Gurugram, often touted as India's millennium city, presents a paradoxical reality: a gleaming skyline of luxury apartments juxtaposed with the fading dream of homeownership for most Indians. While the city has emerged as a luxury real estate powerhouse, surpassing even Mumbai and Dubai in the ultra-luxury housing market, a closer look reveals a market designed to cater to a select few, leaving the majority priced out.
The numbers tell a stark story. Property prices in Gurugram have surged, with some projects experiencing annual increases of up to 55%. Average property prices vary between ₹8,000 to ₹25,000 per sq. ft., depending on location, amenities, and project type. This has led to a situation where even individuals earning significantly above the national average struggle to afford a home. A recent example highlighted a tech professional earning ₹20 lakh annually who found it impossible to purchase a home with decent amenities without living paycheck to paycheck.
Several factors contribute to this affordability crisis. A primary driver is the focus on luxury housing by developers. Gurugram's real estate market is dominated by high-end residential complexes boasting amenities such as infinity pools, zen gardens, and Italian marble interiors, driving up costs. This focus on luxury projects has led to a decline in the share of affordable housing from 38% of all sales in 2019 to just 18% in 2024. The limited availability of land, combined with income concentration, prevents sharp price corrections. Demand in Gurugram is driven by senior corporate professionals, startup founders, CXOs, NRIs, and expatriates, who tend to have stable, high incomes.
The demand and supply imbalance further exacerbates the problem. While demand remains high, the supply of affordable housing has dwindled, creating a significant gap in the market. New launches in the affordable segment have seen a drastic decline as developers prioritize premium projects, resulting in limited inventory for middle-class buyers.
Gurugram's real estate market operates differently from most Indian cities. Pricing is shaped less by population growth and more by concentrated purchasing power. This has created a market where owning a home has become a function of purchasing power rather than aspiration. The city's housing market is sustained by a smaller pool of buyers with significant financial capacity, supporting high prices.
Despite the challenges, there are some positive signs. Gurugram has recorded a sharp rise in affordable housing sales, with a 191% quarter-on-quarter increase and an 88% year-on-year rise. This indicates sustained buyer interest in reasonably priced homes. Government initiatives like PMAY (Pradhan Mantri Awas Yojana) are also playing a pivotal role in boosting the affordable housing segment.
However, significant supply constraints remain a challenge. Developers continue to focus on premium and luxury projects, resulting in limited inventory for middle-class buyers. This mismatch between rising demand and inadequate supply has widened the gap in the affordable housing market.
The future of Gurugram's real estate market remains uncertain. While the luxury market is expected to continue growing, driven by increasing HNWIs and iconic projects, the affordability crisis needs to be addressed to ensure inclusive growth. A market correction could lead to more balanced pricing, making homes accessible to middle-class buyers. However, continued speculation could create a bubble, causing widespread financial distress.
Ultimately, Gurugram's real estate market reflects a deliberate design that caters to a specific segment of the population. While the city offers world-class infrastructure and a thriving corporate environment, the dream of homeownership remains elusive for most Indians. Addressing this imbalance will require a concerted effort from policymakers, developers, and urban planners to prioritize affordable housing and create a more inclusive real estate market.
