News: Buyers today can get 60% returns in 2 years-08.01.2017
Buyers today can get 60% returns in 2 years
“We have sold between Rs 2,200-4,375 per sq ft. Now it is retailing at about Rs 5,000 per sq ft. Early buyers got about 250% returns and the last set of buyers too have got about 25-30% returns,” says Ramesh Ranganathan, business head - Residential, North and West, Mahindra Lifespaces.
Dwarka Expressway has come a long way since the year 2009. More buyers will start showing interest in the region. The latest decision of the government to create a 42 m 2-lane Expressway and move away from the pre-decided 150 m Expressway for now has been received with gusto. E Jayashree Kurup, head – Content & Advisory, Magicbricks Bureau says, “….a 2-lane Expressway is better than none at all.” Kurup spoke with Ranganathan on the potential of Dwarka Expressway real estate and its investability.
Why should consumers choose Dwarka Expressway for investment?
Ranganathan shares, “In 2009 we saw Sector 110 as a place close to the existing social infrastructure in Palam Vihar. The land was really close to Palam Vihar and was cheaper than rest of Gurgaon and so we found it economically viable. Since social infrastructure was already in place, we found it easy to sell to people who stayed in Palam Vihar. These people wanted to upgrade to gated communities with club houses and lifestyle features.”
Mahindra Lifespaces sold at launch prices of Rs 2,275 per sq ft in the beginning. “Our buyers were mostly end users. The mix of end users to investors was 80:20. During construction, the ratio changed and finally stabilised at 50:50. Those who exited, did so at the early stages. There were hardly any cancellation after that, only about 2%. Now we have a few cancellations because later buyers are not sure whether prices will go up or not because of the delay in infrastructure. We have sold between Rs 2,200-4,375 per sq ft. Now it is retailing at about Rs 5,000 per sq ft. Early buyers got about 250% returns and the last set of buyers too have got about 25-30% returns,” says Ranganathan.
He said that the early purchasers were predominantly either tenants who used the low values to become owners, or those upgrading from Palam Vihar. This is reflected in the fact that of the over 700 units have been handed possession and 500 families have already moved in.
Buyers and what are they buying
This upgrade of buyers within the complex is a unique feature to this project. Have not seen that in any other project. The appreciation that investors saw in the products that they bought and the fact that larger units come at lower per sq ft cost was responsible for this.
The average demand along the Dwarka Expressway is for 2&3 BHK units of about 1000-1450 sq ft in the below Rs 1 crore per unit category.
On completion of the Dwarka Expressway
Prices will pick up for sure. Today, developed sectors of Gurgaon are retailing for Rs 9,000-10,000 per sq ft. We are at Rs 5,000-6,000. Expect this to go up to Rs 8,000 once the Expressway is complete. The Bijwasan connectivity will definitely increase accessibility to our residents.
The impact once more projects reach completion
It would definitely be positive. Social infrastructure always comes when there is critical mass of residents and once other projects are completed, facilities would be available closer. This includes schools, retail units and social activity will go up.
Key commercial drivers
The fact that there is an Expressway connecting Delhi and Gurgaon with ample planned land for development is a huge driver. Its proximity to the established commercial hub of Udyog Vihar is a plus. The Metro is likely to connect the Dwarka Expressway development and the established Gurgaon city. On the other hand, prices are at least 10% cheaper than the established city. There is already a flyover on the Railway Track, reducing the wait time.
Investment today means …
It is possible to invest today and make more than 60% returns in the next 2-3 years as infrastructure improves.
