Will rain drown Gurugram's luxury real estate?
Commuters make their way through the waterlogged service road along the Delhi-Gurugram Expressway after heavy rainfall, in Gurugram, Wednesday, July 9, 2025. (Photo: PTI)
Even with this repeated flooding, buyers are not shying away from putting their money into high-end homes in areas like Golf Course Road and Golf Course Extension.But will this trend continue if the infrastructure fails to keep up?LUXURY PRICES LIKELY TO HOLD, BUT GROWTH MAY SLOWDespite the civic troubles, experts believe the luxury housing market in Gurugram is not facing a major correction, yet.'Gurugram's luxury market sees massive demand from both end-users and serious investors and, unfortunately, also from investors with speculative intent. Because there is also genuine demand, prices are likely to sustain,' said Dr Prashant Thakur, Regional Director & Head – Research & Advisory, ANAROCK Group.However, he added that the pace of price growth may slow down.Sahil Verma, COO of Shray Projects, agreed to this and said that lxury prices have grown sharply since Covid, driven by lifestyle upgrades and NRI interest."In well-developed sectors, demand remains strong,' he said. That said, in some areas where prices have moved ahead of value, minor corrections could happen, he added.REAL ESTATE BUBBLE?With prices rising sharply in premium areas like Golf Course Road, some experts have raised concerns about a real estate bubble.Dr Thakur said, 'We have not seen a bubble yet. The market today is more mature and regulated than in 2008.' However, he cautioned that if developers keep launching high-priced projects without checking demand, oversupply could become a problem in the future.Verma too believes there is no bubble, but a price peak in certain luxury pockets is visible. 'Buyers are becoming more careful and focusing on long-term liveability, not just investment,' he said.WHY DO BUYERS STILL CHOOSE GURUGRAM?Even with repeated flooding, power cuts and traffic congestion, buyers continue to invest in Gurugram's luxury projects. What makes them stay?'Gurugram offers strong connectivity, proximity to Delhi, and premium amenities,' said Dr. Thakur. These are the reasons people see long-term value in the city, despite its civic problems.Verma added that many luxury projects are now built with in-house systems for drainage, power backup and water management. 'Even if city infrastructure lags, these gated projects offer a self-contained lifestyle,' he said.WILL INFRASTRUCTURE GAPS IMPACT LONG-TERM VALUE?Bad drainage and traffic jams are not new in Indian cities, and Gurugram is no exception. According to Dr. Thakur, infrastructure gaps haven't slowed down price growth yet, especially in premium housing.Verma noted that while poor infrastructure can affect short-term prices, areas showing gradual improvement — like Southern Peripheral Road and Dwarka Expressway, continue to attract buyers.'Infrastructure issues affect how fast homes sell, but not necessarily their long-term value,' he said.One growing concern is that developers seem to be building faster than the city can support.'There's a visible gap between private and public investment,' said Verma. Developers are launching luxury projects to meet demand, but government upgrades in drainage, roads and utilities haven't always kept pace. 'This puts pressure on basic services, especially during peak seasons like monsoon,' he said.Dr. Thakur said that while this has not reduced demand so far, it is something buyers must factor in when choosing where to invest.WHAT BUYERS NEED TO WATCH OUT FORBoth experts agree on one thing: buyers need to be cautious. High prices and strong demand don't mean every project is worth the money.'People should be aware of how infrastructure affects daily life. Also, price growth may not be as fast going forward,' said Dr. Thakur.Verma warned buyers against falling for flashy marketing and inflated prices in underdeveloped areas. 'Check RERA compliance, builder track record, and local infrastructure before investing,' he advised.A slight correction, he added, is not a sign of weakness but part of how markets adjust. 'For end-users and long-term investors, this is still a strong market, if you make informed decisions.'- Ends
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