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Real Estate » Query Zone

Posted at: Mar 18, 2017, 12:45 AM; last updated: Mar 18, 2017, 12:46 AM (IST)AREA WATCH: DWARKA EXPRESSWAY

Highway gains on slow track

Great prospects

  • Residential projects around Dwarka expressway hold a huge potential. Besides the locational advantage, other developments like Union Cabinet’s approval to transfer 34.87 HA land in Dwarka from Delhi Development Authority (DDA) to LNDO (Land and Development Office) for development of second Diplomatic Enclave in Delhi at Dwarka are also expected to propel demand for housing projects in the NPR region.

Tribune News Service

All is not hunky dory with the demand and supply  equation in the NCR and its micromarkets. On the one hand there are pockets where the supply is inadequate to fulfill the demand,  there are other areas where delays have spoilt the game for the buyers, and on the other hand there are pockets having ample supply as well as demand but in spite of this the market is stagnating and the areas are not becoming habitable. 

While the NCR has oflate become notorious for project delays and non-delivery of residential units, the story is different in the areas surrounding Dwarka Expressway. The area has more than 110 developers and over 150 projects that have close to 97,000 residential units on offer. But in spite of abundant supply the demand for the units is very low. The key reason for this being the hurdles and delays in the completion of the Expressway project over the past eight years. 

Though the work on the  expressway project   was commenced in 2008,  it showed little progress until 2015. There were several issues, including land acquisition, which not only affected the construction of the project but also impacted the proposed real estate development around it. The 27-km long project, which has an 18-km stretch in Gurugram and 9-km in Delhi, got a fresh lease of life through the intervention of Centre and state government. The 16-lane Northern Peripheral road (NPR) that is meant  to improve connectivity between Delhi and Gurugram, has been on a revival spree since the past year. 

In fact, the delay in execution has impacted the developers and buyers equally. While the developers are stuck with a huge inventory pile-up, the buyers have their money stuck in projects that lack proper civic infrastructure besides having connectivity concerns.

As of now about 7,500 units have been delivered here and several others are nearing completion. However, approximately 92,000 buyers, who had collectively invested Rs 58,000 crore, are already ruing the lack of basic amenities in the region like 24/7 water and power supply, proper sewerage and connectivity infrastructure. 

All this is in spite of the efforts made by the Centre as well as state government over the past year to give a boost to the development of this area. Since early-2016, both the Centre and state government have placed great focus on speeding up the construction and completion of the Expressway. As a result of these efforts, 14 km stretch of the Expressway has already been completed, with work going on to make the Gurgaon stretch of NPR motorable by March 31 this year. 

Developers like Experion, Raheja, Atharva, Mahindra Lifespaces have already given possession for their projects. Citing the advantages associated along the Dwarka Expressway many developers, including Tata Housing, Emaar India, Homestead Group, AMB Group, Raheja Group, Godrej Properties, Ramprastha, BPTP, Sobha Developers and M3M also have projects lined up in the area.

Moving on to better times

Haryana Chief Minister Manohar Lal Khattar had directed HUDA to put the project on a fast-track, which resulted in the authority speeding up the allotment of alternative plots to the NPR oustees. But more significantly, the Ministry of Road Transport & Highways accorded National Highway status to  Dwarka Expressway. 

NHAI has already initiated the land acquisition process from Delhi side which will be completed in the next few months. It has issued a notification under the NHAI Act, as it is easier to acquire land under the ambit of this Act. Due to NHAI's involvement, the infrastructure in the area is bound to be state-of-the-art.

According to market watchers these efforts are likely to clear hurdles in the completion of the expressway.

With realty industry going through a corrective phase, and the huge latent possibilities of the Dwarka Expressway property market, they are already eyeing delivery of their projects in 2017-18 to coincide with the opening of the NPR. These developments are likely to spur the economic activity in the region, while also bringing a smile on the faces of the homebuyers and investors.

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