Dwarka, one of Asia’s largest suburbs, is situated in southwest Delhi. This suburban area was developed to decongest the capital city. End users are likely to find Dwarka a desirable residential destination owing to its immaculate planning, sound infrastructure, reasonable (though not low) prices, and proximity to employment hubs.
Location and connectivity
Dwarka enjoys good connectivity with Indira Gandhi International Airport, which is approximately 10km from this sub-city. Gurgaon, a key corporate hub, is about 15kilometres away.
The major roads that connect Dwarka include NH-8, Outer Ring Road, Najafgarh Road and Pankha Road.
The 18-km-long Dwarka Expressway, currently under construction, will touch Delhi near Dwarka Phase II. Once it is ready, it will boost connectivity between Gurgaon and Dwarka.
Dwarka is endowed with sound physical infrastructure. It was first planned, developed and then delivered, so its infrastructure is of a high order.
Each sector has four points of entry and is surrounded by 60-metrewide roads on all four sides. Traffic jams are a rarity within Dwarka. Within each sector there is a lot of greenery.
Around each housing society there is a green patch (two to three metres wide) on three sides. The residential and commercial zones are properly demarcated.
Dwarka has been planned as a zero-tolerance zone, which means that any encroachment or excessive construction is not tolerated. These rules are observed strictly in this area.
For young families one of the prime attractions is the presence of good schools: Delhi Public School, Nirmal Bhartia, Sri Venkateshwar International, GD Goenka, Presidium and Indian Heights.
The Metro enables residents of Dwarka to travel quickly to Central Delhi and other parts. The Airport Express line connects Sector 21 of Dwarka with Indira Gandhi International Airport on the one side and Connaught Place on the other.
Several infrastructural projects are on the anvil. An Inter-State Bus Terminal (ISBT) is planned in Sector 23. Delhi Development Authority (DDA) also plans to develop an 18-hole golf course and a diplomatic enclave here.
Should end users buy here?
Dwarka is well suited for end users as it has a large number of ready-to-move-in properties, mostly available in the secondary market. DDA and society (Cooperative Group-Housing Society or CGHS) apartments are also available here.
Reasons why end users should consider buying property in Dwarka.
Pricing: Currently DDA flats are available for Rs 10,000-12,000 per square foot. Society flats cost more – about Rs 12,000-15,000 per square foot. The pricing is, however, lower than in colonies of West Delhi, where it is Rs 20,000 per square foot and above currently.
Employment: Very few employment opportunities are available within Dwarka. However, several prime commercial hubs are accessible from here. The DLF area of Gurgaon, where several offices are located, can be reached within 15-20 minutes if you leave early in the morning. Connaught Place is about 25km away but has become easily accessible via the Metro.
Nearly 8-10 hotels are being developed near terminal three of the IGI Airport. Once ready, they will offer large-scale employment in the hospitality sector. Dwarka is also a good place to live in for people who work in the airline sector.”
Low monthly maintenance cost: In Gurgaon monthly maintenance cost comes to Rs 3-5 per square foot per month. In addition, one has to pay for power backup, as power cuts are frequent there. In Dwarka the monthly maintenance cost comes to about Rs 1-2 per square foot per month. Power shortages are also less frequent in Dwarka.
Should investors buy here?
Over the last three years prices in Dwarka have appreciated by almost 100%. Currently rates range from Rs 12,000-15,000 per square foot in group housing societies. There is scope for further appreciation because these rates are still not very high when compared to the rates in West Delhi. Besides, the infrastructure here is much better. That is why a number of people who earlier lived in Gurgaon and West Delhi, especially in the crowded parts, have shifted here.” Ahuja believes that an appreciation of 30-50% is possible over the next one and a half years. At present prices on Dwarka Expressway range from Rs 6,000-8,000 per square foot. It will take at least five to six years for those projects to be ready. A lot of speculative buying is taking place on Dwarka Expressway. Once it dies down, money will flow into Dwarka where a lot of readyto-move-in housing is available. Once the flyover to Janakpuri is completed in the next six to eight months, people from West Delhi will shift to Dwarka and that will drive prices up. However considering other factors, Dwarka might not be as lucrative an option for investors as it was when it was a developing area. Dwarka Expressway might offer greater scope for appreciation since that area is still under development. But, Dwarka’s potential for appreciation is limited by the fact that prices have already gone up by around 50% in the last couple of years.
Dwarka does have a few shortcomings that buyers should be aware of. Inadequate social infrastructure: Dwarka lags behind in the area of social infrastructure. It has a few small malls like Vardhaman Star City Mall (Sectors 7 and 23), Vardhaman Crown Shopping Mall (Sector 19), Eros Metro Mall (Sector 14), and Manish Global Mall (Sector 22). To meet their high-end shopping needs, residents have to visit Pacific Mall in Tagore Garden.
Dwarka has no multiplexes. People who wish to watch a movie travel to either Janakpuri or Gurgaon.
Inadequate public transportation: a Wahal of DTZ says, “Public transportation facilities within Dwarka need to improve.”
Connectivity to Janakpuri: The entry and exit from Janakpuri remains clogged. The flyover being constructed at Dabri is still not ready.
Dwarka’s reputation as a residential destination was marred by the CGHS scam, unearthed in 2004. More recently, the societies that have been absolved of wrongdoing have not yet been allotted to their owners. Many people have been waiting for allotment for two and a half to three years.
Lack of high-end housing:
As DDA’s vision behind developing Dwarka was to provide affordable housing, one finds mostly DDA and CGHS flats, and to some extent, builder floors. High-income group (HIG) flats and luxury apartments, available in Gurgaon, are not to be found here. DDA plans to build 1,240 HIG flats in Sector 19.
If you are buying an apartment in a CGHS society, make sure that the society has received clearance from the high court. Check the primary owner’s status of allotment.
Two years ago, a large number of societies were cleared. Many people began to live within their apartments even though they did not have the proper papers establishing their ownership. Avoid buying such apartments because you will not be able to get them registered in your name or sell them.”
If you buy property in a CGHS society, first get the property registered in your name and then get the society’s membership transferred in your name.
Do a lot of diligence if you are buying a plot in Dwarka. There could be title disputes between the current owner and a farmer. Before purchase, establish clear ownership of the plot. Otherwise once you have bought it, another party could appear claiming to be the owner.
Finally, once you have purchased the apartment or plot, get it converted from leasehold to freehold.
Alok Kumar Upadhayay
Real Estate Professional