Gurgaon is a long story that has everyone hooked. Here is our break up and analysis of Gurgaon.
Gurgaon can be looked at in three parts. One, is the existing and the oldest developments on MG Road. These include Beverly Park, Garden Estate, Heritage City among others. These are currently trading in the range of Rs. 12,000 psf to Rs. 16,000 psf.
Then came the new development of Golf Course Road which started around 5 years ago. We are now at a stage where the projects are being delivered (Belaire, Park Place, Suncity La lagune).These projects are trading at Rs. 10,000 psf to Rs. 13,500 psf.
After this, and this is the most recent waves of development, there have been three new block of development in Gurgaon. One, golf course extension road, where a number of projects have been launched in the last few years and only a couple have actually come up. This is already expensive at between Rs. 8,000 to Rs. 10,000 psf. Second, we have Dwarka Expressway, which is the latest buzz word in the industry. Projects here started launching 2 years ago and launched in the range of Rs. 7,000 to 9,000 psf. They are currently at around Rs. 6,000 to 8,000 so we have seen decrease in prices. Third, we have new gurgaon, which is near Manesar. Projects here were launched in the range of Rs. 3,500 to Rs. 4,000 and are now trading in the range of Rs. 5,000 to Rs. 5,500.
Looking at other parts of DEW closer towards Delhi, apartments are selling at Rs. 8,000 to Rs. 10,000 per square foot. We don’t see these apartments appreciating more than 20-30% in the next five years. We look at the benchmark of MG Road and Golf Course Road where the prices are hovering around Rs. 18,000 psf and Rs. 13,000 psf respectively. We don’t see Dwarka Expressway going beyond golf course road in the coming years. New Gurgaon has the potential of higher appreciation simply because our base in much lower at between Rs. 5,000 – Rs. 5,500 per square foot.
The other problem in Gurgaon for us is that its an investor driven market. Residential developments are lying empty because not enough end users are buying! This leads to a cyclical problem where when an end user visits the complex to see if he should move, he gets put off by the empty apartments.
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