Fringe benefits-Proposed expressway will connect these sectors to Dwarka’s sector 22 by 2010
Devesh Srivastava , Posted online: Friday, September 12, 2008 at 1409 hours IST
In what is being called as New Gurgaon there are only a few things that can be considered new. The Master Plan of Gurgaon-2021 being one of them.
The selling point being that the new sectors will not only meet rising demand for residential units but will also serve corporates to set up their office spaces. In the foreseeable future a proposed expressway will connect these sectors to Dwarka’s sector 22 by 2010. And with the newly demarcated sectors like 108 or 109 being only a mere five to six kilometers away from the International Airport, it does seem like the sectors might attract some huge investment.
Talking about the residential rates in the new sector, an average rate of Rs 2,800-3,200 per sq ft in the resale market is still affordable. Several developers have obtained licenses for developing group housing projects in the new sectors. Located close to these sectors, Palam Vihar and the New Palam Vihar areas are of high importance. These have finished option in comparison to the new sectors.
A closer look suggests that investors putting their money in these sectors or the Vihars will have to wait four to fives years for the appreciation of their property. Sectors 108 and 109 have a couple of projects called Vedaanta and Atharva, respectively. Raheja Developers is developing these two. These projects were launched around six months back.
One can only see the fencing around the sites, as he or she visits there. Navin Raheja, chairman- Raheja Developers says, “We have completely sold out the project Atharva at sector 109 while the booking is still on in Vedanta.” Apart from these two projects, Mahindra is also launching its project Lifespaces in September 2008 at sector 110A. All these projects are selling at around Rs 2,800 per sq ft. Raheja Developers are selling apartments at Rs 2,900 per sq ft and Rs 2,875 per sq ft for Vedaanta and Atharva, respectively. Rate at Mahindra Lifespaces is around Rs 3,000 per sq ft in the secondary market. Apart from these, Indiabulls have got their commercial projects at sector 106. At sector 109, KLJ has also announced its commercial.
Finished options
If you wish to visit this area, go straight on the National Highway 8. Turn left when you reach sector 12. Go straight till Jwala Devi Temple and turn left towards sector 3. Sector 3 has a group housing project, Park View Residency from Bestech Group. The project is nearing completion. The developer plans to hand over the possession by August 2009. Because of this reason, the rate at this project is Rs 3,545 per sq ft. Though, if one visits the marketing office of Royal Residency, developer is ready to offer discounts. Ansal API has developed the entire Palam Vihar. On offer are apartments at the celebrity towers in the range of Rs 2,800 to 3,100 per sq ft.If one compares the new sectors to Palam Vihar, the later seems to be a better option in terms of amenities and connectivity. This is the primary reason for a high capital value of apartments and plots in Palam Vihar.
Palam vs New Palam
New Palam Vihar cannot be compared to Palam Vihar in terms of development. Sector 3 and 5 near Palam Vihar are witnessing rapid infrastructure development. Repair of roads in Palam Vihar has already started. But New Palam Vihar still has unmetteled roads. HUDA seems to be banking on some big plans for redevelopment in this area. The new sectors mostly comprise of agricultural land with scattered dwellings. The roads are damaged and tractors and heavy-duty trucks ply on the village roads. Charan Singh Yadav of Neeraj Properties says, “The developers who have acquired land for residential projects have got licenses. Rest of the land is still agricultural. The area will take some four to five years to develop for urban living.” Moreover, New Palam Vihar is unorganised and unapproved by HUDA. Some realtors in the area believe that government will soon regularise the area, as people living here have ration cards and telephone bills in their name.
Rates and the market
Plots in New Palam Vihar sell at Rs 4,000-10,000 per sq yd. The rates are lower than that at Gurgaon. Kothis or Bungalows here, sell anywhere between Rs 35 lakh to Rs 70 lakh. Palam Vihar is even costlier. But because of the current slowdown, people can try their luck. Naresh Gaur of MNC Propmart says, “Rates have fallen by 20 per cent. But the market will not fall further because of the various infrastructure projects launched in this part of Gurgaon. Proximity to Delhi will add value to investor’s money.”New sectors that are close to city area and the highway have higher rates than those falling away from the highway.
Connectivity dividend
The prices in the area will escalate due to various announcements made by the government. Atleast developers in and around New Palam Vihar and Palam Vihar are trying to use these as unique selling points. The proposed expressway will connect Dwarka’s sector 22 to National Highway 8 and will come till Kheri Ki Daula. The later is a small suburb near sectors 108 and 109. The projects in the vicinity will surely benefit from the expressway. Realtors like Gaur feel that in future it will also impact the regularisation of New Palam Vihar.
Appreciation
Raheja of Raheja Developer says, “Both our projects have received tremendous response from the market.” He adds, “In terms of the price appreciations both our projects have already provided their owners good appreciation. Prices at Vedaanta and Atharva have already appreciated by 25 and 15 per cent, respectively.”By Diwali time, it is expected that developers will offer huge discounts. Gaur of MNC Propmart feels that developers will also offer discounts because there is stiff competition. He says, “Rates are still in the affordable range in the new sectors. Secondary market rates are even lower. And the options are numerous. Big developers like DLF, Raheja, Tulip, Parsvnath, Indiabulls, Sobha and Omaxe are doing residential as well as commercial projects.”As an investor think before you invest in this region. Making a choice between a residential and an agricultural plot would be a tough decision. But appreciation on a residential plot would be more than that on a residential plot.
