Gurugram’s Golf Course Extension Road Emerges as Bustling Commercial Hub; What’s Behind the Boom in Property Prices?

Gurugram’s skyline is reaching new heights and it’s not just the buildings that are soaring—it’s the commercial rental prices too! With record highs surpassing Rs 100 per square foot, the iconic Golf Course Extension Road (GCER) is commanding attention like never before. For business professionals eyeing the real estate scene, GCER has become the focal point of a bustling commercial hub, attracting top-notch companies faster than deals can be sealed.

Extending a distance of 7-8 km, Golf Course Extension Road, also known as Southern Peripheral Road, has emerged as Gurugram’s popular sub-city, both in the residential and commercial segments. While the average residential property prices across the top seven cities of the country saw a modest increase of 6% to 9% in the first part of the last year, Gurugram’s Golf Course Road micro-market defied expectations with 42% YoY and 26% QoQ appreciation.

Rental Yield

G Hari Babu, National President of NAREDCO, said that the region in the last three years witnessed an impressive average capital price appreciation ranging between 7% to 10% annually. Moreover, its rental yield has surged by a 17%, reflecting the region’s robust investment potential and attractiveness to both domestic and international stakeholders.

“As businesses flock to establish their presence along this coveted stretch, the Golf Course Extension Road emerges as a dynamic hub poised for continued prosperity in India’s evolving real estate landscape,” he said.

Hike In Circle Rates

In December 2023, Haryana government proposed a sharp hike in Gurugram circle rates. The proposed hike in circle rates for areas falling near Dwarka Expressway to Golf Course Road is between 43% and 87%. Once this proposal gets through it will further solidify Golf Course Extension’s ROI.

Pyush Lohia, Director, Lohia Worldspace, said that such unprecedented figures underscore the burgeoning demand and investor confidence in this thriving locality, thus solidifying its status as one of India’s most sought-after real estate destinations.

“With its strategic location and robust infrastructure, it continues to attract both domestic and international investors. This trend is indicative of the area’s potential for sustained growth and development in the foreseeable future,” he explained.

Connectivity

With well-established links to highways, the Delhi-Mumbai Industrial Corridor (DMIC), Delhi-Mumbai Expressway, and Indira Gandhi International Airport, the area is primed for sustained growth and development.

The AIPL Business Club on Golf Course Extension Road has made waves by sealing a rental deal surpassing Rs 100 per square foot, creating a milestone in the area. The total leasing has surpassed over 6,12,000 square feet of space. The total project area is 6 lakhs square feet including a dedicated 17,000 square feet food court and a six-level car parking facility. Renowned names such as Deloitte, Cargill Foods, British Airways, and Ford Motor Company have already secured office spaces here, contributing to an impressive 96% occupancy rate.

Anil Pankaj Singh, VP of Corporate Leasing at AIPL, emphasized that the achievement of securing a deal exceeding Rs 100 per square foot is not just a significant milestone for the AIPL Business Club, but also indicative of a broader trend in the industry.

He said that Grade A office spaces are witnessing unprecedented demand and value. There has been a a trend of domestic firms joining the ranks of multinational corporations in gravitating to Grade A office spaces, especially those incorporating sustainable features. In cities like Gurugram.

“There is a clear preference for quality, with tenants increasingly willing to pay a premium for office complexes built in accordance with green building standards. Additionally, that rental rates across most business districts in Gurugram, including Golf Course Extension Road, have seen a notable increase,” he said, adding that “given the limited availability of Grade A office spaces, it is expected that the strong demand will sustain throughout 2024”.

Source : ET