Dwarka expressway to spur realty boom, say experts

Real estate experts say that the growth along Dwarka expressway was not “overnight”, but has been sustained over a period of 10 years

The operationalisation of the Haryana stretch of the Dwarka expressway on Monday is expected to further spur the growth in the micro realty market that has developed around the key road corridor which promises greater connectivity with Delhi, easier commute within Gurugram and reducted congestion and pollution -- facets that experts say are attracting buyers and investors from across the country, and even abroad.

The Haryana stretch of the Dwarka Expressway was inaugurated by Prime Minister Narendra Modi in the National Capital Region on Monday. (Vipin Kumar/ HT Photo)

According to data from Jones Lang LaSalle (JLL), a real estate consultancy, a total of 12,409 housing units were sold in this submarket in 2023 -- 66% of the overall sales in Gurugram. Compared to 2022, the market recorded a 67% growth. In terms of investment, the housing units sold fetched a whopping ₹25,000 crore, the data showed. Interestingly, out of these 12,409 units, 97% were under construction at the time of sale, it added.

Real estate experts say that the growth along Dwarka expressway was not “overnight”, but has been sustained over a period of 10 years, during which it witnessed both highs and lows.

The expressway project was conceived in 2007 by Haryana government and it had to overcome several legal and procedural obstacles to reach finalisation in 2024.

Long time real estate watchers say that the road project initially spurred real estate between 2012 and 2016, but the delay in its completion ensured that it could not maximise its potential for both home buyers and investors.

The Dwarka expressway passes through Gurugram sectors 113, 112, 111, 110, 109, 108, 107, 106, 104, 103, 102, 99, 88B, 37D, 36A and 36B. The catchment area of the road, however, includes sector 81 to 115. It also connects to the Southern Peripheral Road, Manesar road, Pataudi Road and has linkage with Sohna Road and the Delhi Mumbai expressway.

With the completion of Haryana stretch of the expressway, developers are hopeful that the bets that they took in last few years, will finally take off. Currently, around 150 residential projects have been delivered along this road in sectors 81 to 115, and expressed the hope that more projects will be launched.

“High-end projects are getting launched in this submarket. 39% of the new launches in this cluster were priced at ₹2.5 crore per unit or above. The project launches garnered good traction in terms of demand and few of them were fully sold within a few days of the launch” said Dr Samantak Das, chief economist and head, research & REIS, India, JLL.

The opening of this road is not only expected to transform the areas in Gurugram but also in neighbouring Delhi, particularly villages in the residential zones, said experts.

Anshuman Magazine, chairman and CEO, CBRE India, said with the completion of the Dwarka expressway, there has been a reduction in the backlog of unsold properties in these areas, from a substantial 25% to 30% 8-10 years ago to just 7-8 %now. “The expressway, particularly the 15 km stretch within Gurugram, has facilitated the connection of various sectors to Delhi, leading to a flurry of residential project launches over the past decade anticipating the expressway’s benefits,” he said.

With the opening of road, property prices are expected to witness an estimated 10% upward revision in the near future, presenting an attractive opportunity for investors to reap substantial returns, experts added.

“With over 300,000 residents living in close to 150 residential projects, the expressway has already made its mark as one of the hottest realty corridors in the country. This is clearly evident from average year-on-year capital appreciation of 20-25% with property rates going as high as ₹20,000 per square feet. What makes it a great real estate hub is its excellent intracity and inter-city connectivity with proximity to NH8, Sohna Road, Delhi-Mumbai Expressway and Delhi’s IGI airport,” said Vinod Behl, a city based real estate expert.

According to the JLL report, the average capital value of flats in 2023 in this market was approximately ₹10,000 per sqft, a 15% increase from 2022, which is expected to increase further.

Rohit Mohan, senior vice president, BPTP, real-estate developer, said,“At the heart of Dwarka Expressway’s attractions lies its strategic location, serving as a vital link between Delhi and Gurugram. This expressway offers more than just a route as it presents a solution to the perennial challenge of commuting between these two bustling hubs.”

Due to high demand for housing along the Dwarka expressway, developers are also hopeful that commercial and retail segment, which had suffered a setback due to Covid-19 pandemic, will also record a recovery, experts said.

“With more home buyers and tenants coming in this area, we are expecting that vacancy in commercial spaces will reduce. We may not witness a strong rise in rentals but at least the built-up spaces won’t remain vacant in both office and retail segments” said Kamaljeet Singh, vice president, Bestech, a city based developer.

Taking advantage of the buzz around Dwarka expressway, a number of developers have also launched new housing projects and managed to sell the units due to high demand from buyers. Pradeep Aggarwal, chairman, Signature Global, said that in their recently launched project on expressway, they were able to sell over 1,000 flats within two days. “Buyers from across the country and abroad expressed their interest in buying homes in sector 37 due to its location and quality amenities being offered to them at a reasonable price. It was oversubscribed 5.4 times. “ he said.

A large number of corporate executives, IT employees and NRIs are among the buyers in new projects being launched along this road. “People from diverse backgrounds are buying homes in new projects and this is a good development. There are also a large number of investors who are looking to make profit. The need is to ensure that speculating tendencies are curbed,” said Pradeep Mishra, a realty consultant.

The nod for transit-oriented development along Dwarka expressway will also significantly improve things, say developers. This will pave the way for vertical growth in both residential and commercial segment and help absorb a large number of people, the developers said.

With this expressway improving connectivity between Delhi and Gurugram, it has also sparked real estate development in Delhi villages such as Kanganheri, Ghalibpur, Jhatikra as demand for farm houses has increased in these villages designated as green development areas. “This expressway will boost supply of greenfield realty projects in Delhi. The connection with UER-II road, new proposed road to Jhajjar, AIIMS and other arterial roads will help in transforming the entire area. It will also integrate Gurugram, Dwarka and Manesar in a more compact urban unit,” said Ramesh Menon, a city based urban consultant.

Commenting on the launch of Dwarka expressway, Pankaj Pal, managing director, Whiteland Corporation, said the realty market in Gurugram is poised for a significant upswing, and property prices are likely to witness a steady appreciation. “This is an opportune time for those looking to invest in the future of urban living in Gurugram.”

Ravi Saund, founding director, Emperium Developers, who will soon launch a project in sector 37 C, near Dwarka expressway. said this corridor will unlock the real estate potential of the city, create employment opportunities and stimulate local economies. “It will not only reduce commute time but also improve the quality of living of people,” he said.