Dwarka Expressway has emerged as a key residential hub in Gurugram, with plans underway to construct upscale living spaces along with commercial and retail options.
On March 11, Prime Minister Narendra Modi officially inaugurated the Haryana segment of the Dwarka Expressway, designed to enhance traffic flow and reduce congestion on NH-48 linking Delhi and Gurugram. According to real estate experts, this expressway is transforming Gurugram into a pivotal residential area. The new infrastructure not only promises an influx of upscale residences but also commercial properties that are poised to rise in value while connecting seamlessly with the Gurugram Bypass and Delhi's IGI Airport, thereby addressing traffic woes.
The project comprises two critical packages: the 10.2-km section from Delhi-Haryana Border to Basil Rail-over-Bridge (ROB) and another 8.7-km from Basai ROB to Kherki Daula, at an estimated cost of Rs 4,100 crore.
Emergence of Residential Clusters
With enhanced access thanks to the Dwarka Expressway, residential clusters are sprouting up in the vicinity. JLL's analysis indicates that this region has taken on a developmental priority, catalyzing a significant rise in housing activity. In 2023, a staggering 12,409 residential units were sold here, accounting for 66% of all sales in Gurugram, marking a 67% increase in unit sales compared to 2022, with total sales value reaching an impressive Rs 25,000 crore. Notably, 97% of these units were in various stages of construction at the time of sale, signaling increasing consumer trust in these projects as many are reaching timely completion.
The Dwarka Expressway-New Gurgaon cluster has firmly established itself as the new upscale launch point in Delhi NCR, boasting 11,270 dwelling units, which represent 69% of all developments in Gurugram for 2023. In fact, 4,231 additional units hit the market in 2022—demonstrating an astounding 166% growth compared to earlier launches.
High-end projects are particularly in vogue, with up to 38% of recent launches priced at a minimum of Rs 2.5 crore. Some projects experienced immediate sales that were completed within days of their debut, reflecting strong demand, as stated by Samantak Das, Chief Economist and Head of Research at REIS, India, JLL.
Over Rs 3,100 crore has been invested by developers in securing approximately 175 acres of land within this sub-market across recent years. Ritesh Mehta, Senior Director and Head (North and West), Residential Services and Developer Initiative, JLL India, indicated there is also significant collaboration through Joint Development Agreements (JDAs) and Joint Ventures (JVs) covering over 30 acres to spearhead new projects.
In 2023, this market segment alone saw the initiation of 11,000 housing units, with currently 29,742 units under construction, and a staggering 13,476 (approximately 45%) expected to be delivered by 2024. The average capital value in this corridor surged by 15% since 2022, reaching Rs 10,000 per square foot, and further price escalations are anticipated as demand drives new phases of existing projects.
"Despite earlier delays on several projects, the notable improvements in local infrastructure are set to elevate the real estate landscape significantly. Meanwhile, over 10,515 housing units are gearing up for occupancy soon," remarked Santosh Kumar, vice chairman of ANAROCK Group.
Impact on Pricing and Demand
The burgeoning demand from end-users is propelled by improved connectivity, especially from the Dwarka area and other locales in West Delhi. Buyers are keen on modern apartments equipped with amenities that enhance living standards, such as allocated parking spaces.
Historical sales data indicates that since 2013, about 53,030 units with varied price ranges were introduced here, where prices surged from Rs 5,890 per square foot in 2020 to roughly Rs 8,300 in 2023—an impressive growth of 41%. The commencement of the expressway is likely to continue this upward trend in valuations.
The expressway is set to revolutionize connectivity between Delhi and Gurugram, minimizing travel time considerably while passing through vital regions like Harsaru, Pataudi Road, and various sectors in Gurugram, stimulating demand for real estate in these previously underserved areas.
"This transformative link connecting Indira Gandhi International Airport to Dwarka Sector 21 showcases the government’s commitment to improving citizens' quality of life while fostering local development," stated Mudassir Zaidi, Executive Director– North at Knight Frank India.
According to Gundeep, CEO of Simplease, the value of properties along the Dwarka Expressway has witnessed an uptrend. Anticipating higher costs for major developer launches surpassing Rs 20,000 per square foot.
In recent months, real estate prices in the region have surged due to demand emanating from Delhi. Many prospective buyers from Dwarka and specific parts of South Delhi are considering relocating, attracted by the lifestyle and amenities of local residential projects.
Real estate expert Pradeep Mishra highlighted that the expressway's inauguration will make property acquisition more accessible, engaging more end-users to invest in the area.
Historical Pricing Trends
Mishra has been part of property transactions since 2011 and noted that several developments launched along the corridor in 2011 had prices ranging between Rs 2,500 and Rs 2,700 per square foot. This figure appreciated to Rs 3,500 per square foot by 2012, and several new entrants offered projects priced from Rs 6,000 to Rs 7,000 by late 2013. Following the COVID-19 pandemic, these prices staggered to Rs 7,500 per square foot with a focus on dwindling unsold inventory.
The announcement of the expressway's impending opening has influenced real estate prices from 2022 to 2023, with almost all new projects starting prices around Rs 10,000 per square foot; future releases, primarily in luxury segments, are projected to range between Rs 18,000 to Rs 19,000 per square foot. In the secondary market, housing units now typically sell between Rs 13,000 and Rs 15,000 per square foot.
"Recently, we’ve seen increased engagement from buyers in West and South Delhi interested in transitioning to apartment complexes offering modern features and dedicated parking. Non-resident Indians are also stepping into investment opportunities along the Dwarka Expressway," he affirmed.
As per Vineet Chellani, CEO and founder of Asset Deals, market value has climbed significantly over the past four years, with many buyers now purchasing modern apartments after selling properties in South and West Delhi. Increased property values are anticipated, paving the way for future commercial prospects as well.
According to CBRE India, premium and luxury segments have felt a notable price surge, with luxury project valuations (over Rs 4 crore) increasing from 12% in 2022 to 26% in 2023, while premium segments (between Rs 2 crore and Rs 4 crore) surged by 19% and 34%, respectively, in the same timeframe. The mid-range segment (Rs 45 lakh to Rs 1 crore) also faced a 10% to 12% rise during these years.
Rental Insights
Renting an apartment near the Dwarka Expressway can range between Rs 30,000 to Rs 40,000 monthly for a 3BHK in a gated community, with 2 BHK units slightly lower. Four-bedroom units generally rent between Rs 45,000 and Rs 50,000, while villa rentals can vary from Rs 1 lakh to Rs 1.5 lakh, with some studio options also available, according to Mishra.
Inventory Dynamics
With the completion of the Dwarka Expressway, the real estate market in the area is set for a transformative shift, as the ten-year wait has catalyzed a construction surge, particularly connecting Delhi to Gurugram.
Anshuman Magazine, chairman, and CEO of CBRE’s India, South-East Asia, Middle East & Africa, stated, "Inventory levels are dwindling—falling from a notable 25-30% years ago to a mere 7-8% now, especially with the expressway now operational."
Future Outlook
With the expressway lightening up, it promises to benefit all stakeholders, positively influencing various asset classes. Future developments include an infusion of retail and commercial venues, as per JLL's analysis, setting the stage for increased premium residential properties and commercial expansions. In response to demand, developers will continue acquiring land for new residential projects to keep pace with projected growth in all pricing tiers.