By Vineet Anand
Gurgaon, more popularly known as Millennium City, is seeing a constant upgradation in the civic and business infrastructure. A classic example of this is the Golf Course Road (GCR), which is being upgraded with a 16-lane signal-free corridor connecting to the MG Road & NH 8 near Shankar Chowk on one end and with residential and office corridor of Golf Course Extension Road at the other end. GCR has become a popular choice amongst key corporates and Fortune 500 companies. During the initial days of the construction cycle, people residing in sectors and condominiums in and around the Golf Course Road faced high levels of pollution and traffic congestion. However, as Phase 2 of Rapid Metro has gone live now, commuting from the Golf Course Road has become much smoother, thereby reducing the overall travel time and slowly resolving the problem of last mile connectivity.
Similarly, DLF Cyber City, 13+ million sq ft campus has emerged as one of the Central Business Districts (CBD) for IT/ITeS destination. GCR has gained prominence as the most sought-after CBD for commercial office asset class offering most prime commercial office buildings. To name a few, DLF Two Horizon Center, Hines One Horizon Center that are designed by international architects and offer state-of-the-art retail amenities, high-end technical specs and premium quality of construction. These buildings command highest rental values on this stretch and have been able to attract marquee multinational companies. The average commercial office rental value on this stretch ranges from Rs 90 to Rs 170 per sq ft per month.
GCR has also positioned itself as the location of choice when it comes to the finest and most high-end luxury and ultra-luxury residential properties. The city’s skyline started changing when one of the country’s largest real estate developer DLF launched its premium residences named Aralias, Magnolias and Camelias. Today, these condominiums offer ultra-luxury/modern living that are favorite destination for HNIs, expats and top multinational & CXO executives. Some of the other luxury residential projects include Emaar Palm Springs, Salcon Verandas, etc. The average capital values for residential properties in and around GCR range from Rs 12,000 to Rs 30,000 per sq ft.
With the current office stock vacancy levels of close to 14%, limited supply of quality Grade A office space and rising interest from corporate occupiers, the commercial office rentals on GCR will strengthen in the short term. In the long term, given the amount of commercial office supply that is currently under construction and will come up on the MG road and parts of NH 8 (closer to Delhi) admeasuring close to 2.5 million sq ft (in phases) spread across next 2 years, GCR may have to compete on absorption and rental values with these projects/markets. However, with superior infrastructure, last mile metro connectivity, and ample support from residential and retail catchments, GCR may have a competitive edge over these markets.
Overall, GCR positions itself as a high-end luxury destination both from office and residential standpoint and slowly it is being amalgamated by a mix of high-end retail mall/amenities, thereby making it an integrated and self-sustainable micro market of the future.
(The author is Director-Office Services, Colliers International India)