5 Emerging Property Trends In Gurgaon

Ever since its inclusion in the NCR, Gurgaon has witnessed enormous change and development. While Gurgaon evolved as the industrial and IT hub on the global map, the real estate sector here grew even faster. Gurgaon turned out to be one of the best satellite towns of the country and various leading developers grabbed an opportunity to execute projects here. With an inflow higher than the demand, and the product range being deviated from consumer friendly to developer friendly units, the market has seen a slow down since 2013. We are witnessing certain property trends in the new year 2017 that may define the future course of Gurgaon’s property market.

Gurgaon emerging property trends
Gurgaon emerging property trends

1) The Pace Of The Property Market

Gurgaon’s real estate market has been slow and soft for over 3 years now. The products available in the market have not been delivered on time, taking the faith of people away from the real estate sector. While a few developers managed to provide possession, a majority of the projects still wait for the handover. General weakness in the Indian economy has hurt the sentiments too. With the demonetization of the old currency notes, the pace has slowed down even more and is expected to stay the same over the coming year. Among the major cities, NCR is considered to be the worst affected by the crisis today. Gurgaon is the largest real estate market in the NCR and thus it can’t avoid a similar fate.

ILD Trade Centre commercial project at Sohna Road, Gurgaon
ILD Trade Centre at Sohna Road, Gurgaon

2) Benefit For Buyers Today

The buzz word in the market is “Ready Property”. Many builders are thus investing a lot of capital to quicken the construction work in their projects, something that will probably pull the home buyer. Very few property buyers and investors are considering new launches. This is a more realistic concept for the consumers as they get hold of what they pay for instantly. Further it is being seen that through combination of discounts and interest subvention schemes, prices are lower by about 20% or so in comparison to 2014/15. So for people waiting for the right time and prices to buy a home, 2017 may end up being beneficial as developers are offering good deals to clear their inventory.

3) What’s Slowing The Development?

The millennial city of Gurgaon grew so fast and in such a haphazard fashion, that urban planning was completely overlooked. Only now we see authorities making efforts to improve the electricity, water supply, drains and connectivity issues that are being faced by the people in Gurgaon. For instance one can see the rampant road construction while travelling along the NH-8. A number of underpasses and flyovers are under development at the major junctions including Rajiv Chowk, IMT Manesar, Iffco Chowk, Hero Honda Chowk and Signature Tower and many more. Several road works are underway to improve connectivity within sectors. A total of Rs. 120 crores is being allocated for the latter. With this pace of development of the road networks, the connectivity issues for residents of Gurgaon may soon be resolved. These projects in addition to SPR and NPR completion are likely to change the infrastructure profile of Gurgaon.

tata la vida sector 113 gurgaon
View of 150 m wide Dwarka Expressway close to Delhi Border in Sector 111

4) Prevailing Problems With Infrastructural Development

Proposals for betterment of real estate sector in Gurgaon have been made a number of times in the past but a certain set of problems has always forced the authorities to pull the plug. Especially in the case of Dwarka Expressway. There are over 100 townships along the 18 km stretch of the expressway but the road isn’t complete yet, which forces customers to reconsider investment decisions along the expressway. In 2016 the NHAI took over the project, but no significant development is seen on the expressway. New Gurgaon too is fast emerging as residential hub with several housing projects now complete. However, the road connectivity and social infrastructure development has not kept pace with requirements of urbanisation.

5) Major Reasons For Slide

Its not just the prices that have been under pressure in Gurgaon real estate but the demand is very weak too. Sales have been slow forcing developers to delay project launches. There have been no more than 5-10 project launches of considerable size in the past 15 months. The Gurgaon market specifically has an oversupply of expensive units which are not within the reach of general home buyers here. The Government of Haryana’s affordable housing policy encouraged projects in this space. Only such projects where units can be availed for as low as Rs. 15-20 Lacs have seen good demand. It is considered that properties within budget of Rs. 1-1.5 Cr still have takers if they are ready, anything above that is not on home buyers’ radar right now.

We believe the current slow down offers opportunity to home buyers and investors, but they need to be careful about where and what product they select. Infrastructural developments in Gurgaon will make the city much better placed for investing in a few years.

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