Townships are the way forward
Sticking to our earlier theme that not everything is bad in real estate.
We believe large townships, over 100 acres, will help address the various needs of consumers and developers alike. The pre 2008 frenzy to acquire large tracts of lands fizzled out after the Lehman crisis because of capital constraints. It hurt the development plans of several such townships which were planned as there was little capital to execute such massive projects. Continue reading “The Benefits Of Living In Townships”
It is now very apparent that Real Estate sector is suffering a massive slow down for two reasons –
1. Supply increased substantially in the years 2010-13
2. Affordability decreased as prices grew faster than consumer incomes Continue reading “Understanding The Bank Subvention Scheme”
Dwarka Expressway Status
Conceived in the year 2007 as part of the revised Masterplan of Gurgaon the 8-lane highway is supposed to be an alternate route to reach Delhi bypassing Gurgaon. The project was to be completed before 2010 Commonwealth Games however it remains in limbo. Disputes around land acquisition pushed back the construction of Dwarka Expressway which remains complete now in patches. We have seen recent improvements in connectivity, however no 2-3 km patch is without another diversion you encounter on this road.
It is estimated that over 40,000 residential units are under construction along this road. The region was being marketed as an affordable option to the now costlier areas such as Golf Course Road and Sohna Road. More than the residential units the area is supposed to come up as a business and retail hub probably self sufficient in all regards.
The prices were being benchmarked to Gurgaon areas in areas along the NH8 and to Dwarka in Delhi along the IGI T3 Airport. Our primary research tells us that plight of many projects in this region isnt great, even if a project is handed over it can’t be inhabited. Infrastructure activities such as water, sewage etc. are still coming up. The road development which commenced in 2011 is still underway.
The real estate prices which rose sharply between 2009-13 have now stagnated. Newer launches are happening at lower prices or through finance schemes.
With road development now picking up may be the infrastructure work will also gain pace. However, current supply in the market exceeds the demand and prices may not be in a hurry to rise in near future.
The fate of Dwarka Expressway project and eventual hype around it is just an example of project delays that seem to have become norm across India. However, good infrastructure is a necessity.