Real Estate Gurgaon

Even as the MCD's sealing drive and the protests and politics it has spawned continue to keep the capital on edge, the Punjab and Haryana High court has come up with even a more stringent order to curb unauthorised commercial activities in residential areas in neighbouring Haryana.
In its order dated September 15, the high court has directed that the unauthorised commercial activities being carried out in residential premises in Haryana should be stopped within a period of one week, by September 29, or sewerage, water, electricity connection to the defaulter allottees must be discontinued.
"The areas where unauthorised commercial activities in residential localities will be banned are: urban estates of HUDA, housing board colonies, areas developed by licensed colonisers and areas under the municipal council."
There are over 794 unauthorised properties in new Gurgaon. About 352 allottees figure in the list of defaulters in HUDA sectors.

Source: http://www.indiatimes.com/

The IT-ITeS industry is single handedly driving the real estate boom in India. According to realty experts, IT-BPO companies account for 80% of total commercial space absorption in India. Currently about 130 million square feet is acquired by IT-ITeS companies and the demad by them is expected to shoot up to 500 million sq ft by 2010. This year, eight out of the top 10 property transactions were in the IT-ITeS sector.
Largest property transactions in the first two quarters of 2006 include Lucent (350,000 sq ft-Bangalore), TCS (300,000 sq ft-Chennai), Satyam (200,000 sq ft-Chennai), Wipro (154,000 sq ft-Chennai) and CSC (125,500 sq ft-Gurgaon). In the National Capital Region of Delhi, IT ITeS accounts for 75% space acquisition. In 2005, about 20 million of the 25 million sq ft office space acquired, belonged to the IT-ITeS companies.

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DLF Ltd is in the process of doubling its land holdings after putting off its public issue.
The real estate company is working on a second integrated township near the existing DLF City in Gurgaon, with an estimated investment of Rs 30,000 crore.
In realty circles, the new township is being referred to as DLF City II. It is in accordance with the new master plan for Gurgaon, and will be as large as the existing DLF City spread over 3,000 acres. DLF’s existing township took off in phases — as DLF Phase I, Phase II and so on till Phase V.
The new township is expected to come up in five phases. It, too, will include plots, luxury and middle-income homes, apartments, malls, and offices. Also, with DLF foraying into hospitality, hotels are also likely in the new township
Property prices have been climbing in the last 12-15 months, which means DLF mostly paid less than what it will have to shell out today.

Source:http://www.business-standard.com

Are prices stable in Gurgaon now?
The price on Sohna Road varies from Rs 2,500-4,000 per sq ft, the exact price depending on the specifications offered by the builder. For the past three to four months, prices have been stable. Over the past 18 months prices have doubled. Now it’s time for consolidation.

Has there been a price correction here?
No.

What will be the impact of all the new supply of land coming in after the new Gurgaon masterplan is notified?
I think property prices will rise at a more moderate rate. If earlier prices were rising at 30-40 per cent, now they will rise at 10-12 per cent.

What’s the demand-supply equation for office space in Gurgaon?
Demand has risen, while supply has failed to keep pace. So there is a short-term mismatch that will last for one-and-a-half to two years. Rental rate (including maintenance) has risen to Rs 50 per sq ft per month on Golf Course Road. The rental return is about 7 per cent of capital value.

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