Should One Invest in Real Estate or Property in Gurgaon in 2016

real estate investment in gurgaon

Real Estate and Property in Gurgaon saw an unprecedented growth from 2004 to 2012. No other city in India could match the Property Index growth rate of Real Estate in Gurgaon. With mid 2012 started the stagnation of real estate Property in Gurgaon and 2013 initiated the downward trend which continues till date. There are any number of theories and speculative analysis which are explaining this downfall, some calling it that the ‘Property or Real Estate bubble has exploded in Gurgaon’, and some patting their backs for having predicted the same, years back. Well, do not want to get into this never ending discussions and nerdish analysis, what we intend to explore is whether Gurgaon Real Estate still hold any potential or is it a sinking ship, and if it holds any potential then in which areas.

Today Gurgaon has one lakh residential apartments which are surplus and as per predictions it will take another 3 years to liquidate this inventory, presuming that no new projects come up. This gives a very gloomy picture and adds to it the fact that as the prices of Real Estate in Gurgaon are comparatively higher the buyers are shying away from investing in Gurgaon.

Having said this, it still remains the ideal time to invest in Real Estate in Gurgaon. Developers in Gurgaon are aware of the glut and the cash starved Real Estate market is wooing investors with all kinds of discounts and freebies, one however needs to choose the area (sector) carefully. As of now projects are coming up in the areas of Golf Course Extension Road, Dwarka Express way (from Dwarka to intersection of Northern Periphery Road with Pataudi Road), Northern Periphery Road (from Junction of Pataudi Road to NH 8) and Southern Periphery Road. Out of these four sections or zones, Golf Course Extension Road has some high end projects, with the highest rates and may not be suitable from investment point of view; Southern Periphery Road has serious infrastructure issues, with roads still under construction, issues of water and electricity supply still need to be resolved by HUDA; Progress on Dwarka Expressway is stuck up because of the litigation issue of Palam Vihar II, and may take quite some time to resolve (2 to 3 years, in case it gets resolved); the Northern Periphery Road holds the maximum potential , there are quite a few projects coming up in this area, with Vatika and DLF holding the maximum chunk, infrastructure in terms of roads, water and electric supply is almost developed and the general market rates are ranging from INR 4000/- to 8000/- per Sq. ft, which is ideal from investment point of view.

The Real Estate market in Gurgaon should start picking up somewhere end of 2015 or first quarter of 2016, the jump may not be as huge as we from 2007 to 2012, but nevertheless Gurgaon Real Estate would still remain the most sought after destinations in India.

 

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