Real Estate Gurgaon - The fantasy tag of “Millennium City”

Gurgaon for quite some years (from 2007 to 2012) remained the centre point of real estate investments in India. The tag of “Millennium City” made people imagine that we would finally have a city akin to Singapore, New York or California in India and Real Estate in Gurgaon was to fulfil that dream. Though, the sky scrapers and Malls came up in great abundance with international finesse and in reasonable short time frame, the infrastructure has failed the city. Whoever owned land in Gurgaon became an overnight millionaire, and buildings started coming up with total disregard to the infrastructural needs. Real Estate in Gurgaon like any other city in India came up in random manner, without much planning. Land has been utilised for office space, hospitals, schools, malls, shopping arcades, corporate buildings etc. without giving a thought to roads, water supply, electric supply, sewage, drainage, public utilities, transport system, parking spaces and the list can go on. This primarily happened due to vested political interests, power lobby manipulations, failure of the municipal setup to act as a regulator, greed of the developer lobby – exploiting the upswing in the market and total lack of planning at all levels.

The B-Positive factor of Real Estate in Gurgaon

The silver lining for the Real Estate Sector in Gurgaon is the fact that, though the sector has been seeing a down trend in the last two years across the country, the property rates in Gurgaon have only come down by 2% and the market has remained stable in the first quarter of 2015. This highlights the resilience of the Real Estate Sector in Gurgaon. A number of factors have affected this situation of Real Estate in Gurgaon; (a) Lack of infrastructure in terms of roads, water and electricity, in the

newly developed sectors. (b) The non-availability of infrastructure has led to delayed project delivery in

a number of cases. Though this problem has been created by the Municipal authorities, the sufferers are the Developer (in this case, as quite a few projects are ready for handover) and the investors, like always.

(c) A piled up inventory (approximately 1 lakh dwellings) which would take another 36 to 48 months to liquidate.

(d) Property in Gurgaon has been bought for investment purposes, rather than self-use, thus leading to large scale non-occupancy.

Advisory for Investment in Real Estate in Gurgaon

• Invest in Primary Market. The Primary market holds more promise than the secondary market in Gurgaon. The secondary market of Property in Gurgaon has saturated, though the rates may not have come down drastically but, there are no buyers due to high costs. This situation is going to continue for the next few years; therefore it makes sense to invest in the primary segment.

• Location and Developer Factor. Unless for self-use, the paramount factors of consideration at this stage, while investing in property in Gurgaon are, the location of the project and the Developer. Choose a location which holds the maximum potential in terms of infrastructure and liveability. Pick the developer who has a reputation to fend for.

• Exploit the Affordable Housing Segment. The government has given a huge boost to the affordable housing sector by announcing relaxed parameters of essential amenities and facilities which are mandatory for any residential project.

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