximately Rs 10,000 per square foot (sqft), a 15% rise from 2022. A more reasonable price increase should be anticipated as the launches in each of the submarket’s segments continue to roll out. Given the strong demand from buyers, new phases of previous projects are entering at greater prices.

With the expressway getting operational, the future looks bright for the entire real estate sector in the region. All stakeholders will benefit from this important public infrastructure project that will also have a positive impact on all types of assets. Retail and commercial developments will follow in the future.

In the coming years, we will continue to see the launch of commercial and retail projects, as well as a growing supply of high-quality residential properties. Developers will keep on purchasing land parcels to start new residential developments in line with increasing demand. Residential launches will continue to gain momentum across all price bands.