Delhi-Mumbai Expressway: How real estate market will change in Faridabad, Gurgaon and beyond Sohna

The Delhi–Mumbai Expressway (or Delhi-Vadodara-Mumbai Expressway) is an under-construction 8-lane access-controlled highway developed to connect the Delhi NCR (national capital region) with the western city of Mumbai, the two major metropolitan cities of India. With the foundation stone laid on 8th March 2019, the project starts in Alipur in Sohna (South Gurgaon) – with an alternate entry point being developed at the DND Expressway to connect it directly with the Ring Road in Delhi – and ends at Jawaharlal Nehru Port (JNPT) in Mumbai, Maharashtra, connecting the northern part of India with the western part. 

Proposed to be completed by March 2023, the project is expected to reduce traffic congestion in the Ashram and Badarpur locality in Delhi, and in Faridabad, Ballabhgarh and Gurugram in Haryana, along with providing an alternative route to the traffic from UP and Haryana to bypass Delhi.

While providing easy connectivity, the project is also expected to lead to an appreciation of property prices in the southern region of Faridabad, along with the inflow of investment in real estate along the under-construction stretch in Sohna (Gurgaon), Faridabad (along Ballabhgarh), Palwal, Manesar and Nuh.

Layout of the Delhi-Mumbai Expressway

The total length of the Delhi-Mumbai Expressway is 1,350 km. The length includes the already under-construction Vadodara Mumbai Expressway, which has been subsumed within the Delhi-Mumbai Expressway project, and an additional of 92 Kms to connect the expressway to JNPT port. The greenfield project passes through various states, including Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra, providing an alternate route to the already functional NH-48.

In Delhi-NCR, the Delhi-Mumbai Expressway is proposed to start at Alipur in Sohna (South Gurgaon, Haryana), with NHAI also developing “DND Flyway-Delhi Mumbai Expressway Link Road”, which would be a greenfield link between DND Flyway and the Delhi-Mumbai Expressway in Sohna, and another greenfield link to directly connect a branch of the expressway to the upcoming NOIDA International Airport in Jewar (YEIDA City) of Gautam Buddha Nagar in the state of Uttar Pradesh. The second link is proposed to start from Ballabgarh in Faridabad, Haryana. 

The primary stretch of the expressway, which will merge into the Gurgaon-Sohna Highway at Alipur, will provide easy connectivity with Dhaula Kuan in Delhi via. Delhi-Gurgaon Expressway (NH-48) and the under-construction Sohna Elevated Road (Rajiv Chowk-Sohna corridor) of Gurgaon-Sohna Highway.

NHAI is also in the process of developing an interchange to connect the Western Peripheral Expressway (Kundli-Manesar-Palwal or KMP Expressway) with the Delhi-Mumbai Expressway at a cross-section of Sohna, Palwal, Manesar and Nuh districts in Haryana.

The DND Flyway-Delhi Mumbai Expressway Link Road is proposed to be developed in the form of a National Highway and will pass through Sohna, Nuh and Faridabad districts in Haryana, along with a small stretch in the form of an elevated section along Yamuna River in Delhi. The 59 km DND Flyway-Delhi Mumbai Expressway Link Road is expected to be completed by 2023, and has been planned to be completed in three-phases:

    *These two stretches will also have six-lane service lane for local traffic

Status of the project

As of mid-2020, the agencies have started some activities on almost the entire stretch of the project. While around 497 km of the project is under-construction, contracts have already been awarded (and work begun) on 162 km of additional stretch. For the remaining stretch, the agencies are in the process of conducting the bidding process (for 569 km), while the DPR (detailed project report) is pending for the remaining 33 km stretch.

Additionally, in October 2020, the NHAI began soil testing on the DND Flyway-Delhi Mumbai Expressway Link Road (esp. Faridabad-Sohna bypass road) for accelerating work on the extension of the Delhi-Mumbai expressway to DND Flyway in Delhi, and is also preparing a DPR for the additional 91 km connecting the Expressway with JNPT near Mumbai. The green field connecting link between a branch of the expressway and NOIDA International Airport in Jewar is also in the early conceptualization stage.

Impact on Real Estate in Haryana

While the greenfield project has been undertaken to bring connectivity to many of the underdeveloped areas of the country, along with providing an alternative route to the already stressed NH-48 (which presently connects Delhi with Mumbai), the project is also due to have multiple real estate implications along its route. 

In Haryana, the project will lead to the development of many villages which are located along the new greenfield expressway route and the connecting link roads. The list of villages which are expected to be impacted or achieve transformation by the project include:

Demand Drivers of regions in NCR around Delhi Mumbai Expressway

Being developed in a high growth Delhi-Mumbai Corridor, the settlements would enjoy benefits of great connectivity and well-planned sector-wise vertical development at a later stage. Some of the major demand drivers of the city include:

The stress on greenery near the expressway is planned to be unmatched with the NHAI proposing planting ~10 lakh trees along the expressway, along with infrastructure for water harvesting, and developing and utilizing solar power.

Additionally, the government is also mulling developing industrial clusters (including MSMEs) along the Delhi-Mumbai Expressway, along with creating opportunities in various leather, plastic, chemical and other clusters which are to be developed along with smart cities and villages. 

Acquisition of land for the proposed city

After the change in the alignment of the project, NHAI has paid a land acquisition cost between INR 70 to 80 lakh per hectare for acquiring the land for the project. While the land acquisition for the project has been completed in Haryana, it is still ongoing in Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.

The project is being developed by NHAI’s fully owned special purpose vehicle (SPV) named ‘DME Development Ltd’. The SPV is responsible for financing, construction, and operation of the expressway.

Advice to home buyers and investors planning to invest in township near the developing expressway

If you are planning to buy a patch of land or property near the expressway, the first suggestion would be to buy the property near both the entry points of the expressway in Delhi-NCR. An investment near/in Alipur in Sohna on the Sohna-Gurgaon Corridor is advisable for people who are looking for early appreciation of prices, especially with a 3-4-year time horizon. Additionally, interested buyers can also make investments in the Neharpar region of Faridabad in localities near the bypass for short term returns on investments.

For long term investment, the buyers can make investments in properties/land which are being developed on the cross-section of Sohna, Palwal, Manesar and Nuh districts in Haryana, near the under-construction expressway. As the project has been undertaken by the NHAI, the agency is exploring the legal possibility of developing different townships and industrial clusters around the expressway.

Few factors which need to be kept in mind before putting your hard-earned money in the proposed township:

• Buy a house/plot or any other property directly from a government authority. Visit the official website of various state authorities or NHAI to regularly to keep yourself updated about the launch of any project

• Make an investment with at least a decade-long investment horizon, and make sure that you invest only your spare money in the project. Don’t seek any huge returns in a short- or medium-term investment horizon

• As the corridor/townships will be hugely dependent on the timelines of the construction of the Delhi-Mumbai Expressway, any delay in construction of any phase of the expressway may affect or hamper the price appreciation in the corridor

• The proposed greenfield township will take a few years to turn habitable. Plan on moving in the township only when people start occupying flats and moving there, especially when the developed pockets along clusters has well-developed schools and hospitals, good connectivity to road, rail and airports