Overview:
India’s vision to be a global superpower has never been closer, with it firmly establishing itself as the world’s fifth-largest economy. The booming IT/ITes, e-commerce, logistics, and data centres have led to a massive demand for grade-A office spaces in the country. According to ICRA, this robust momentum is anticipated to grow organised real estate stock by 28% in 2023Q2. Consequently, the real estate sector has emerged as India’s second-largest employment generator. The sector is projected to soar to US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021, and contribute 13% to the country’s GDP by 2025. monumental 51% increase in residential sales, with circle prices expected to climb by 4-5% in Delhi-NCR.
Further, post-pandemic India has seen a substantial shift in buyer preferences, with them looking for homes with more open spaces and flexible working office spaces. This augmenting demand and supply for residential and commercial spaces are arguably the most noticeable in the Millenium City, Gurugram. Replete with a booming business district, world-class social infrastructure, and home to Fortune 500 companies, the city has blossomed into a global IT and industrial hub.
However, the saturation of the real estate market in Gurgaon, along with the skyrocketing circle prices has driven both investors and end-users to unlock the potential of micro-markets. The recent upsurge in social infrastructure development in Sohna has led it to become one such sought-after locale by discerning investors.
The Emerging Micro-market of Sohna:
The reopening of the market has led to an insurmountable surge in demand for commercial and residential properties. However, the metropolis of Gurugram is becoming more congested with every passing day. The increasing population in the city has led to a massive rise in the prices of residential properties. This has led to a rise in corporate honchos, ex-pats, NRIs, and pioneering IT and commercial corporates moving to the emerging micro-markets.
Located on the foothills of the Aravalli range, over the years Sohna has emerged as a booming economic centre. This is primarily due to its strategic location, infrastructure development, and growing industrial and commercial activities. Additionally, Sohna also offers compelling price options which are lower than the prices in primary markets of the regions and large land parcels that can be developed for housing.
Let’s consider the trends and reasons that are the driving force behind the interest of investors in Sohna:
- Evolution of buyer demand:
Post-pandemic, the real estate industry underwent massive structural changes, as the buyer’s visions, needs, and ethics went through a drastic evolution. Buyers are now proactively prioritising privacy and safety while looking for residential and commercial spaces. There has been an upswing in demand for spacious and affordable homes. Additionally, employees are preferring flexible workspaces, with easy commutes and easily accessible social infrastructure.
Sohna offers a wide array of residential options, including apartments, villas, and independent houses, catering to a wide range of budgets and preferences. With the growing demand for affordable housing, there has been a surge in the development of mid-range and budget housing projects on Sohna Road, making it an attractive destination for real estate investors. As stated by a report by Anorack, the average residential property rate in Sohna is INR 4,590 per sq. ft. as compared to INR 11,000 per sq. ft. in Central Gurgram.
Residential buyers today want to experience a modern lifestyle with an easy commute to their workspaces and amenities. A survey by CBRE attests to this fact with over a quarter of respondents preferring a commute of 30 minutes or less to the workplace. India’s leading employment generation and economic hubs such as Udyog Vihar and Southern Peripheral Road are only a 15-minute drive which has made Sohna an attractive residential destination for the modern workforce. Supplementarily, with property in Sohna being accessible on average at half the price, the micro-market has become an indisputable choice for many.
- An investors’ paradise:
The Department of Town and Country Planning states that in 2023 alone, 10 affordable group housing projects, 15 projects under the Deen Dyal Awas Yojana, and numerous commercial projects, with the leading realty groups of India are underway in Sohna. The last decade has seen unprecedented growth in the town and has piqued the interest of renowned investors due to the rapid development of social infrastructure.
The development of the proposed 5-km long elevated corridor from Subhash Chowk to Sohna-Gurgaon Road after Badshahpur Village, the extension of Delhi Metro’s Yellow Line from HUDA City Centre towards Sohna-Gurgaon Road and integrated Industrial Model Township (IMT) has further unlocked the hidden potential of Sohna.
Further, despite land in Sohna being relatively affordable, there has been a steady appreciation in property prices. The low entry cost coupled with Sohna’s connectivity and infrastructural development has propelled it to become an investors’ haven.
To summarise, the relatively affordable property prices, trailblazing infrastructural developments, and ingenious connectivity have firmly ensconced Sohna as a utopian investment locale.
