Mint Explainer: Will the Dwarka Expressway change the face of Gurugram?
- The Dwarka Expressway, connecting Delhi and Gurugram, is set to transform the region into a burgeoning real estate hub while promising reduced travel times
Bengaluru: Prime Minister Narendra Modi inaugurated the nearly 19-km long Haryana segment of the long-awaited Dwarka Expressway on Monday, which will boost connectivity between Gurugram and Delhi, reducing travel time to less than 30 minutes, as per various estimates. This development is set to spur housing, social infrastructure, and the ambitious 'Global City' project, potentially transforming the area into a new real estate corridor. Mint delves into the details:
Why is the Dwarka Expressway significant?
Once fully operational, the Dwarka Expressway, spanning 29 km, will link Dwarka in Delhi with Kherki Daula in Gurugram. With the Haryana portion now complete and the Delhi section nearing completion, this eight-lane, access-controlled expressway promises to significantly reduce travel times, by as much as 30 minutes for commuters currently reliant on National Highway-48. Initiated nearly 18 years ago by the Haryana government, the project, later taken over by the National Highways Authority of India (NHAI), has overcome numerous challenges, including land acquisition disputes resolved in 2018. Originally planned as an 18-km route to enhance connectivity between Kherki Daula and Najafgarh Road, the project's scope has since expanded. Additionally, there are now plans to improve peripheral and service roads alongside the expressway.
A new real estate hotspot
Dwarka Expressway has quickly become a prime real estate destination, with residential property prices in the vicinity rising the most among top cities post-pandemic.
According to property consultant JLL India, in 2023, around 12,409 housing units were sold in the Dwarka Expressway-New Gurugram sub-market, accounting for 66% of Gurugram's total housing sales. Sales jumped 67% from previous year.
This surge in real estate activity follows the pattern of rising interest in areas nearing completion of significant infrastructure projects. Around 175 acres of land across 17 separate deals valued at over ₹3,100 crore have been acquired by real estate developers since 2022 in the area, JLL said.
According to Anarock Property Consultants, the area's robust development and high demand, coupled with ongoing infrastructure improvements, are attracting both end-users and investors. A lot of projects are already in various stages of development, and there is huge potential for future development. Retail and commercial office developments are also expected to pick up in the future.
What’s the government’s roadmap on building expressways?
Roughly 4,000 km of Centre-funded, NHAI expressways are currently operational. There are state-controlled highways, too.
The ministry of road transport and highways has ambitious plans under Vision 2047 to construct 50,000 km of access-controlled highways or expressways, supplementing the expressways currently in use. This initiative aims to enhance travel efficiency, reduce fuel consumption, and lower logistics costs, with completion targeted within 10-14 years after Cabinet approval. Prime Minister Modi underscored this commitment by laying the foundation stone for 112 national highway projects across India during his visit to Gurugram on Monday.
Will property prices shoot up further?
The Dwarka Expressway area, previously known for mid-income housing, is now witnessing a shift towards more premium developments. The improved connectivity and the allure of condominium living are particularly appealing to investors and buyers from Delhi.
JLL notes that nearly 38% of the 11,270 new housing units launched in 2023 in the Dwarka Expressway-New Gurugram cluster were priced above ₹2.5 crore.
Projects that were launched for ₹10,000-11,000 per sq ft some two years ago, are now fetching ₹18,000 per sq ft, as per prop-tech platform Square Yards. Estimates suggest prices could increase to ₹25,000 per sq ft in the future. Developer Signature Global recently pre-launched its first premium project in Sector 37D, close to the Expressway, and sold ₹3600 crore of inventory, with a lot of interest from NRIs.
The Global City project
Marketed by Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) as the ‘city of tomorrow’, the Global City project in Gurugram is a mixed-use integrated township.
Envisioned as a smart city featuring residential, commercial, educational, and healthcare facilities, this 1,000-acre project, in Gurugram’s Sectors 36, 36B, 37 and 37B, aims to become a unique investment destination with its internal mass rapid transportation system. With the Haryana government commencing the project's initial phase, Global City is poised to redefine urban living and attract global investors.
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