What is the most crucial factor that determines your investments? Undeniably, it is the potential for higher investment results. An investment must pass the test of higher appreciation to become worthy of an investor's attention. In the last few years, two decades to be exact, Gurgaon, now known as Gurugram, has become one of the epicentres for real estate investments in north India.
Many factors contributed to the rise of Gurugram as a prime real estate investment destination. But before we discuss the factors responsible for the emergence of Gurugram as a real estate investment hotspot, let us briefly look at the city's history.
Gurugram has symbolised India's economic rise in the 21st century. In the last decade of the twentieth century, when India opened its economy and embraced globalisation, Gurugram, known as Gurgaon, became one of the recipients of considerable investments in the country's IT infrastructure. Multinational companies flocked to the region, hoping to find cheap labour, land, and ease of doing business. The decision to invest in Gurgaon, a sleepy hamlet, proved correct; the rest is history.
Why did Gurugram Win the World's Attention?
Gurugram was preferred over other regions because of its advantageous location. It is in the state of Haryana but very close to Delhi – the capital of India. Multinational companies want their offices to be close to the seat of power in a country. Delhi has reached its saturation level vis-a-vis real estate development. There is not much space left to develop the city further. Additionally, the land cost in Delhi is much more than in Gurugram. Investing in Gurugram is cost-effective and efficient because of its closeness to Delhi.
Factors That Contributed to the Rise of Gurugram as a Millenial City
Gurugram, as stated above, was a sleepy hamlet in Haryana before the economic liberalisation of 1991-92. The end of License Raj in India catalysed economic progress and brought huge investments from outside, creating animal spirit in the market. The factors that ensured Gurugram's emergence as the first choice of investments were as follows:
Land: The availability of large tracts of land at competitive rates was a significant reason investors chose the region over other cities. Easy availability of land coupled with proximity to the national capital positioned Gurugram as an investment hub.
Labour: The availability of cheap labour was another factor that played a significant role in transforming Gurgaon into what it is today.
Connectivity: Gurgaon is in the Delhi-NCR region. It connects to Delhi and nearby areas through a vast network of metalled roads, highways, expressways, flyovers, and metro. Excellent connectivity ensures seamless movement of goods and services to and from the city.
Facilities: Over the years, Gurugram has developed into a mega city. It has world-class infrastructure and is home to premier educational institutions, medical facilities, and many other things that make it attractive for investments.
Now, it is time to turn our gaze towards Gurugram's real estate landscape and analyse the market.
Gurgaon's Real Estate Market
Gurgaon, modern-day Gurugram, is one of the most promising cities in India. It is home to scores of multinational companies that employ thousands of workers, contributing to the city's rapid rise as a Millenial City of the country.
The real estate market in Gurugram is thriving because of its continuous development and immigration of working professionals.
The city boasts top-notch infrastructure, world-class connectivity, and an enabling environment for living.
How safe is real estate investment in Gurugram?
The higher the risk, the higher the chance of profit maximisation is one of the thumb rules in investment. But investment in Gurgaon follows a slightly different logic. The real estate investment in Gurugram offers higher investment returns at minimal risk.
What Makes Real Estate Investment in Gurugram Safe?
Real estate in Gurugram is a safe bet because of many reasons. We discuss some of the reasons that make real estate in Gurgaon, India, a safe investment option:
Stable Market: Real estate is a dynamic market. The rise and fall in real estate prices are dictated by factors such as the economy's overall health, rising inflation, job creation, and expansion of the middle class with high purchasing power. The middle class is the main engine of growth in any economy. An expanding economy lifts people at the lower rung of the growth ladder and boosts demand in many sectors. The Indian economy is the fastest-growing economy in the world. At a time when the US is facing the dangers of a looming recession, and China is witnessing deflation, the Indian economy continues to go from strength to strength. Gurgaon is at the centre of the Indian growth story. The city attracts multinational companies, ensuring a massive inflow of foreign investments. The injection of foreign investments into the city's economy is vital to Gurgaon's prosperity. Furthermore, top-tier companies in the town attract working professionals from all over the country. Many working professionals in the city contribute to the robust demand for living space, triggering healthy competition among real estate developers.
Unabated Growth: Many top-tier cities in India have grown to their potential and have no further scope of more development. These cities have used the available land and fresh development would involve recreation of land through reclamation. The real estate market in cities that have grown to their full potential is under pressure. Gurgaon is radically different from such cities. The city’s growth story began in late 1990’s and is continuing till date. The supply and demand in the Gurgaon real estate market is in equilibrium. The balanced growth of Gurgaon ensures the availability of residential and commercial spaces at competitive prices.
Scope for More Growth: Gurugram is developing without let. The city is growing and has the potential to grow further, though at a rate slower than in the past. The availability of land, interest of the people, and a potential for more growth ensure stability in the city’s real estate market.
