Delhi-Mumbai Expressway stretch opening sparks real estate boom in NCR

Delhi Mumbai Expressway is an ambitious infrastructure project, whose first completed section, Delhi – Dausa – Lalsot, will be dedicated to the nation by Prime Minister Narendra Modi on February 12.

The opening of the 246-km Sohna-Dausa section of the Delhi-Mumbai Expressway has not only reduced the travel time between Delhi and Jaipur but also opened the floodgates of real estate opportunities along the corridor. The benefit will extend to 26 districts across six states, of which 11 districts are in Gujarat and Maharashtra when the expressway would be fully operational.

The infrastructure connectivity is also expected to give an impetus to industrial growth, warehousing and logistics activities, which generate demand for residential, commercial, and retail sectors, they said.

Prime Minister Narendra Modi on February 12 inaugurated the Sohna-Dausa section and laid the foundation stone for road development projects worth over Rs 18,100 crore. Developed at a cost of over Rs 12,150 crore, the Sohna-Dausa section has reduced the travelling time between the two major cities from 5 hours to just 3 hours.

Land rates go up

Pratyush Adhana, a real estate broker active in Gurugram and Sohna, said the prices have shot up for properties located along the Gururam-Sohna elevated road and Sohna-Dausa part of the Delhi-Mumbai Expressway by around 60-70 percent in the last three years.

“Land rates have generally gone up by 60 to 70 percent in areas located around the Gurugram-Sohna-Dausa route. The growth is even higher for big-ticket projects by established builders such as Central Park, Godrej and Signature Global that are located around the corridor. The rates of properties in these areas are now between Rs 1,40,000 and Rs 1,60,000 per square yard versus Rs 90,000 to Rs 1,00,000 per square yard 2-3 years back,” Adhana told Moneycontrol.

Shauzab Kazmi, assistant director at Investors Clinic, a real estate company, said that because of improved connectivity, Sohna has emerged as one of the favourite investment hotspots from a real estate perspective.

“Rates of properties, be it residential, commercial or industrial have increased significantly. In projects of established builders such as Godrej and Central Park properties are being sold at the rate of over Rs 15,000 per square foot from around Rs 8,000 to Rs 9,000 per square foot 2-3 years back,” Kazmi said.

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Ashwani Tiwari, who bought a plot near Bhondasi village in Gurugram along the Gurugram-Sohna stretch of the expressway, said his property has seen an appreciation of over 66 percent in the last 4 years.

“I bought a small plot in Bhondasi for Rs 30 lakh in 2018 but the current rate of the plot is above Rs 51 lakh. So the rate of my property has increased by around 70 percent in 4-5 years. The jump in prices is because of improved connectivity and it is much higher for the plots located near the corridor,” Tiwari said.

Apartment prices rise

According to figures provided by the Central Park developer, in the last five years, property prices in Central Park Flower Valley project, which is located alongside Gurugram-Sohna elevated road, have jumped 2.5-3.5 times. The company said in 2018 it sold built-up flats in Central Park Flower Valley at the rate of Rs 6,000 per square foot while the same is being sold for Rs 15,000 per square foot. Similarly, the plot value was Rs 40,000 per square yard in 2018 while in 2023 it is Rs 1.55 lakh per square yard in the project.

Amarjit Bakshi, CMD, Central Park said the inauguration of the Sohna-Dausa stretch of the Delhi-Mumbai Expressway will herald a new era of infrastructure transformation and economic growth in the National Capital Region (NCR). “Sohna is an entry point of the Mumbai-Delhi expressway, which will provide the much-needed fillip in its emergence not just as a pivot town for all economic activities but also as a prominent real estate destination. The government’s other game-changing infrastructure developments in the region like the Gurugram-Sohna Expressway, KMP Expressway, freight corridor, Orbital Rail Corridor, connectivity to the proposed Jewar International Airport, and easy access to the operational IGI airport will be Sohna’s moment of glory," Bakshi said.

Pradeep Aggarwal, founder and chairman, Signature Global (India) said that the launch of the Delhi-Mumbai Expressway will have a cascading effect on property prices in Sohna and New Gurugram. “Consequently, the demand in both residential and commercial segments is expected to increase significantly in these regions. With Signature Global properties developed near the Delhi-Mumbai Expressway, we are confident that these appreciating property prices will be leveraged to further attract new homebuyers. We anticipate that social infrastructure developments around the expressway will have a multiplier effect in bolstering the Indian economic growth story,” Aggarwal said.

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Arvind Rai, director, valuation services, Colliers India said the operationalisation of the Gurugram-Dausa stretch of the Mumbai-Delhi Expressway can potentially change the landscape of Sohna town. “It will not only reduce the commute time but also give the required impetus to various economic drivers like industries, warehousing and logistics. The Gurugram–Dausa stretch passing through Sohna can potentially change the growth nodes of Gurugram," Rai said.

Land price appreciation near JNPT

According to developers, owing to Delhi-Mumbai Expressway that will get fully operational in June 2024, land prices in areas around Jawaharlal Nehru Port Trust (JNPT) port and parts of Raigad district near old Panvel may also increase by 30-40 percent.

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Manohar Shroff, senior vice president of Maharashtra Chamber of Housing Industry (MCHI), Navi Mumbai unit said, "The land appreciation has not taken place yet but in the coming months as construction work picks up the pace or nears to completion, we might see a land price appreciation of around 30 to 40 percent."

According to Shroff, currently around JNPT and Delhi-Mumbai Expressway, land prices range from Rs 1.5 crore to Rs 2 crore for a one-acre land parcel. These may increase by 30-40 percent. Having said that, commercial activity will benefit more than residential.

Gujarat towns to get a boost

The Expressway will help boost real estate markets in Ahmedabad, Surat and Vadodara in Gujarat as also aid economic activities in smaller towns in the state including Dahod, Limkheda, Panchmahal, Bharuch and Valsad, said Rahul Purohit, national sales head, Square Yards, a proptech platform.

"It will open new doors for the real estate markets there. It will provide a solid foundation for the development of residential projects, logistical parks, townships and commercial businesses. Further, the expansion of the expressway to JNPT will complement the development of the port and the Mumbai Trans Harbour Link, " he said.

Logistics and warehousing to get a fillip

Delhi-Mumbai Expressway runs along the alignment of the Delhi-Mumbai Industrial Corridor as well as the Dedicated Freight Corridor. Places like Dadri, Neemrana, Dholera and Shendre-Bidkin have already witnessed a massive spurt in economic growth.

“There will be several exit points along the expressway that would benefit these smaller towns. But this growth may be limited and haphazard due to unplanned interventions," said Gulam Zia, senior executive director - infrastructure and valuation at Knight Frank India, a real estate consultancy.

"Land value appreciation may largely be driven by demand-supply dynamics. The expressway would provide a major boost to the logistics and warehousing sectors followed by manufacturing and industrial. Real estate may follow only after there is enough job creation in these segments,” he said.