Both Sohna Road and New Gurgaon are fast developing real estate markets in Gurgaon. While Sohna Road has the advantage of being closer to the city centre, New Gurgaon offers homes at competitive prices. With several factors at play, one has to take note of all the aspects before making an investment decision.
Sohna Road, a roughly 21 km-long stretch connecting Sohna to Gurgaon, has various popular localities like Sectors 49, 70 and 71 lying on and alongside it. It is touted as the next realty hotspot of Gurgaon but does not suit the budget bracket for many potential homebuyers. New Gurgaon, on the other hand, is an emerging region consisting of Sectors 81 to 95, of which Sectors 85 and 86 are highly popular. While it is driven by affordable property prices, the poor state of connectivity and civic infrastructure pose challenges for the residents. Both the regions are developing in their own might and present their own set of challenges and prospects for investors. One must look at all such aspects while considering an investment in either of these regions: (informations only.com)
Types of properties available
More than half of the properties available for sale on Sohna Road are residential apartments. The remaining half includes substantial amounts of builder floors, farmhouses and pieces of residential land ranging in size from 600 sq ft to 9,000 sq ft.
On the other hand, residential apartments make up the majority of the inventory, almost 90 percent, in New Gurgaon. Both the regions have a dominant share of ready properties, which are the most in demand amongst the buyer community.
Coming to configurations, both Sohna Road and New Gurgaon have an abundant supply of 3 BHK units. Those looking for smaller housing formats like 1 BHK units can look at Sohna Road which has a larger share of such homes in comparison to New Gurgaon. Both regions offer an almost equal share of 2 BHK units. (informations only.com)
Capital and rental trends
The average weighted capital ‘asks’ in Sohna Road during Jan-Mar 2020, hovered around Rs 6,100 per sq ft. Post the COVID-19 crisis, sales have closed at a negotiated price of up to 5-10 percent, bringing the average prices in the region down to around Rs 6,000 per sq ft in Jul-Sep 2020. In the four-year time frame between Jul-Sep 2016 and Jul-Sep 2020, the average capital ‘asks’ on Sohna Road have dipped by approximately 14 percent.
In New Gurgaon, on the other hand, average capital rates are comparatively affordable and stand at around Rs 4,700 per sq ft (Jul-Sep 2020). The prices have witnessed an appreciation of around nine percent between Jul-Sep 2016 and Jul-Sep 2020.
The average rental rates for 2 BHK and 3 BHK apartments in Sohna Road during Jul-Sep 2020 stood at Rs 20,000 to Rs 25,000 and Rs 30,000 to Rs 35,000 per month, respectively. The same set of configuration in New Gurgaon is rented for around Rs 12,000 to Rs 14,000 and Rs 17,000 to Rs 20,000 per month, respectively. (informations only.com)
Budget-wise distribution of properties
New Gurgaon has the majority of its properties listed between Rs 60 lakh and Rs 1 crore. Sohna Road, on the other hand, has almost 40 percent of the properties priced in the range of Rs 1-2 crore. One of the reasons behind this is that Sohna Road offers residential lands parcels and farmhouses, which are mostly priced at or above Rs 1 crore. Both of the areas have a dearth of low-cost housing options priced between Rs 25 lakh and Rs 60 lakh.
Investors considering properties listed within the range of Rs 60 lakh to Rs 1 crore can consider projects like Eldeco Accolade, Central Park The Room, and Ashiana Mulberry along Sohna Road, and Godrej 101, and SS The Coralwood in New Gurgaon. The more luxurious projects include Tulip Ivory, Vipul World and Eros Rosewood City along Sohna Road, and DLF The Ultima, Microtek Greenburg and Anant Raj Maceo in New Gurgaon. (informations only.com)
Investment Potential
Looking at the historical price trends, Sohna Road has failed to deliver the exponential boom in residential prices, unlike what was expected of it, post a spike in commercial activities. Since most of the MNCs preferred to set their bases in Cyber City and near the Huda City Centre metro station in Sector 29, owing to better connectivity, a lot of potential residential demand was taken away from Sohna Road,” informs, Vikas Arora, Owner, Oxford Realtors.
