Corridor of growthCorridor Description and Rating

S O H N A M A S T E R P L A N

Areas Included: All sectors under Sohna Master Plan-2031

Fig 1: Map of the corridor

Corridor of growth (COG)02

About the CorridorIntroduction

South of Gurgaon refers to the area which falls under the Development Plan-2031 of Sohna town. The Master Plan area starts approximately at a distance of about 14 km from the intersection of Golf Course Extension Road/Southern Peripheral Road and Sohna Road. The corridor is in the initial stages of development with some developers having launched large and small residential projects here.

Master Plan

The land use plan under the Development Plan-2031 is spread across approximately 14,000 acre. The corridor is divided into 36 sectors of which 18 are dedicated for residential development. The land use plan divides the corridor into two sections - the northern two third portion towards Gurgaon consists mainly of residential sectors while the remaining one third towards south, close to the KMP Expressway, is dedicated for industrial development.

In terms of land area, these residential sectors amount to about 30% or about 4,300 acre of the total land use area under the Development Plan-2031.

The second highest category of land use is for industrial development with a share of 22.07% of the land use or about 3,100 acre. The corridor already has an industrial cluster and more area has been earmarked for industrial use under the Development Plan-2031. This has been done to cater to the requirements for industrial & warehousing space which is likely to arise as the KMP Expressway passes very close to the corridor while the DFC of Indian Railways passes through it.

HSIIDC will be developing a 1,500 acre Industrial Model Township (IMT) spread across six sectors (Sectors 19, 19A, 20, 20A, 21 and 21A) of the corridor which borders the KMP Expressway. This also includes a dedicated area for mega Leather Manufacturing Park. HSIIDC has already acquired 607 acre land for this IMT.

The existing Gurgaon-Sohna-Alwar Road which connects the corridor to Gurgaon is to be widened into a 60-meter road with a 50-meter green-belt on each side. Dividing roads of the sector are planned with a minimum width of 60-meter under the development plan.

Present Status

As per the latest update from the Department of Town & Country Planning (DTCP) of the Haryana Government, total 38 development licenses have been given to various developers. These licenses cover development permission for 804 acre land area covering mainly the residential (98.5%) segment. The balance area is for commercial development.

Licenses issued under the residential segment cover residential group housing, residential plots, projects under Affordable Housing Policy (AHP) of the Haryana Government and one large 100-acre plus township.

Currently, some developers have launched projects in the corridor. These are located mainly in sectors towards the north and which are along the existing Gurgaon-Sohna Road. A couple of projects have been launched in the residential sectors which are towards the industrial half of the corridor.

Development in all these projects is in the initial stages and the hand-over for group housing projects is expected in 2019-2020. Residential plots are likely to be handed over in the next 1.5-2 years.

The base selling price for apartments and builder floors varies as per the payment plan, extent of furnishings provided and location of the project. The price range in the corridor is Rs 3,500-6,300 per sq ft. Units of higher prices come with extensive furnishing and capital goods.

Growth Potential

The corridor derives its growth potential from its position with respect to the southern part of Gurgaon. After the development potential is exhausted in sectors along and off the Golf Course Extension Road in Gurgaon (Sectors 58 to 67A), there is no area for further development in this direction.

In terms of price, the corridor compares favourably with the price levels along the Golf Course Extension and Sohna Road. It is also in tandem with sectors (Sectors 68 to 73) along and off the under-construction stretch of the Southern Peripheral Road (SPR).

The average price level (Rs 8,200 per sq ft) in the Golf Course Extension is almost 50% more than the average price in the corridor (Rs 4,229 per sq ft). Price levels in Sohna Road are about 30% more than in South Gurgaon. The corridor offers good options for those who cannot afford a house in the established areas of the city.

Another advantage the corridor has is that there is existing connectivity with Gurgaon through the Gurgaon-Sohna-Alwar Road. Unlike the

Properties available in the corridor

Sohna Master Plan Area presently offers properties across Rs 20 lakh to Rs 2.5 crore price bracket. However, majority of the

supply is concentrated in the Rs 40-60 lakh budget segment with 45% share. The second

highest share is of Rs 60-80 lakh bracket with about 25%. A healthy percentage of properties are also available in the Rs 20-40 lakh bracket. The main reason for properties being available in the lower budget segment is that unlike

Gurgaon, this corridor has more 2BHK options than 3BHK units. The smaller size of the 2BHK format helps to keep the overall acquisition cost low for buyers. Options of 3BHK are also available in the Rs 40-60 lakh segment as

Overall Connectivity Social Infrastructure Security/Water

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration

Dwarka Expressway, projects in the residential sectors along this road are not dependent on development of the access road.

Further, an alternate 90-meter link road is proposed which will connect the corridor to Gurgaon. This road will originate from Sector 34 of the Sohna Development Plan-2031 and connect with Gurgaon at the sector dividing road of Sectors 63A and 64.

