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Gurgaon Property Rates Survey Report

IndianMoney.com Research Team | Posted On Friday, July 03,2009, 01:03 PM

Gurgaon Property Rates Survey Report

 

 

About Gurgaon

Gurgaon is the sixth largest city in the Indian state of Haryana. Gurgaon is a megacity, as well as the industrial and financial center of Haryana. Gurgaon is one of Delhi's four major satellite cities and is part of the National Capital Region (NCR) of India.

It is the southern-most district of Haryana. On its north, it is bounded by the district of Rohtak and the Union Territory of Delhi. Faridabad district lies to its east. On its south, the district shares boundaries with the states of Uttar Pradesh and Rajasthan. To its west lies the district of Rewari and the State of Rajasthan. Gurgaon is situated between the Himalayas and Aravalis mountain ranges. It is surrounded on 3 sides by Haryana and to the east, across the river Yamuna by Uttar Pradesh.

See Also: 5 Major Factors That Affect Property Prices in Cities

Over the past 20 years the city has grown tremendously as an manufacturing, outsourcing and shopping destination due to its world-class infrastructure at competitive prices and its strategic location (connected to Delhi Airport via a private Expressway, Mundra Port via railway, and New Delhi via Delhi Metro). A plethora of BPOs, KPOs and shopping malls dot the cityscape. The outsourcing boom has led to a rapid growth in employment prospects and local wages, leading to a mushrooming of shopping malls, swank restaurants and entertainment facilities. Demand for such lifestyle options is driven by the demographic shift to a younger, more cosmopolitan, more affluent and better educated population.

The fast growing population, with increasing purchasing power, has created a huge demand for housing, resulting in escalating property prices in recent years. Today, skyscrapers and modern shopping malls dot the city, which saw a major real estate boom in the late 1990s and post 2000's.

Gurgaon is considered as the unofficial "Mall Capital of India" as it is home to over three dozen malls. Gurgaon is known for its large number of malls and shopping facilities, attributed to be one of the major factors in its recent growth.

Gurgaon Property Rates Survey Report

Gurgaon Facts & Figures

Area
1,483 sq .km
Population
520,000 (Est. 2008)
Literacy
79%
Languages
Hindi, English, Haryanwi and Punjabi
Major Industries
Real Estate, Automobile, IT, Retail, BPOs, KPOs
Major Companies
Maruti Suzuki, Hero Honda, DLF, Unitech, Genpect
Altitude
220 m above sea level
Males
286,000
Females
234,000
Density
9294 persons per sq. Km.
Per Capita Income  
Rs.
Climate
Extreme Hot in Summer and Cold in Winter
River
Yamuna

 

Residential Property  (Apartment) Capital Value (Rs. Per Sq. Ft.)

Location
Current Quarter
Previous Quarter
Q-o-Q
(%)
Sector-30
4,500-5,600
4,700-6,300
-5%
Sector-45
3,000-4,000
3,100-4,200
-4%
Sector-46
3,000-4,000
3,100-4,200
-5%
Sector-47
2,200-3,000
2,400-3,200
-8%
Sector-52
4,500-5,600
4,600-5,800
-3%
Sector-56
3,000-4,200
3,000-4,300
-2%
Sector-82
1,800-3,000
1,800-3,000
-2%
South City
3,200-5,500
3,300-5,700
-4%
DLF CITY Phase I
4,200-5,500
4,300-5,800
-2%
DLF CITY Phase II
6,000-7,500
6,200-7,800
-3%
DLF CITY Phase III
4,200-6,000
4,400-6,200
-4%
DLF CITY Phase IV
4,800-6,500
5,000-6,700
-2%
DLF CITY Phase V
4,500-6,200
4,600-6,400
-2%
Palam Vihar
3,500-5,000
3,700-5,200
-5%
Sohna Road
2,500-3,500
2,600-3,600
-5%
Sushant Lok
4,000-5,500
4,200-5,800
-5%
Vatika City
3,000-4,000
4,200-4,300
-8%
Nirvana Country
2,800-4,000
3,000-4,200
-3%
Gurgaon-Faridabad Road
3,000-4,000
3,200-4,200
-5%
 

Gurgaon Residential Sector - Scenario

Those who missed out the phenomenal increase in property prices in late nineties and early 2000s may have chance to gain from the new development plan. A new integrated master plan for Gurgaon and Manesar was published on July 11, 2006 by Haryana Urban Development Authority (HUDA). The Haryana government has planned 58 new sectors under Gurgaon Master Plan 2021 and foresees the total population touching the 37-lakh mark (Our estimates though indicate that population of Gurgaon would be around 45 Lakh by 2021) in 12 more years. Whereas the old master plan encompassed an area of 9,881 hectares, the new one covers 33,726 hectares (3.4 times the previous area). It is heartening to see that HUDA is planning infrastructure and facilities for the future albeit for a lesser number of people. This will again put additional pressure on property prices in the future; hence ironically this may be good news for both investors and buyers. People can look forward to another annual 8-10% annual price appreciation of real estate properties (land) in these new areas for the next 10 years.

