A Peak into the Gurgaon Real Estate Market!

Gurgaon –a land of possibilities!

There was a time when Gurgaon was a simple village near New Delhi that was hoping to jump onto the development bandwagon. The setting up of Maruti Suzuki’s production plant set the wheels of development in motion and now after years and years of progressive approach and key investment, especially in the real estate market, Gurgaon is now boasting of housing 250 of the world’s most successful Fortune 500 companies.

1) With good things, come bad things!

The hype of real estate in Gurgaon did good things like inspiring and spearheading Noida and Greater Noida’s development. However, the bad thing in the land prices shot up like a rocket! I always feel Gurgaon’s real estate is overhyped and overrated. Here are a few reasons to help you agree with me:

2) Proximity To MNC’s And Offices

A lot of people here are working in these Fortune 500 MNC’s. People who have their offices in Gurgaon tend to live close by, which has now become an investment factor for youngsters working here. Sadly, the prices are so hefty that they have to make do with rented apartments that too on a shared basis.

3) Proximity To New Delhi

The Delhi metro rail service has made connectivity to New Delhi or Noida, a piece of cake! Everyone knows that the location of a property drives its value, connectivity to public transport jacks it up even more! Prices of Gurgaon property, especially Grade-‘A’ office spaces are astoundingly high due to this phenomenon.

4) It Is Now More Like An Investment Market Rather Than A Residential Or Commercial Hub

The elite class of Haryana and Uttar Pradesh are investing big sums of money into Gurgaon real estate since new projects come up each day. This does increase the demand for such projects, but ends up hiking the prices of single properties for genuine customers looking forward to reside in Gurgaon. This investment play game is hampering the success of Gurgaon due to overpriced property.

5) Industrial Hub

A lot of factories, subsidiary commercial and manufacturing complexes are on the rise in Gurgaon. However, this gives rise to the prices of commodities. The base rate of commodities is the highest currently in the city which is overburdening the pockets of people staying here. This is affecting the demand for properties in Gurgaon and people are choosing other places like Sohna or Faridabad for lower priced properties.

6) Dominated By Private Builders

There isn’t parity between government allocated properties and the ones managed by private builders. The prices are also unmatched. The problem here is of quality. The buyers’ ends up paying a steep price for quality which doesn’t cost as hefty as some really costly private builders charge them.

7) Less Area – More Demand

This phenomenon is rampant in almost all high-profile cities currently under development in India. With Gurgaon, this is a regular feature ever since the city started taking shape. The demand is not met since most of the area is being wasted over large expanses of commercial hubs rather than promotion of residential spaces. The problem is now, that agricultural land is being grabbed illegally to meet this demand for residential property.

8) High-profile Demand

Most of the supply is grabbed away by high-profile investors who bid for multiple properties and tend to put these up for rent. The bad part is that the rent is so high that most genuine customers can’t afford it and miss out on staying in a good quality property due to lack of funds.

9) "Proposed" Infrastructure Projects

There are many projects that which could not be completed in time or for which the demand was not met. Sadly, the prices of these properties normally remain stagnant, which spells out more problems for people whose budget is out of this range.

10) Brand-Image Building Companies Hike up Prices and Loan Base Limits

The brand-image building companies that promote these infrastructures promote these projects so much that they tend to hike up the prices of such properties which also means that getting a loan for these properties gets equally more cumbersome.

11) Eco-Friendly Tricks

Most developers are trying to pull of normal construction projects as ‘Eco-friendly’ buildings which are gaining immense popularity among prospective buyers who like to be around nature. Putting this 'eco-friendly' tag is helping the builders in marketing their properties. Normally these claims are all baseless and feature mere lawns and gardens which hike up prices of such projects. All check that such properties have been certified by any rating agency to ensure they are really ‘Eco-friendly’ or not.

The ‘Millennium City of India’, Gurgaon has shown tremendous and unprecedented growth in the last few years, especially due to the foresight of real estate developers who have helped make the city a home for multitudes of people with diverse culture who happily co-exist with each other here in this modern and high-paced life.

The need of the hour is simple – smart pricing systems, and a fair bidding mechanism that ensures that high profile customers get only what they need. Genuine customers should be able to buy properties they want.

After all, that is their dream; settling in Gurgaon.”

About: Ashwinder Raj Singh is a Real Estate and Residential Transactions Professional with expertise in both the High value and the affordable segments / markets within India and abroad. He is EVP and Country Head – Sales & Distribution with IndiaHomes, India's largest property advisory company. As a key member of the executive management team at IndiaHomes.com, he is responsible for the overall revenue delivery across the domestic and international real estate primary market.

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