Navigating the Real Estate Market in Gurgaon: Insights from Industry Expert Varun Chopra

The real estate market in Gurgaon has been experiencing a surge in demand, with numerous projects being launched and sold out within days. To gain a deeper understanding of this dynamic market, we sat down with Varun Chopra, a celebrated employee of Smart World Developers, known for his integrity, ethical practices, and value system. In this engaging podcast, Varun shares his insights on various aspects of the Gurgaon real estate market, from the demographics of buyers to the role of channel partners and the relationship between Smart World and M3M.

The Euphoria of “Sold Out” Projects

One of the most striking trends in the current real estate market is the phenomenon of projects being sold out within a matter of days. Varun explains that this is indeed true in some cases, and developers are following a trend of launching a product and aiming to sell it as quickly as possible. However, he also points out that there are two perspectives to consider:

1. Developers who sell out their entire project in one go
2. Developers who have a vision to take their product to a certain level in terms of pricing, launching in phases and creating a benchmark in the market

“Both the models are existing in the market and both the models are doing great.” – Varun Chopra

Varun believes that the second model, where developers launch in phases and create a ladder for price appreciation, is more rewarding for initial investors. These investors can benefit from the developer’s vision to set a benchmark in the market and achieve a higher return on their investment.

Timing Your Entry into a Project

When it comes to investing in a real estate project, timing is crucial. Varun advises that the best time to enter a project is during the pre-launch or early stages, as this allows investors to reap the maximum benefits from any price increments. However, he also acknowledges that even if an investor has missed the initial launch, there may still be opportunities to invest and see appreciation, especially in locations with strong growth potential, such as Dwarka Expressway.

“Dwarka Express has started selling at 5000, it has sold at 5000, it has sold at 8000, it has sold at 11000, it has sold at 20000. Right, So I know the potential that the market will go very easily till 30-35000.” – Varun Chopra

Real Estate as an Asset Class

When considering different asset classes for investment, Varun emphasizes the importance of starting early with equity and SIPs, as compounding plays a significant role in building a strong financial base. However, he also recognizes that investing in real estate is a big commitment that requires careful planning and the ability to manage both needs and wants simultaneously.

For millennials and those just starting their careers, Varun recommends focusing on building a base through equity and SIPs while ensuring that emergency funds are not touched. Once an individual has sufficient funds and can fulfill their needs and wants, investing in real estate becomes a more viable option.

“Building a real estate building an asset and real estate is I would say achieving a milestone at my age I would say.” – Varun Chopra

The Demand for Real Estate in Gurgaon

Despite the numerous launches in the Gurgaon real estate market, Varun believes that there is currently more demand than supply. He attributes this to several factors, including:

1. The inability of the infrastructure in Delhi to support the growing population and car ownership
2. The limited options for gated community living in Delhi compared to the organized development in Gurgaon
3. The desire for an upgraded lifestyle among those already living in Gurgaon

“Upgrading the lifestyle has been a trend from last 2 years I would say in this market.” – Varun Chopra

Demographics of Buyers

Varun provides insights into the demographics of buyers in different micro-markets of Gurgaon:

• Golf Course Extension Road: Attracts investors from Gurgaon who understand the potential of the area, as well as those from Delhi, Faridabad, and Noida who recognize Gurgaon as a corporate hub with proximity to Fortune 500 companies and the airport.
• Dwarka Expressway: Appeals to a wide range of buyers, from end-users to investors, with a significant demand from NRIs. The connectivity, infrastructure development, and proximity to key projects like the diplomatic enclave make it a highly sought-after location.

“Apart from that I would say it is 1 of the biggest developments that has took place in 2024 up till now. So the connectivity that you get there, the kind of space that you get. It is near the airport, connectivity is very strong. I think Dwarka Expressway is becoming a nerve center of NRI.” – Varun Chopra

Defining Luxury in Real Estate

The term “luxury” is often used in the real estate market, but its definition can vary from person to person. Varun believes that luxury is a combination of factors, including:

• A good location
• A quality product from a reputable developer
• Desirable amenities
• A sense of security in the project
• The potential for asset growth

“Holistically where you are getting a good location you are getting a quality product from a quality developer, you are getting good amenities, right? And you are getting a sense of security in that project and you know that you are definitely taking real estate for tea and menus, but it is an investment where you know that your asset will grow. I think that is the real luxury that you can buy.” – Varun Chopra

Transparency in Pricing

Varun emphasizes the importance of transparency when it comes to pricing in the real estate market. He advises buyers to carefully review the cost sheet provided by the developer and ensure that all components, such as EDC, IDC, club membership, and car parking, are clearly mentioned. If a developer is offering a “box price,” it is crucial to understand what charges are included and to clarify any doubts before proceeding with the purchase.

