Is New Gurgaon a booming affordable housing market in Gurugram?

RE: Is New Gurgaon a booming affordable housing market in Gurugram?

Sectors 81 to 95 of Gurgaon constitute what is known as New Gurgaon by many. Located on the right side of NH-48 before Manesar and ahead of the Kherki Daula toll plaza, New Gurgaon is being looked upon as an affordable market haven holding a lot of promise. Augmented connectivity courtesy the Northern and the Southern Peripheral Roads and a fast-improving infrastructure add to the future potential of the region. Only Dwarka Expressway is looked upon as a competition to New Gurgaon in affordable housing.

Price Factor

New Gurgaon offers home-buyers and investors a plethora of residential options, ranging from affordable segment to luxury apartments. In comparison to established localities such as Golf Course Road, Sohna Road and Golf Course Extension Road, New Gurgaon offers much more competitive prices. The locality’s average price rates hover around INR 4,800 per sq. ft mark, around 130% lesser than those of Golf Course Road, 70% lower than that of Golf Course Extension Road and 40% lower than those of Sohna Road. DLF, Godrej Properties, Bestech Group, Oris Group and Vatika Group are some of the major developers operating in the area. A typical 2-BHK flat of around 800 sq. ft in the area would cost around INR 46 lakh while 3-BHK measuring around 1,700 sq. ft would hold a price of INR 82 lakh.

Types of residences available

There are 2 major types of residences available in New Gurgaon – high-rise flats (91%) and G+2 independent builder floors (8%). 83% of the supply of homes belongs to the ready-to-move-in category, while 17% of the units are under-construction with possession due in the next 1-3 years. The near-perfect location of New Gurgaon gives it a major advantage as a preferred residential destination – it’s neither too much on the outskirts nor too much deep inside the city, and thus presents a balanced residential option to buyers in terms of affordability, infrastructure, connectivity and amenities. No doubt, New Gurgaon offers a tough competition to the even Dwarka Expressway.

Setting up of some shopping malls and commercial shops in the area have translated into heightened demand for both under-construction and ready-to-move residential units in New Gurgaon. Interestingly, 3-BHK units form the bulk of the demand in the area with apartment’s priced INR 60 lakh and above being a preferred purchase choice of buyers. Of course, the affordability factor is coming into play here, and buyers would indeed go for bigger apartments if they can buy a 3-BHK in the budget of a 2-BHK. In the last 2 years, 43% of the new launches are, therefore, 3-BHK flats, followed by 2-BHK apartments at 36% and then the 4-BHK units.

Investment prospects in New Gurgaon

Housing prices in New Gurgaon grew by around 20% over the last 5 years. No doubt, the area continues to enjoy high residential demand, absorption as well as supply. Experts vouch for bigger things to happen over the next couple of years, with a swiftly expanding infrastructure and many projects nearing delivery. Last but not the least; the commercial landscape of New Gurgaon has also begun to see pace given the initial push imparted by the residential segment.

 

Answered on July 28, 2020.
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