India’s increasing reputation as the fastest-growing major economy and reduction in the severity of the Covid-19 pandemic have put the focus back on real estate as an evergreen asset class for investment. This is reflected in the growing demand for residential as well as commercial properties from buyers and investors. The trend is more noticeable in Gurugram and its emerging markets that are fast evolving as the hottest real estate destinations in the NCR.
The opening of businesses after the Covid-19 pandemic has led to an impressive growth graph of realty markets in Gurugram and its emerging micro-markets like New Gurgaon, South Gurgaon, which is popular as Sohna Road, Golf Course Road, Dwarka Expressway (Northern Peripheral Road), Golf Course Extension Road and the Southern Peripheral Road (SPR). There is an increase in demand for residential and commercial properties in these markets. Besides, various brands and investors are eyeing the Grade A retail spaces and looking to establish their presence.
Here’s a look at the trends and reasons that are driving the interest of investors and buyers in these markets.
High demand for luxury, premium properties
The sale of premium and luxury homes has picked up steadily after the pandemic. Not only the number of housing units sold has increased post-pandemic, but the demand for premium properties has also gone up in Gurugram. As many as 15,590 housing units were sold in Gurugram last year, of these approximately 30% of homes were priced above Rs 80 lakh. In the pre-pandemic year 2019, luxury homes priced above Rs 80 lakh had only a 24% share in the total sale of 13,250 units, according to Anarock data.
Jump in housing sales
In Q1 2022, the supply of new housing units in Gurugram jumped approximately 158% to 7890 as compared to the same period of the previous year. The supply of new units in Q1 2021 was just 3060. According to the Anarock data, Gurugram had an 85% share in the supply of new housing units in the entire Delhi-NCR region in Q1 2022.
First choice for modern home-seekers
The micro-markets of Gurugram have grabbed the attention of home-seekers aspiring for a modern lifestyle. Of these, New Gurgaon is emerging as the first choice for young professionals as the area is surrounded by a great social infrastructure of schools, hospitals, retail space, and commercial establishments.
The new nerve centre of business in NCR
Located strategically between Gurugram and the auto hub of Manesar, the micro-markets of Gurugram offer a wide range of choices to professionals looking to invest in commercial property. The area is bustling with business and the prevalence of big industries. The vibrant micro-markets of Gurugram like New Gurgaon are bustling with real estate and commercial activities, rapidly transforming into the nerve centre of business in the region.
Gurugram is already one of the IT hubs of India, housing over 250 Fortune 500 companies, making it quite popular among young professionals. Even Ultra-high-net-worth individuals (UHNWIs), ex-pats, corporate honchos, and NRIs are looking for upscale residential spaces like the ones in Gurugram. With older areas of the city nearing saturation, real estate activities have spiked in the micro markets. The rapid rise of office spaces in the region has invariably boosted social infrastructure and other commercial activities like restaurants and food outlets, recreation spaces, and more.
New hub for startups
According to a report by international property consulting company Saville, a large number of startups, including edtech and fintech companies, have made Gurugram’s micro-markets like the Golf Course Extension Road (GCER) and SPR hub of their operations due to cost-effective low rentals. Proactive policy initiatives like New Integrated Licensing Policy (NILP-2015) have also helped unlock the development potential in various parts of the city.
Shining spot of growing retail mix
The retail sector has rebounded post-pandemic and has marked the largest acquisition of an operational retail asset in India in the last few years. The newly-developed sectors in Gurugram are witnessing significant growth in retail real estate. Various commercial activities are booming in the major sectors in New Gurugram and retail brands are eyeing their establishment in the region. Considering the thrust in the housing and office space demands in new micro-markets of Gurugram, the growth prospects of the retail segment are very promising.
Transport connectivity boost
The commissioning of the Delhi-Mumbai Industrial Corridor, Dedicated Freight Corridor, and the three highways – NH48, Kundli-Manesar-Palwal Expressway, and Dwarka Expressway – are giving the micro-markets of Gurugram an edge over other regions in Delhi-NCR. Moreover, the proposed metro link along Dwarka Expressway, an extension of Gurugram metro, shifting of Kherki Daula toll, and connectivity with SPR are expected to take the growth of real estate activities in the region to a new high. The recent announcement by the GMDA to construct a road further facilitates ease for the residents of new sectors in connectivity to the Dwarka Expressway. A 15 km-long service road is proposed to be constructed on either side from the intersection of the Central Peripheral Road (CPR) and the Dwarka Expressway to the Delhi-Haryana border.