“1 more thing that is as a developer as an owner developer side, situations where something things go wrong is that people look at any excel cost sheet and say yes, this is good, I have made it excel but they should always prefer an authentic cost sheet that is given by a developer with their logo.” – Varun Chopra

The Role of Channel Partners

Channel partners, also known as brokers or marketing agents, play a vital role in the real estate ecosystem. Varun estimates that approximately 80% of sales happen through channel partners, as they help bridge the gap between developers and buyers. Channel partners promote the developer’s product, guide buyers according to their needs and budget, and position the product in the market.

“So channel partners promote your product and guide the buyer of your product and they make that buyer. So from a customer’s point of view, a broker plays a very important role that according to your need, channel partner suggests you that where you have to allocate your funds.” – Varun Chopra

Smart World Developers: A Dynamic Journey

Varun has been with Smart World Developers for three years and describes his journey as amazing and full of learning opportunities. He appreciates the dynamic nature of the organization and the opportunities for growth and handling responsibilities independently.

Smart World Developers currently has four projects in its portfolio:

1. Smart World Gems (Sector 89, New Gurgaon): Completely sold out, with investors enjoying 80-90% appreciation.
2. Smart World Orchard (Sector 61, Golf Course Extension Road): Sold out, with only 3-4 units remaining. Superstructure is complete, and delivery is expected within 6 months.
3. Smart World The Village (Sector 66, Golf Course Extension Road): Ultra-luxury category product with a 4BHK sample flat available for viewing. Launched in phases, with 5 out of 6 towers currently open and 25-30% of the opened inventory remaining.
4. Smart World 1DXP (Sector 113, Dwarka Expressway): First phase completely sold out, with the second phase set to launch soon. High demand due to its location and product category.

“So within 1 year you can expect the current pricing to go up by 30 to 35 percent in this year itself. By December.” – Varun Chopra, on the price appreciation potential of Smart World projects

The Relationship between Smart World and M3M

Varun clarifies the relationship between Smart World and M3M, stating that while the promoters are the same, Smart World is a different entity that focuses on innovation, the latest technologies, and the finest constructions. The company offers a distinct product line that caters to the evolving needs of the market.

Rapid Fire Questions

• Is this the right time to invest in the residential market of Gurgaon?
  Varun believes that anytime is the right time to invest in real estate, as prices are likely to increase rather than decrease.
• When should an individual enter a product?
  Ideally, investors should aim for the first price bracket or pre-launch stage. If that is missed, they should assess the project’s launch timeline and enter before the superstructure is complete, especially in booming locations like Dwarka Expressway.
• Which payment plan is better?
  The payment plan that minimizes the overall payment is generally considered better.
• What is the hotspot of NCR?
  Dwarka Expressway is currently the hotspot of NCR, offering a wide range of opportunities for investors and end-users alike.

Conclusion

Varun Chopra’s insights into the Gurgaon real estate market provide a comprehensive overview of the current trends, demographics, and investment opportunities. As the Indian economy continues to grow, the real estate sector is expected to follow suit, making it an attractive asset class for investors.

By understanding the different models of project launches, the importance of timing, and the factors that define luxury in real estate, investors can make informed decisions and maximize their returns. The transparency in pricing, the role of channel partners, and the relationship between developers like Smart World and M3M further contribute to the dynamic nature of the market.

As Gurgaon continues to attract a diverse range of buyers, from local investors to NRIs, the potential for appreciation in micro-markets like Golf Course Extension Road and Dwarka Expressway remains strong. With developers like Smart World Developers offering innovative and high-quality projects, the future of the Gurgaon real estate market looks promising for both investors and end-users.