The planned industrial development in the corridor will serve as a growth driver and a pull factor as it creates blue and white collar jobs.

Challenges

Consumers need to consider a development timeframe of 3-5 years before the corridor evolves into an established residential destination. The delivery timeline for apartments is a minimum 3 years; it is safe to add

a buffer of 1 year to this timeline. The development of infrastructure in the corridor like sector roads connecting internal sectors with each other and existing Gurgaon-Sohna Road, water and sewerage network etc by HUDA is also likely to take this much time.

The area lacks in public transport facility. Present connectivity is through state transport/private buses from Gurgaon to Sohna or long route buses which pass through Sohna. Shared autos also ply between Gurgaon and Sohna. Consumers will have to mainly rely on private transport till more dedicated public transport facilities are made available.

The Master Plan has provisions for support amenities like hospitals, schools and colleges but no clear development timelines can be predicted for them. Residents will have to rely on the social infrastructure of

Gurgaon or close to Gurgaon for their requirements.

As with the overall market conditions, price levels in the corridor have been stagnant for some time. Between Sep 2013 and Mar 2016, the average price levels declined by 5%. Price levels are expected to remain stable in the short to medium term.

Outlook

South Gurgaon offers residential options for those who intend to work in Gurgaon but cannot afford to purchase a house due to high overall capital value in the city. While the distance between Gurgaon and the corridor may seem large today, it is large only in a relative sense. Once the southern sectors of Gurgaon are developed and the corridor sees some development, this perception will most likely fade away.

Corridor of growth (COG)03

Corridor of growth (COG)04

these are available in different sizes. Smaller sized units are in the lower budget segments. About 52% supply of 3BHK options is in the Rs 60 lakh to Rs 1 crore segment. A small percentage of supply is also available in the 1BHK format. This is a departure from the general practice in Gurgaon where smaller format units are not available. Options of

1BHK are available in the Rs 20-40 lakh budget segment.

The corridor also has projects under the Affordable Housing Policy of Haryana Government. This policy makes smaller sized 2 and 3BHK units with corresponding low price (fixed by state government) available to consumers.

Sales Price Covered Area ( Lacs) (Sq.ft)

1 BHK 13-30 520-700

2 BHK 20-60 920-1300

3 BHK 50-90 1400-1900

4 and above 75-150 2100-2500

Table 1: Sizes and prices of flats available for various room configurations

Best bedroom configurations to buy Preferred buying and renting options

Buying Renting Total (BHKs) Total (BHKs)

1 BHK 4% 29%

2 BHK 58% 43%

3 BHK 33% 28%

4 and Above 5% 0%

Table 2: Demand distribution for buying and renting Consumers prefer the 2BHK format in the corridor. About 58% consumers are looking for 2BHK format in the Rs 20-40

lakh bracket followed by 31% demand in the Rs 40-60 lakh budget segment. The 3BHK is the second most preferred format with demand across different budget segments, depending upon preferred size of the unit.

Bulk (55%) of the demand is in the Rs 60-80 lakh segment. These 3BHK units are of bigger sizes and hence, higher cost. The Rs 40-60 lakh range also has a healthy 32% share of demand for 3BHK units. These are of relatively smaller size with about 15% less saleable area as compared to the 3BHK units preferred in the higher budget segments.

Price changes and future prospects Historic Price movement Table 3: Historical Price changes

The price level in Sohna has been flat for last couple of years. Sohna has been projected as extension of Gurgaon and

is being marketed as ‘South Gurgaon’. It was expected that lower price level in Sohna and its proximity to Gurgaon will drive sales.

However, there is still some perception issue amongst buyers about its location. Also, the development in the projects is in very early stages. After witnessing project delays all around, consumers are wary about buying in under-construction projects and in areas where infrastructure development is still far away in future. The price level has consequently stayed at almost same level as few years back.

Fig 7: Historical Price changes of corridor

6 monthly change Yearly change

-1% 1%

Master Plan

Fig 9: Land use of various sectors in the corridor

Corridor of growth (COG)05

Almost 14,000 acre land has been earmarked for different uses in the Master Plan. Of this, about 30% is

reserved for residential development. Till December 2015, the Haryana Government had granted 38 licenses to various developers for residential and commercial development

in sectors under the Master Plan. More than 98% of these licenses are for residential development. Haryana State Industrial Infrastructure Development Corporation (HSIIDC) has acquired more than 600 acre land for development of an Industrial Model Township (IMT) in some sectors of Sohna.

The total area envisaged for IMT Sohna is about 1500 acre. Alignment of the Dedicated Freight Corridor (DFC) passes through the Master Plan area of the corridor. A Transport Nagar adjacent to it in Sector 27 has also been planned. It will be spread over 244 acre.