He further explains that in the price bracket of Rs 60 lakh to Rs 2 crore, homebuyers find better and recently-built housing options along Golf Course Extension Road as compared to Sohna Road. Such homes offer better amenities at an almost similar price and a greater potential for capital appreciation.
What can work for Sohna Road in the future is the upcoming 21 km-long Sohna Elevated Road, which is going to be a significant transport infrastructure project connecting Rajiv Chowk with Sohna via Badshahpur, Bhondsi, Alipur and Ghamroj. The stretch would de-congest the route and provide alternative connectivity between National Highway (NH) 48 (near Rajiv Chowk) and the Kundli-Manesar-Palwal (KMP) Expressway. This elevated road, which is expected to get operational by 2022, shall give an impetus to property prices in various sectors alongside Sohna Road.
New Gurgaon, on the other hand, is in the nascent stages of its development. With improving social and civic infrastructure in the form of planned sewerage and drainage systems on a wide scale, the region is set to provide an enhanced lifestyle to its residents. Moreover, along with its proximity to National Highway 8 and the commercial complexes of Manesar and Gurgaon such as the Industrial Model Township, the region is touted to host increased housing demand, thus, propelling prices in the mid-to-long term. (informations only.com)
Commercial Proximity
| Commercial Complex | Sohna Road (Sectors 70 and 71) | New Gurgaon (Sectors 85 and 86) |
| Industrial Model Township – Manesar | 16.1 km (25 minutes) | 7.5 km (15 minutes) |
| Cyber City, Sector 24, Gurgaon | 18.4 km (27 minutes) | 23.4 km (33 minutes) |
| Regus – Unitech Cyber Park, Sector 39, Gurgaon | 8.7 km (20 minutes) | 16.3 km (30 minutes) |
| One Horizon Centre, Sector 43, Gurgaon | 13 km (23 minutes) | 24 km (35 minutes) |
Disclaimer: The time given to reach various locations is the approximate drive time during non-peak hours. (informations only.com)
Connectivity
| Destination | Sohna Road (Sectors 70 and 71) | New Gurgaon (Sectors 85 and 86) |
| Huda City Centre (Nearest metro station) | 10.9 km (20 minutes) | 20.2 km (30 minutes) |
| Gurgaon Railway Station | 13 km (28 minutes) | 15.2 km (32 minutes) |
| Indira Gandhi International Airport | 24.3 km (31 minutes) | 29.2 km (38 minutes) |
Source: Google maps
Disclaimer: The time given to reach various locations is through using a car and approximate in nature. (informations only.com)
Social Infrastructure
| Social Infrastructure in and around Sohna Road (Sectors 70 and 71) | ||
| Educational Institutions | Healthcare Facilities | Shopping Complexes |
| G.D. Goenka World Institute | Polaris Hospital | Platinum Towers |
| K.R. Mangalam University | Ektaa Hospital | Spaze Boulevard I |
| KIIT Group of Colleges | Govind Hospital | Ambience Mall |
| Social Infrastructure in and around New Gurgaon (Sectors 85 and 86) | ||
| Educational Institutions | Healthcare Facilities | Shopping Complexes |
| Dronacharya College of Engineering | Genesis Hospital | SS Omnia |
| RGI Gurgaon | Medeor Hospital | NSG Shopping Complex |
| Suraj PG Degree College | Prakash Hospital | Elan Miracle |
In conclusion, New Gurgaon is an up-and-coming region where improving connectivity and social and civic infrastructure are expected to lead to a decent price hike in the future. Whereas, Sohna Road can also be forecasted to bounce back after the transport infrastructure in the region improves, and an increasing number of companies shift towards the region. The planned Metro connectivity in both regions is also expected to propel the investment scenario in times to come. (informations only.com)