Golf Course Extension Road - Gurgaon
Development
of social and physical infrastructure, enhanced connectivity and robust supply
of office spaces, could make NCR’s Golf Course Extension Road, a prime
residential destination.
In its
Residential Investment Advisory Report 2016, real estate consultancy Knight
Frank India has identified Golf Course Extension Road as one of the
destinations that has the potential to offer the highest price appreciation in
the National Capital Region (NCR), over the next five years.
Connectivity
The six-lane
Golf Course Extension Road, connects to Gurgaon through the Golf Course Road
and Sohna Road and also offers connectivity to the Indira Gandhi International
Airport. Soon, the Golf Course Extension Road will also be connected to the
Gurgaon-Faridabad Road. Work on the metro rail line up to Sector 55, is
underway and is expected to be completed by September 2016. The existing road,
from the Delhi-Gurgaon border on NH-8 to Sector 55-56, is also being widened
into a 16-lane expressway. This project is expected to be completed by the end
of March 2016. This 8.3-km expressway will further reduce travel time from the
Golf Course Extension Road to NH-8. Cyber City, the main employment hub of
Gurgaon, is barely six to seven kilometres from the Golf Course Extension Road.
Moreover,
Golf Course Extension Road is close to well-established sectors of Gurgaon,
such as 48, 49, 54, 55, 56 and 57. Social amenities, like malls, schools and
hospitals, are available within a radius of two to three kilometres. Due to all
these factors, the area is likely to attract a lot of end-users in the near
future.
Potential for appreciation
The price of
apartments on Golf Course Extension Road ranges from Rs 6,800 to 9,800 per sq
ft. The average price is Rs 8,300 per sq ft. According to Knight Frank India,
the minimum price is expected to touch Rs 9,700 per sq ft, while the maximum
price could go up to Rs 13,900 per sq ft, by 2020. The average price may
increase to Rs 11,800 per sq ft, which would amount to an appreciation of 42%
over the next five years, yielding a compounded annual return of 7.3%. Mudassir
Zaidi, Knight Frank India’s national director – residential agency, attributes
this price rise to Golf Course Extension Road’s connectivity to the established
commercial corridors of Golf Course Road and Sohna Road. “There will be an
upsurge in demand, due to the completion of projects, establishment of social
and physical infrastructure, and more office space getting constructed,” he
explains.
Besides
end-users, investors may also be attracted to the area, even though prices are
already quite high. According to Rajan Ahuja, director of Realty and Verticals,
“Amid the ongoing slowdown in Gurgaon’s real estate market, investors can no
longer afford to invest in areas that are in a nascent stage of development,
where it will take another four to five years for infrastructure to be laid out
and projects to be completed. Consequently, they should focus on areas that are
expected to see a steady influx of end-users, where projects are ready or
nearing completion and the infrastructure is in place.” From this perspective,
an investor can earn good rental returns from projects in the Golf Course
Extension Road, and also see the price of his property appreciate steadily over
the next few years, he concludes.
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