Setting up of Gurgaon Development Authority is expected to give a push to real estate demand in the city and could lead to appreciation in price in the long-run.
In a bid to ensure smooth functioning and development of Gurgaon a ‘Super Smart’ city, Haryana Chief Minister Manohar Lal Khattar on Monday announced formation of Gurgaon Development Authority (GDA), the process for which will begin on November 1 this year. The move is expected to give a push to real estate demand in the city, feels Ankur Dhawan, CBO of PropTiger. In a conversation with FE Money, he further added that Gurgaon could see appreciation in price in the long-run. Excerpts from the interview:
Q. The Haryana Chief Minister has announced the setting up of the Gurgaon Development Authority (GDA). What was does this mean for the city’s real estate?
A. Until now there have been only one development authority for full Haryana which is HUDA. HUDA was also the maintenance agency for HUDA sectors. This meant limited bandwidth of HUDA for Gurgaon development as well as maintenance. Recently state government has transferred maintenance of HUDA sectors to Municipal Corporation of Gurgaon. Formation of GDA is a step in the same direction of giving autonomy to Gurgaon development. First of all it will ensure funds raised for Gurgaon are used for Gurgaon development and not in other parts of Haryana. Second it will ensure more focus on Gurgaon development and key decisions taken in Gurgaon rather in Chandigarh. We expect infrastructure of Gurgaon to considerably improve in coming months and this will revive demand in Gurgaon real estate.”
Q. What would it mean for developers and consumers?
A. For developers it will mean approval of their projects by GDA rather by HUDA. This will ensure ease and speed of approvals. Also EDC collected from consumers will be utilised in development of Gurgaon rather in other parts of Haryana. For consumers they can expect much better infrastructure within city making it more livable.
Q. Will it help in improving the infrastructure? If yes, how it will affect real estate prices?
A. It will ensure timely completion of infrastructure as well as better maintenance. In the short run we do not expect real estate prices to rise as infrastructure development is slow process. Hence prices will rise only when the livability of sectors improve. In long run (3-5 years) we can expect good appreciation in price.”
Q. Any negatives of having a Gurgaon Development Authority (GDA)?
A. “A lot will depend on smooth formation as well as transfer of responsibilities from HUDA to GDA. We have seen despite formation of MCG in 2008, till 2016 it was only maintaining a small part of Gurgaon which created more problems than solving. Hence we sincerely hope GDA implementation is not as shaky as was of MCG.”
Q. Will it ensure smoother approvals for new buildings
A. “Yes, project approvals within Gurgaon should be handed over to GDA making it easier for developers to get approval from local authority.”