Sohna Road: Emerging real estate destination of Gurugram

Sohna Road has emerged out as a micro-market established in Gurugram. It offers a mix of residential, retail and entertainment centers located close to National Highway 8. This sector, with its 8 million sq ft of ready office stock adds up to approximately 12% of the total office stock of Gurugram. In the next two years, it is estimated to expand another 2.5 million sq ft of supply which is currently under construction.  The micro-market constitutes vacancy levels of 22-25%. The top office buildings, Bestech Business Tower, Vatika Business Park, Brookfield (Candor Tech Space), Space I Tech Park, and JMD Megapolis are a mix of IT-ITeS, commercial, and SEZ office buildings. Presently, the rental value ranges from Rs. 50 to Rs. 70 sq ft per month. With companies like Convergys, Boston Scientific, Xerox, Infosys, Capgemini, Atos, E Value Serve, this stretch has experienced a growth in MNCs and Grade A offices as they have shifted their locations to establish themselves on Sohna Road. This area offers steady rental incomes which has attracted investors and has increased the popularity of many commercial projects amongst the medium to large high net worth individuals (HNIs). Depending on the project or floor plate size, it presents its buyers variety of investment options with its wide range of 500-1,000 sq ft reaching 10,000 sq ft as well. The rental yield of 6.75% and 7.5% can be expected from these investments. According to Gaurav Bhalla, Managing Director of Vatika Hotels, “Sohna can be considered a hub of retail and commercial development. Enjoying excellent connectivity with Golf Course Extension Road (part of the Southern Peripheral Road), NH-8, and New Gurugram, it is an ideal destination for corporate to invest in the commercial sector, especially office spaces and co-working spaces. Most of the start-ups are attracted to co-working spaces due to low rentals. South of Gurugram is one place which offers excellent space at affordable prices.” Sohna Road not only offers commercial investments, it also provides excellent ready-to-move-in residential options. Gaurav Mittal, Managing Director of CHD Developers believes that “Sohna Road has emerged as a prime commercial location in the Gurugram market. Its excellent connectivity with Golf Course Extension Road and NH-8 makes this location an ideal destination for investments in commercial projects. Investors looking for affordable options and long-term investment horizons may select this location. It makes perfect sense to invest today when prices are affordable.  Once the proposed infrastructure is in place, prices are bound to go up.” Ravish Kapoor, Director of Elan Group said, “The accelerated urbanisation and rampant migration of working population from different states have created a tremendous demand for Sohna Road. The area is set to become a hub for commercial, residential, institutional and industrial development because of its strategic location. The rate of properties here is much lower than Delhi-Gurgaon with better facilities. Investors looking for long-term investment horizons may go for investment in this area.”