With Prime Minister Narendra Modi inaugurating the Gurugram section of the Dwarka Expressway, which connects New Delhi and Gurugram, on March 11, the stage is set for a boom in property prices along the corridor.
According to experts, the expressway opens up new opportunities for the real estate sector. In anticipation of the opening of the Dwarka Expressway, this area had already become one of the most sought-after micro markets of the National Capital Region and several new projects have come up.
Experts said prices of property and land located in sectors along the corridor may increase by 10-15 percent in the next few months. Dwarka Expressway is the country’s first eight-lane elevated urban expressway.
Delhi-Gurugram Dwarka Expressway
Dwarka Expressway project
According to officials of the National Highways Authority of India, the 29-km expressway will connect Dwarka sub-city in the national capital with Kherki Dhaula toll plaza on NH-48 in Gurugram. Currently, only the 19-km Gurugram section of the controlled-access expressway has been opened.
The estimated cost of the project, which has been delayed by a decade, is above Rs 9,000 crore. With the opening of the Gurugram section, sectors 82 and 84, which are closer to Gurugram, will be connected with sectors 109, 110, and 113, which are nearer to Delhi, where many residential projects have been launched in the past 10 years.
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According to a study by ANAROCK, about 51,500 units were launched in the Dwarka Expressway micro-market between 2013 and Q1 of 2023 across various budget segments.
The expressway is linked by a grid of roads connecting areas such as Old Gurugram, Golf Course Road, Golf Course Extension, Basai, Hero Honda Chowk, Pataudi Road, Central Peripheral Road and the Southern Peripheral Road.
Impact on real estate
According to real estate experts, the expressway will not only reduce travel time between Delhi and Gurugram but also boost property opportunities along the corridor. There are over 400 approved projects in sectors alongside the Dwarka Expressway.
Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East and Africa at CBRE, a real estate consultancy, said the expressway transcends its role beyond a transportation link and acts as a pivotal force for economic and infrastructural revitalisation and is set to redefine the real estate landscape in the vicinity.
He said anticipation over the expressway in the past decade had already ignited a surge in residential development, especially in sectors bridging Gurugram and Delhi.
Also Read: Area Watch: Dwarka Expressway all set to trigger revival of real estate along its path
“With the expressway now complete, we are witnessing a promising downturn in unsold inventory levels in these sectors, from a significant 25-30 percent 8-10 years ago to a mere 7-8 percent now. Dwarka Expressway cuts through key residential and commercial hubs, so as a result, we foresee a notable appreciation in property and land prices in the vicinity, potentially rising by over 10 percent in the coming years, offering lucrative returns on investment for early investors,” Magazine told Moneycontrol.
Vishal Raheja, founder of InvestoXpert.com, said currently, land and property prices in the vicinity of Dwarka Expressway in Gurugram reflect the anticipation of improved connectivity and infrastructure development.
“Land prices in these areas have seen a steady appreciation, with some estimates suggesting an increase of up to 20 percent over the past few years. Property prices have also witnessed a positive trend, with developers and investors showing keen interest in projects along the expressway,” he said.
According to data from real estate consultancy firm Geetanjali Homestate, average property prices ranged from Rs 11,300 to Rs 11,700 per square foot in Q4 of 2023. That was a quarter-on-quarter growth of 6.5 percent and a year-on-year growth of 14.3 percent.
“With enhanced connectivity, the Dwarka Expressway is expected to catalyse growth across residential, commercial, and industrial sectors along its route. The improved accessibility will not only attract developers but also incentivise homebuyers looking for well-connected areas. Consequently, there is anticipation of a rise in property prices, driven by heightened demand and the infusion of improved infrastructure facilities,” said Sunil Sisodiya, founder of Geetanjali Homestate.
Vineet Dawar, senior VP for sales and strategy at Elan Group, said, “The expressway's promise of connectivity has already sparked a surge in demand, particularly in Sector 84 and 106, where we have witnessed 27 percent and 12.5 percent YOY growth in the previous quarter, respectively.”
Rentals to go up
According to experts, monthly rentals in the area range from Rs 25,000 to Rs 90,000, depending on the project, location and size.
Raheja of InvestoXpert.com said areas along the Dwarka Expressway are expected to become more desirable residential destinations, attracting a larger pool of tenants.
“This heightened demand for rental properties is likely to result in an increase in rental rates, with projections suggesting a potential rise of around 10-15 percent in the coming years," he said.
Magazine from CBRE said that riding on the back of improved infrastructure and connectivity, rental properties in the region are expected to see an upswing in demand.
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