Of late, Surajkund has been hyped as an attractive alternate real estate destination on the Delhi NCR map. Property prices in this location have doubtlessly seen an uptrend, and this has evinced increasing interest from end-users and investors.Though there was very limited new residential supply in this area in the past, this market has gained pace and there are several residential projects in the pipeline across varied budget categories. Surajkund holds good long-term investment prospects from the perspective of real estate capital appreciation, especially in the affordable housing segment. However, the popular hype about it developing into an alternative destination to South Delhi bears closer examination.
The True Picture
Surajkund is a part of Faridabad, which is primarily an industrial town with rather minimal corporate activity. The manufacturing sector, which has been the main driver of the economy, is currently also under tremendous stress. In other words, there is no other major growth driver for the region. The limited availability of better employment opportunities owing to the conspicuous absence of the corporate sector has resulted in only a relatively small proportion of middle and upper-middle class home buyers choosing Surajkund as a residential destination.
Neither is the proportion of HNIs hailing from the industrial sector and the Faridabad region’s more affluent families very significant. Given the absence of alternate growth drivers, this residential market, however upbeat it may be, will witness only limited growth for now.
Currently, luxury projects like Charmwood by Eros and Omaxe Forest by Omaxe – the only projects of their kind in the region – have seen massive appreciation, and their investment potential in terms of further appreciation has peaked out. In fact, Surajkund is slowly losing its affordability tag due to the escalating prices, with overall scope of appreciation diminishing concurrently.
Budget-conscious investors will be more interested in other alternative locations such as the Neharpur region (Sector-80 Faridabad and beyond) as the ticket sizes there are smaller, availability of affordable homes is higher and the prospects of returns on investment more encouraging. Also, civic facilities such as water, electricity and physical infrastructure are way below the baseline requirements of a promising growth corridor.
What Works In Surajkund’s Favour?
There are definitely some factors that work for Surajkund, such as its abundant green cover and an undoubted locational advantage. Surajkund does have the benefit of proximity to South Delhi, with Greater Kailash being a mere 15-20 minutes’ drive away. Also, it is well connected with Gurgaon via the Gurgaon-Faridabad road. The Mehrauli–Badarpur road further enhances its connectivity with other NCR regions. Surajkund also has some good hospitals, malls and attractive hotels
Surajkund has benefited from the fact that real estate in South Delhi and in other NCR regions such as Gurgaon comes at significantly high premiums. This puts these prime areas beyond the financial appetite of many end users and investors. Surajkund still has many affordable options to offer, which is why many middle class end-users and investors have shown interest in this region.
No Comparison To South Delhi
One must keep in mind that unlike Gurgaon and pockets of South Delhi, its connectivity to the airport and the general lack of public transportation remain challenges. This means that Surajkund, despite its locational advantages, is unlikely to remerge as an alternative to South Delhi for home buyers.
South Delhi and Surajkund are two very different markets when we speak of available options as well the kind of interest they are evoking. Only investors and end-users with limited financial appetite are considering Surajkund. South Delhi is the nexus of some of the most prestigious residential addresses; also, along with other prime NCR markets like Gurgaon or Noida, it remains unbeatable when it comes to shopping and leisure activity options.
Not surprisingly, the price-gap between Surajkund and South Delhi are quite significant. On an average, rates in Surajkund are less than one-third of those in South Delhi. Currently, a premium residential project in Surajkund in the current times commands a price in the range of Rs. 10000-12000.sq.ft., while a comparable property in South Delhi costs in excess of Rs. 30000/sq.ft. There is no likelihood of this gap narrowing significantly in the coming years.