Lying dejectedly on the outskirts of Delhi, Gurgaon today, having travelled a long way, stands tall as the favoured investment hub for NRIs and the preferred destination for realty giants.
A few years ago, the real estate industry, having exhausted its potential in the capital, started investing in the National Capital Region (NCR) in the hope of minting some profit. Faridabad, Ghaziabad and Gurgaon - all enjoyed their fair share of investment which saw the opening up of malls, multiplexes, residential projects and townships.
While the other two merely grunted and gulped the investments that poured in, Gurgaon showed such overwhelming promise that realty giants were shaken out of their reverie and both national and international real estate companies began to take this area seriously.
The results are there for all of us to see.
The last five years have not only changed the look and feel of Gurgaon but have also redefined the property development graph of the nation. Who would have thought that the concept of 'malls', which acted as major crowd pullers abroad, would become big ticket items here? Would anyone have imagined that Indians would start living in apartments and townships which could put their international counterparts to shame? And who could have anticipated that land prices in Gurgaon would soar through the roof?
Yes, by the looks of it, Gurgaon has arrived. And what is more it is most certainly enjoying its top notch position on the realty map. A fact vouched for by the recently released report on the developments taking place in Gurgaon by Propertyvertical.com.
According to the report, the real estate market in Gurgaon (at the moment) is ideal for actual end users and not for investors, all thanks to sky rocketing prices. The residential real estate scenario is overall slow as not many new projects are being launched, but commercial real estate is definitively experiencing a boom.
In the last six months there has not been much appreciation in residential real estate. It has been stagnant. On the other hand commercial real estate has witnessed around 10 per cent appreciation in the rates with a premium of around Rs 3,000 added in the last six months.
There is no denying the fact that property prices in Gurgaon are climbing up at a maddening pace. In such a scenario, the report by Propertyvertical.com has made our task simpler and our guess about price estimates more accurate. Going by the report, in the normal to middle residential segment (Category C Projects like JMD Group, Bestech Group, etc) the rates range between Rs 2,000 to Rs 4,000/ sq ft.
Whereas in the upper segment (Category BProjects like BPTP, Unitech, etc,) the rates range between Rs 4,000 to Rs 6,000/ sq feet. Owning property in the luxury segment (Category A Projects like DLF, Emaar-MGF Group, etc) would cost beyond Rs 6,000/ sq ft. The resale value of these flats on an average works out to more than Rs 4,500/ sq ft. A built-up house in Gurgaon may cost somewhere between Rs 1 crore to Rs 7 crore which includes duplex houses with an area ranging between 200 sq yards to 1200 sq yards.
Construction in Guragon on residential land under HUDA norms is allowed upto three floors ie ground, first and second with the option of a basement. The construction cost on a residential plot would work out to around Rs 500-700 per sq ft. The high price of apartments/flats vis-à-vis lower demand has caused inventory to rise as the market continues to see new developments and new products. But for the lower segment of apartments ranging between Rs 3,000 to Rs 4,000 per sq ft, there is considerable demand.
The Gurgaon residential segment constitutes around 30-40 per cent of premium end apartments and the rest, ie 70-60 per cent of middle and lower end apartments. In Gurgaon alone, around 5,000 to 10,000 flats would be ready to move into in the coming year.
A quick glance at the price index shows that property rates in New Gurgaon, which includes Sectors 27-34, 40-45 till 57, DLF Phase I-V, Ansals Sushant Lok Phase I-III and the development on the Sohna Road like Mayfield Gardens, Nirvana Country, etc are somewhere between Rs 25,000 - 1 lakh per square yard.
Whereas property rates in Sectors 2-5, 14-17 which come under Old Gurgaon are Rs 25,000 per square yards on an average. Apartment rates vary between Rs 3,000 to Rs 9,000 per square foot. Sectors 18 and 19 are Gurgaon's industrial segments. In Old Gurgaon, industrial sectors 18, Sector 52 and 56 and areas like DLF and Sushant Lok are completely developed.
With major infrastructure development in and around the city, not only Gurgaon but also suburbs like Manesar, Kundli, Bhiwadi, and the Sohna Road are proving to be excellent investment opportunities.