See Also: Buy Property in Wifes Name

Gurgaon Property Rates Are High

Presently, the price of built-up property in Gurgaon is around Rs 6,000 per sq ft in a super-premium project like Sahara Grace on MG Road. In DLF Phase V, the price in apartments like Carlton and Wellington is around Rs 3,900 per sq ft. Rates fall as you go southward to Sohna Road, where the prevailing rate is Rs 2,700-2,800 per sq ft.

For plots, the price ranges from Rs 25,000-60,000 per sq yd. Property prices had increased by at least 25 per cent per annum between 2000 and 2007. However, in the last one year due to US sub-prime crisis, we saw significant correction in the price of plots and apartments - to the extent of 20-30%. Also, deals are not taking place at above Rs 50,000 per sq yd or for Rs. 1 crore plus projects. Reasons being speculators are out of market because of stock market crash and higher interest rates. In Gurgaon, investors hold a large percentage of properties compared to genuine buyers. Their percentage is even higher in plots, though they have also put in money in group housing projects that are presently under construction. These investors have suffered a lot due to sudden drop in the transactions of real estate properties.

See Also: BBMP Property Tax

Property Demand And Supply

For buyers, the new master plan means an opportunity to buy property in Gurgaon at moderate prices. Earlier end-users didn’t have many options to purchase property at prices ranging from Rs 2,500-7,000 per sq ft. Now with the coming of the master plan buyers will have more options to buy property of their choice and budget. More availability will definitely result in some moderation in prices. Sectors like 111, 112, 113 and 114 are close to Delhi border and will surely emerge as prime sectors (just as areas around MG Road in present day Gurgaon are regarded as prime). If investors are looking for high-end property that will appreciate rapidly, these are the areas that they should target now.

Several residential sectors have been demarcated in areas between Gurgaon and the industrial sectors of Manesar. Some of these sectors are also close to the area earmarked for Special Economic Zones (SEZ) and to Garhi Harsuru, where Reliance’s SEZ will soon come up. These sectors are 76, 77, 78, 81, 82, 83, 84, 85, 86, 97A, 86P, 88, 92 and 93. Given Reliance’s plan to set up industry over 25,000 acres, and even an airport, these sectors too hold a lot of potential. If you are looking for affordable housing, these are the areas to scout for. A third lot of residential sector has been demarcated near Sohna Road. These are 58, 59, 60, 61, 62, 63, 65, 66, 67, 68, 69 and 70. These sectors are also close to a new road that will connect Sohna Road to Faridabad. The prevailing rate of built-up property in sectors 56 and 57, which is around Rs 2,800-3,100 per sq ft, can be taken as benchmark for prices in these new sectors.

Another factor that will determine pricing in the new sectors is connectivity. Sectors along NH-8, such as 76, 77, 78, 80, 81, 82 and 83 will command good prices. The master plan provides for the construction of a new road from Delhi (Brijwasan) to NH-8. Sectors such as 113, 112, 114, 111, 108, 107, 106, 105, 102, 99 84 and 83, which lie along this road, will command good prices as well.

 

Investors/Buyers Investment Return


Thus, if anyone wants an appreciation of over 200-300% in the next 5-10 years, he or she should invest in these identified areas.

 

Developers Investment Return


For developers, too, the new master plan opens up new opportunities. For the last couple of years, very few group housing projects were being launched in Gurgaon as all the land in the residential zone (called R-zone) of the previous master plan had got exhausted. Hence, many developers moved to tier II cities like Chandigarh, Jaipur, and Ludhiana due to exorbitant prices of land. When builders from the NCR moved out, their investors too moved with them.

Now, a huge area is opening up for development 14,380 hectares for residential, 1,199 hectares for commercial, 7,023 hectares for industrial development, and 1,460 hectares for Special Economic Zones (SEZs). With 35,500 acres becoming available for development, both developers and investors will look forward to moving back to Gurgaon.

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