RESIDENTIAL COMMERCIAL PUBLIC AND SEMI-PUBLIC INDUSTRIAL OPEN SPACES

Infrastructure UpdatesKMP Expressway :The Kundli-Manesar-Palwal (KMP) Expressway passes through the southern side of the town. The proposed access point of KMP Expressway from Sohna Town is situated approximately at a distance of 8-km.

The Manesar to Palwal section of the KMP Expressway has become operational

Affordable Housing Policy: Nine development licenses have been issued under

the Haryana Affordable Housing Policy (AHP) in the corridor. These projects will provide affordable options to consumers.

South Gurgaon: A great realty destination choice

South of Gurgaon has a healthy realty market. With the development of new realty projects, the population of Greater Gurgaon is expected to grow by nearly 10 times, by 2031. Considering these developments, it is the best time to enter this market. As per development plan, Greater Gurgaon’s realty market will be an independent market unaffected by price movements and absorption of projects located along Dwarka-Gurgaon Expressway or Golf Course Extension Road. The Greater Gurgaon market will cater to the affordable segment. A proof of this lies in the high number of transactions taking place in this area.

n Source: The Times of India

11 builders to develop ‘South of Gurgaon’

Builders are making joint efforts to develop Sohna as an upcoming destination, called `South of Gurgaon’. Delay in the development of infrastructure in areas like Dwarka Expressway and New Gurgaon has affected buyers and builders alike. On Dwarka Expressway, for instance, some projects are complete but possession cannot be given as the basic infrastructure -like main road, sector roads, and sewer lines ¬ is not in place. Licenses have already been given to build around 65,000 houses on 700 acres of land. The number of houses that can be built per acre using the same permitted area is higher in South of Gurgaon as against that in Gurgaon. This will enable them build smaller houses.

n Source: The Times of India

GBCI establishes South East Asia base in Gurgaon

Green Business Certification Inc. (GBCI), the premier organization independently recognizing excellence in green business industry performance and practice globally, announced its incorporation in India. The new GBCI office, located in Gurgaon, will serve to facilitate the global growth of GBCI and its sustainability programs. By

incorporating GBCI in India, the company will be able to continue their efforts to green the built environment in India and across the globe, with new added support and on the ground capabilities. Leveraging the work done by Gopalkrishnan, USGBC’s regional director for market development in India, GBCI India will act as the South East Asia office of GBCI.

n Source: Magicbricks Bureau

Gurgaon is growing and so are its challenges

What is it like to have a home in Gurgaon? Widely believed, the kind of feel Gurgaon lends is unparalleled. Be it job opportunities, shopping malls in the vicinity or a cosmopolitan neighbourhood Gurgaon is unbeatable. On one hand is the ever-increasing floating population. On the other hand is the challenge of accommodating any plans of developing infrastructure in an already occupied area. Authorities have realized that by the time a two-lane road gets sanctioned and work begins, the need arises for a four lane road in the same spot. With the kind of foresightedness that the corporation needs to work with, certain plans that came to the fore were indeed futuristic.

n Source: Magicbricks Bureau

Raheja’s Maheshwara to redefine Gurgaon market

Raheja Developers Ltd announced the launch of “Maheshwara” in South Gurgaon. The project will redefine the real estate market owing to the affordable prices while all the luxury accompaniments of Raheja projects are kept intact. A 2-BHK apartment (1080sq.ft.) starts at an all inclusive price of Rs 34.63 lakh @2975 per sq.ft on super area which is almost 20 % lower than the prevailing market price with a guarantee of quality. There are no extra charges for PLC, parking reservation charges & club membership. There is a guarantee of no charge in case the super area increases in future.

n Source: Magicbricks Bureau

IN NEWS

Corridor of growth (COG)06

MOST POPULAR PROJECT in South Gurgaonhttp://magicbricks.com/investment-hotspots/gurgaon/south-gurgaon/

KEY DEVELOPERS in South Gurgaonhttp://magicbricks.com/investment-hotspots/gurgaon/south-gurgaon/

PROJECT SUMMARY BY POSSESSION STATUS in South Gurgaonhttp://magicbricks.com/investment-hotspots/gurgaon/south-gurgaon/

PROJECT SUMMARY BY BUDGET in South Gurgaonhttp://magicbricks.com/investment-hotspots/gurgaon/south-gurgaon/

CONTACT USl Join our discussion forum at - openhouse.magicbricks.com

l For business enquiries - sales@magicbricks.com

D I S C L A I M E R

Every effort has been made to make this report as complete and accurate as possible. MagicBricks accepts no responsibility for inaccuracies in the information/data contained in this report. It shall have neither liability nor responsibility to any person or entity with respect to any loss or

damage caused, or alleged to have been caused, directly or indirectly, by the information contained in this report. The information/data in this report is subject to change from time to time due to market condition.