A real estate hotspot: Everybody wants a 'piece' on Dwarka Expressway

Dwarka Expressway, a 29.1-kilometre (km)-long 16-lane stretch between Shiv Murti in Delhi and Kherki Daula in Gurugram, has become a real estate hotspot, attracting top developers from all over the country announcing their projects in the area.

Adani Realty has announced its luxury project Oyster Grande in Gurugram’s Sector 102-102A. Tata Realty and Infrastructure Ltd has also launched Tata La Vida, near Sector 113 in Gurugram. Sobha is coming up with Sobha City in Gurugram’s sector 108 as a ready-to-move housing society. Godrej Properties is also coming up with several projects on the expressway, including Godrej Meridien in Gurugram Sector 106 with seven iconic luxury residential towers.

Dwarka Expressway, also known as the Northern Peripheral Road (NPR), was a part of the Development Plan 2031 for the Gurgaon Manesar Urban Complex (GMUC). It is being developed mainly as an alternative route to the existing NH-8.

In 2006, the Haryana Urban Development Authority, now known as the Haryana Shahari Vikas Pradhikaran, planned an 18-km stretch between Kherki Dhaula and Najafgarh Road as an alternative to NH-48.

Initially known as the Northern Peripheral Road (NPR), this project spurred several real estate ventures in the early 2010s. However, by 2014, only 16.6 km of the project had been constructed, with work on critical sections at Kherki Dhaula and Bajghera halted due to legal disputes. In 2017, the project was transferred to the National Highways Authority of India. It decided to extend the Dwarka Expressway to Shiv Murti near Mahipalpur in Delhi.

Godrej Properties said that the expressway has “dramatically” enhanced connectivity between Delhi and Gurugram, making it an attractive destination for both homebuyers and investors.

“The expressway’s strategic location and proximity to commercial hubs have fuelled a substantial rise in real estate demand, with residential clusters emerging rapidly along its stretch,” said Geetika Trehan, chief executive officer (CEO)-North Zone, Godrej Properties Ltd.

Krisumi Corporation, which is developing the 33.38 acre Krisumi City in Sector 36A, Gurugram, said that expressway’s “strategic connectivity” and “robust commercial potential” make it an ideal location for real estate ventures.

According to data by real estate consultancy Anarock, Dwarka Expressway had the eight-highest supply of homes between 2019 and June 2024 at 20,250 units, among top micro markets.  Despite this, higher demand has led to steeper price appreciation. The expressway ranked fourth in terms of price appreciation during the same period.

In June 2024, the average residential prices in the region rose 79 per cent to over Rs 9,600 per sq ft from Rs 5,359 per sq ft in 2019.

Signature Global (India) Ltd, which has 12 projects on the expressway, said that it has been delivering “some of the best returns” for developers. Typically known for its affordable projects, Signature Global also recently launched a premium project on the expressway.

“In March 2024, we entered into the premium segment with the launch of our first premium housing project, DE LUXE-DXP, located at Sector 37D, Dwarka Expressway, Gurugram. The project sold out within days of its launch, achieving record-breaking pre-sales of Rs 3,600 crore,” said  Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.

It currently has a land bank of around 6 million sq ft in the region.

Corroborating Aggarwal’s optimism, Shalin Raina, Managing Director, Residential Services, Cushman & Wakefield said, “Earlier, there was an inventory overhang, which has been slowly coming down as demand outstripped supply in the year 2023.”

Raina said that in the previous 10 quarters, the sub-market has seen nearly 200 acres of land deals, joint developments, and joint ventures.

Gurugram-based MRG Group, which has also launched a new project on the expressway, said that it offers an “ideal location...with exceptional connectivity, world-class infrastructure, and increasing demand for luxury real estate”. Not only on the expressway, the project has also increased interest in nearby areas.

According to the Gurgaon–Manesar Urban Master Plan 2031, an inter-state bus terminal has been proposed in Kherki Daula, at the intersection of NH-48 and Dwarka Expressway.

The Haryana government has also begun work on Phase 1 of the Global City project, a mixed land use project in Gurugram on 1,000 acre land along the Dwarka Expressway. It will consist of residential and commercial spaces with modern infrastructure and utilities. It is being developed across parts of Sectors 36, 36B, 37, and 37B.

Recently, real estate developer Omaxe also launched a commercial project called Omaxe State in Dwarka’s Sector 19B with Delhi Development Authority, near the expressway. Spread across 50 acre, the project will have an international cricket stadium, a football stadium, retail spaces, food courts, 5-star hotel, and bar and pubs. In an interaction with Business Standard last month, Mohit Goel, Managing Director (MD) at Omaxe Ltd said that the space will have the “first AC high-street of the country”.

For the coming years, the industry seems optimistic on their bet on the expressway.

"With a healthy demand-supply equilibrium and upcoming infra around the expressway like the Global City project, RRTS corridor and the 28.5km elevated metro corridor, the Dwarka Expressway micro-market is poised to grow and expand exponentially in the coming 2-3 years," said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.

"Given the consistent demand and leading capital appreciation, we can reasonably anticipate a steady stream of new launches and high sales volumes," added Raina.  

Omaxe's Goel said that he is very "bullish" on this micro market.

"I see the same kind of thing happening to Dwarka Expressway as it happened to NH-8 earlier," he said. "The future is super bright. Whatever supply comes there, it will be absorbed super easily."