Gurugram’s Real estate Story
The continuous rising curve of real estate in Gurugram has fascinated market observers and thrilled investors. The city’s world-class physical infrastructure, excellent social infrastructure, top-notch amenities, excellent connectivity, and good governance combine to push the city to the numero uno position in the real estate market.
The city is hospitable to a thriving real estate market. The presence of the world renowned companies that employ hundreds and thousands of employees from different parts of the country create a strong demand for properties in the city. Gurugram has all the right infrastructure and environment to develop further and become a real estate investment hotspot.
Commercial Real Estate Sector in Gurgaon
Gurgaon is the perfect city to give your entrepreneurial dreams a new shape and direction. The town offers excellent business opportunities in different segments. From FMCG – fast-moving consumer goods – to luxury goods to services, one can explore different market segments and strategies for their business accordingly.
The presence of a vast number of working professionals means there is a strong demand for goods and services. Owning a retail space in Gurgaon ensures steady income and higher investment returns.
The high purchasing power of the people living in the city translates into intense demands for goods and services, ensuring high profits for entrepreneurs.
Factors Facilitating Commercial Growth in Gurugram
Planned City: Chandigarh was India's first planned city. Gurugram is India's post-liberalisation planned city, offering a one-off living and business experience. The planned infrastructure, safe regulatory mechanism, etc., ensures the city's success.
Easy Connectivity: Gurgaon occupies a strategic location in the Delhi-NCR region. Its world-class infrastructure connects it to many parts of the city and other adjoining areas. The ease of connectivity ensures easy mobility and movement of goods and services.
Amenities: Gurgaon is a millennium city, boasting top-rated amenities such as excellent infrastructure, transportation, open spaces, community parks and other recreational zones, etc. The availability of modern-day amenities cements Gurugram's strong position in the real estate market.
Strong Demand for Goods and Services
The most crucial criterion for commercial investors is demand in the market. Strong demand for goods and services signifies a robust economy, whereas a tepid demand signifies a floundering economy.
Gurgaon is home to salaried working professionals. These professionals have purchasing capacity and fuel demand for goods and services in the economy. The presence of a large pool of professionals in Gurgaon is responsible for the continuous rise in demand for different goods and services, ensuring success for business enterprises.
Residential Real Estate in Gurgaon
An expanding city witnesses a high demand for residential projects. Conversely, a city expands because there is a demand for residential projects. Because of many factors, Gurgaon is witnessing a healthy market for residential real estate projects. Firstly, the city is home to major companies that employ thousands of skilled and unskilled workers nationwide. The influx of immigrants into the city creates a strong demand for living spaces, triggering competition between developers to provide the best quality residential projects at competitive prices.
Real Estate Projects in Gurgaon
Many real estate projects offer excellent residential and commercial investment opportunities in Gurugram. Developers such as M3M and Birla Navya have come up with some of the best properties in the city at competitive prices. These developers, along with many others, have capitalised on the ever-increasing demands for properties in Gurgaon and have come up with disruptive ideas to ensure the best residential and commercial properties with cutting-edge technology.
Real Estate Property Prices in Gurugram
The city's real estate market has something to offer to different segments of the customers. Whether looking for retail space in a swanky mall or a co-working area in a business-friendly environment, the city has it all. One can have modest but comfortable flats and luxurious villas in the residential category. Location, amenities, connectivity, etc., decide the property's price.
A Quick Glance Through the Real Estate Landscape of Gurugram
The city has impressive real estate projects across residential and commercial sectors. These real estate projects cater to diverse customers. Gurugram has a vast portfolio of real estate projects from low-end to high-end. The city's potential for further development and expansion is the most significant fact that makes Gurugram a real estate haven. The city is home to many international companies, and many more companies are coming up, ensuring steady growth of the town in the coming times.
The Constant Appreciation of Real Estate in Gurgaon
Investors look for potential for appreciation before investing. Thanks to its ever-growing graph, Gurgaon is a city that assures higher investment returns. The city is witnessing frantic growth cutting across different sectors and is expected to grow at healthy rates in the coming times. The increased demand for real estate in Gurgaon ensures handsome dividends on investments.
Conclusion
Gurugram is a prime real estate market in north India. The city captures people's imagination thanks to its strategic location and well-developed infrastructure. The city has various advantages over other cities. For example, Gurgaon is home to scores of multinational companies that bring enormous investments. The presence of tier-one companies ensures the development of the region at a faster rate. The presence of companies also provides high employment, creating a class of citizens with high income and increased purchasing power. These people fuel demand for goods and services, contributing to the healthy economic cycle.
Gurgaon has some of the best residential and commercial properties, offering investors the best chance to earn higher investment returns and secure their future without taking much risk. The continuous expansion and growth of the city are a testament to the city's resilience and capacity for further development.
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