6/16/2016
TOD policy impact: Home, land prices set to go down in Gurgaon, but not immediately | ET RealEstate
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TOD policy impact: Home, land
prices set to go down in Gurgaon,
but not immediately
Close to 100 developers, the likes of real estate majors such as DLF, IREO, M3M, Suncity, Emaar
MGF, etc, are set to reap the benefits of this TOD policy
Sanu Sandilya | ETRealty | 15 June 2016, 8:00 AM IST
NEW DELHI: The government's nod to
transit oriented development in
Gurgaon is set to open up the real
estate market in the city, thereby
reducing land and home prices, say
experts.
The real impact, however, might take
some time to show due to the current
sluggish market.
Close to 100 developers, the likes of
real estate majors such as DLF, IREO,
M3M, Suncity, Emaar MGF, etc, are set
to reap the benefits of this TOD policy.
The Gurgaon district planning committee on Monday approved transit oriented development
(TOD) policy, first announced in 2014, with an aim for denser development along the existing and
proposed metro corridors.
Areas up to 500 metre from the metro routes will fall under 'intense TOD zone', and will get an FAR
of 3.5, from 1.75 earlier, while areas under 'transition TOD zone, between 500 metre and 800 metre,
will get an FAR of 2.5.
http://realty.economictimes.indiatimes.com/news/industry/tod­policy­impact­home­land­prices­set­to­go­down­in­gurgaon­but­not­immediately/52750506
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6/16/2016
TOD policy impact: Home, land prices set to go down in Gurgaon, but not immediately | ET RealEstate
"Logically, this policy should reduce home prices. However, we will have to see how many people
are ready to add more inventory in an already oversupplied market," said Amit Oberoi, National
Director, Valuation & Advisory Services, Colliers International.
According to Mudassir Zaidi, national director, residential agency, Knight Frank India, the
commercial real estate sector is in a better position to benefit from the new TOD policy as the
sector is doing good at present. "However, we can only see the impact aḀ刂er 3-4 years aḀ刂er the
structure is built, unlike residential," he said.
Established micromarkets like Golf Course Road and Golf Course Extension and Sector 88 to 99 of
New Gurgaon is set to see an early impact of this policy due to already established infrastructure
and booming residential community, according to experts.
"Locations like Dwarka Expressway, which has not many people living till now, will take time to
gain from this policy, according to Zaidi.
Praveen Jain, president of realtors' body NAREDCO feels land prices are also set to get down in
near future. "This policy will bring in surplus supply into the market, and considering the slow
demand, there will surely be a downward pressure on the land prices," he said.
Urban Development Ministry in July last year had approved a similar transit oriented development
policy for Delhi, with an aim to address the growing problems of pollution, congestion and
shortage of homes for the poor and middle class in the state. The influence zone in the TOD policy
was 500 metre on both side of metro corridor.
http://realty.economictimes.indiatimes.com/news/industry/tod­policy­impact­home­land­prices­set­to­go­down­in­gurgaon­but­not­immediately/52750506
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