Developers say apartments at Rs 2,000-2,500 per sq ft on the cards

Sanjay Kr Singh

Gurgaon, february 11: By making 14,930 hectares available for residential, and 1,404 hectares for commercial development, the new Gurgaon Masterplan is expected to boost real estate development in Gurgaon. Market sources expect the new supply could be good news for the middle-class— apartments at Rs 2,000-2,500 per sq ft in a market where very few are available for less than Rs 2,700 per sq ft.

This could also lead to some price correction in developed areas, say realtors.

Prices in the new sectors being created under the plan will be at least 30-40 per cent lower than in existing sectors, said Pradeep Jain, chairman, Parsvnath Developers. “You can expect the same rate differential between Noida and Gr Noida in Gurgaon and Greater Gurgaon,” he said.

With more land becoming available, he said, developers will start focusing on the middle and lower segments and not only on high-end housing as they have been doing so far.

“Infrastructure will have to be developed fast in the new sectors,” he said. “It will take at least four years before the first project is ready but demand will keep growing. So it’s difficult to see how prices will fall in sectors.”

“Secondary market prices in areas like Gurgaon-Sohna Rd have already seen a correction of about 10 per cent in the last six months. I expect a further correction of 10 per cent as more supply becomes available in the newly demarcated sectors, and as investors exit closer to the date of delivery of projects,” said Rajeev Behl, director, Realtech Group, a developer in Gurgaon. He said sectors near the Golf Course Road and along NH-8 will see hectic development activity in the near future.

According to market sources, DLF, Unitech, Pioneer Urban Land & Infrastructure, Vatika, Raheja, Vipul, Emaar-MGF, and Ambience group are the key players who have “land banks” in the newly demarcated sectors, and could be expected to launch projects in the near future. “We expect to launch four projects within the next two to three months,” said Navin M Raheja, MD, Raheja Developers. The group is planning six projects of about 6,000 apartments in some new sectors.

Developers are cagey about revealing the price band at which they will launch their projects. Market sources, say Raheja’s projects in new sectors like 78 and 88 could be priced around Rs 2,200-2,500 per sq ft at the time of launch.

Prior to the notification of the masterplan, very few new projects were being launched as most of the land available in residential zone of the previous masterplan had exhausted. And whatever was launched was priced at Rs 2,700 per sq ft and above. Most of these were small projects on less than 10-12 acres. “Expect large projects of 100-150 acres to be launched,” said Rajan Ahuja, director, Reality Vertical.

“In sectors situated near Golf Course Road, rates will be high, close to Rs 5,000 per sq ft. A project near Sohna Road would be priced at marginally less than Rs 3,000 per sq ft. It is only in the distant sectors that apartments priced at around Rs 2,000-2,100 per sq ft will be available,” said Ahuja.

End-users will have to be alert and rush in to apply as soon as there’s a project launch. “Since rates will be low in the new sectors, investors will try to corner a large portion of the supply,” said Ahuja.

Moreover, in most prime areas in new sectors, plots are unlikely to be available. “It is only further ahead on Sohna Road (near Badshahpur) that larger township type projects will be launched. The rates of plots in projects along NH-8 will be around Rs 20,000-25,000 per sq yd,” said Bansal of Akal Constructions.

“Rates for group housing in Manesar will be in the range of Rs 2,000-2,200 per sq ft,” he said. “Buyers who prefer buying directly from builders and paying in ‘white’ rather than from the secondary market because they can get loans for such purchases but had in recent times been driven out of the market by the high rates, will be able to buy projects in the new sectors,” said Pradeep Mishra of Zion Consultancy.