Haryana government’s move to set up Gurgaon Development Authority (GDA) in a bid to develop the city as a ‘Super Smart’ is encouraging for the real estate sector and could lead to spurt in property prices in the city, experts said.
Haryana Chief Minister Manohar Lal Khattar on Monday announced setting up of GDA with a corpus of Rs 500 crore for which the process will begin on November 1.
“Gurgaon has been brought on the global map and is known by different names like millennium city, global city, Smart City..we have a plan for its integrated development,” Khattar said while announcing the GDA.
Santhosh Kumar, CEO – Operations & International Director, JLL India said, ” This is a very encouraging news for real estate sector, especially specific to Gurugram. Currently for real estate development, multiple approvals are required from different authorities, which consume a lot of time. A single authority taking care of all of these will certainly expedite development.”
Developers are making several attempts to attract buyers in the form of attractive payment schemes and freebies, but such a move will help them fast-track development and achieve timely delivery of their projects.
On the impact of real estate prices in Gurgaon after the formation of GDA, JLL’s Santhosh Kumar added that the move will have a positive impact on the infrastructure and will help it in improving and contributing to surge in real estate price. He said,”a city-specific government body located in the city itself would be able to understand the problems in the infrastructure and devise solutions for them in a better way. The urban planning and development of the city’s infrastructure expected to be taken care of by the GDA will focus on easing traffic congestion on the roads, drainage problems, etc. Invariably, better infrastructure, results in property price appreciation in the areas that the infrastructure caters to. As the infrastructure improves, property prices are also expected to go up. ”
Echoing same thoughts as Santhosh, PropTiger CBO Ankur Dhawan said with GDA consumers can expect much better infrastructure within city making it more livable. He said, “It will ensure timely completion of infrastructure as well as better maintenance. In short run we do not expect real estate prices to rise as infrastructure development is slow process. Hence prices will rise only when the livabilty of sectors improve. In long run (3 – 5 years) we can expect good appreciation in price.”