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Gurugram realty sees a revival after 5 years  |  June 21, 2019

Ajay Kumar & Kausar Firdausi Guragon

The revival of confidence among buyers could lead to prices of residential and commercial properties in Gurugram increasing by as much as 10% to 20%. The market in Gurugram is now witnessing the positive effects of the implementation of Real Estate (Regulation and Development) Act, 2016 (RERA).


Bucking the trend in urban centres around the country, real estate in Gurugram is leading a revival of investor sentiment in the National Capital Region. One of the biggest reasons for this buoyancy, breaking a five-year dry spell, is strict implementation of the law, say experts.


The revival of confidence among buyers could lead to prices of residential and commercial properties in Gurugram increasing by as much as 10% to 20%. "In the beginning of 2014, the real estate market in the National Capital Region (NCR) was witnessing a downward trend owing to multiple reasons - including a slowdown in the economy and lack of buyers' faith in builders. This continued till 2018," recalls Dr KK Khandelwal, chairman of the Haryana Real Estate Regulatory Authority (HRERA).


The market in Gurugram is now witnessing the positive effects of the implementation of Real Estate (Regulation and Development) Act, 2016 (RERA). In the last two months, construction of 20,000 new flats has started in the Millennium City, bringing in investments of Rs 3 lakh crore into the real estate business. "Earlier, developers used to take investors' money and divert it to other projects. Such practices were widely prevalent before 2014.


Now, as many as 2.45 lakh properties in Gurugram are under the HRERA's scanner since these projects are either not completed or stuck for long.


Many more buyers are coming with us to force builders to complete projects, instead of wanting to get their money refunded. The laws of RERA have put builders in a position in which they cannot afford to delay their projects," explains Khandelwal.


Kavita Bishnoi, a financial consultant with an auto component company in Manesar, recently booked a three BHK flat on the Dwarka Expressway.


"The implementation of RERA in 2017 sent out a message to builders to complete their projects on time," says Bishnoi. "It also encouraged me to invest money in our dream home. The builder has now promised me and other buyers to complete the project by mid of 2021," she adds.


Other home-buyers, such as BPO executive Kamlesh Damodar Pundit, were wary of investing their hard-earned money in residential and commercial units since they feared a slowdown in the economy after demonetisation. "After demonetisation, there was uncertainty over the projects and hence I did not invest my money to buy a home. When we realised after 2018 that the real estate market was coming back on track, I booked a 2BHK flat, slightly expensive by 2018 standards, in Sector 65 on Golf Course Extension Road. I'll get possession by the end of 2021."




The real estate majors operating in Gurgaon are bullish about this revival. "Gurugram had been the favoured destination for mid and upper ticket size housing units. The presence of corporate offices has added to this. The demand for housing is not just sustainable, but is also increasing in spite of the market being slow," says Kushagr Ansal, Whole Time Director, Ansal Housing. Affirms Sanjeev Pathak, senior vice-president, sales, DLF: "New Gurugram has emerged as a preferred choice for buyers in the last few years. The area is strategically located between Manesar, Gurugram, and Delhi with direct connectivity to NH-8. The spate of recent infrastructural developments, once completed, will further bolster connectivity."


As the market is becoming transparent and buyer trust returning, the banking sector, too, is reposing its faith in the segment. "Banks are coming forward to give loans for home and commercial purposes simply because they are now sure that the projects will be completed in time and therefore their money would get repaid in time," says Ramesh Gauba, a Gurugrambased real estate dealer.




The next few years will be even more exciting for buyers since builders are under pressure to complete projects in the next three years, in line with PM Narendra Modi's promise of 'housing for all by 2022'.


With the delays in the completion of the Dwarka Expressway almost resolved, the demand will see a further boost. Commenting on the effects of this, Prashant Solomon, managing director of Chintels India and treasurer, CREDAI, an apex body of private real estate developers' associations, says: "It is good news for the area as developers have invested over Rs 60,000 crore in residential and commercial projects along the 150-metre-wide roadway, but had been struggling to sell projects due to lack of proper connectivity. There are around 1.5 lakh home buyers who have suffered for more than a decade due to the delay. As the entire land required for completing the Dwarka Expressway now vests with NHAI, we are hopeful of a quick completion of the road project."




In Gurugram, the realty investment hotspots are the areas where the Southern Peripheral Road and Northern Peripheral Road (as the Dwarka Expressway is also known) meet at NH-8 (sectors 99-112 and 37D, sectors 58-63, 68, 78-81, 84, and 85-86). As per data by Anarock Property Consultants, the weighted average price for properties launched between January to May in 2019 is Rs 4,900 per sq.ft. Approximately 8,500 new units have been launched in Gurugram from January to May 2019, comprising nearly 51 per cent of the total supply in the entire NCR.


New Gurugram area will be the next residential hub, says Anupam Varshney, Head Sales and Marketing, Vatika Ltd. "With the implementation of RERA and GST, it is easier for buyers to make their choices and invest in property wisely," he adds.


Experts said that Gurugram will soon take a lead in affordable housing too since many projects are being launched in this segment.


"Affordable housing projects are also coming up across the city for low income group buyers. The maximum rate of these projects is Rs 4,000 per square feet. There are 45,000 properties in this segment near to completion or will be complete in next couple of years," said Rishi Raj Dayma, a property dealer.