Flooded streets, empty sites: Gurgaon realty hits a snag

New Delhi: The infrastructure collapse in Gurgaon has put a brake on real estate sales, with developers and brokerage firms reporting a sharp dip in site visits by buyers.

Experts said that with better infrastructure and the upcoming airport, Noida may gain over Gurgaon.

"We have requested the government to give Gurgaon its share of development. Gurgaon is the biggest source of revenue for the Haryana government, yet it is neglected. A few spells of rain bring the city to a halt, which is not a good sight for investors. The impact is seen in sales in the last few months and Noida is clearly getting the benefit," said Praveen Jain, chairman emeritus, the National Real Estate Development Council.

There have been four-five instances of the city coming to a standstill due to rain, with people getting stuck for six to eight hours on the road.

Micro-markets like Golf Course Road, where a penthouse was sold at 190 crore; Golf Course Road Extension, where apartment prices range from ₹7-15 crore; and Southern Peripheral Road (SPR), where apartments are sold at ₹5 crore and above, are full of potholes.

"Over the last two decades, Gurugram has rapidly emerged as a major economic corridor, growing at a much faster pace than the civic and physical infrastructure developed by the government. The absence of a dedicated development authority for infrastructure development, like Noida, has also contributed to gaps in infrastructure across certain parts of the city," said Ashok Kapur, chairman, Krishna Group and Krisumi Corporation.

Many multinational executives have taken to social media to expose the poor infrastructure and garbage disposal system of the city.

"For sustainable growth, it is vital that infrastructure development keeps pace with real estate expansion, enabling Gurgaon to evolve into a world-class urban hub," said Vipin Sharma, chairman and founder of Gurgaon-based Aarize Group.

Heavy monsoon spells, often bringing 600-700 mm of rainfall annually in concentrated bursts, strain drainage systems and add to traffic congestion. Delays in road and civic upgrades also influence overall livability and investor sentiment.

"Most of the properties that developers claimed to have sold within hours of launch are taken by investors with the hope of selling for short-term gain. But the end user is missing from the market and these investors are now struggling to pay the next instalment. While rain has kept buyers away, the upcoming Shraddh period (from September 7-21) will also see less activity. Our only hope is the festive season when developers have planned launches," an executive of a brokerage firm said on condition of anonymity.

According to Anarock data, 14,255 apartments were sold in the National Capital Region in the April-June period, the lowest in the first quarter of any financial year since 2021.

Overall, there was an annual sales drop of 20%, with about 96,285 units sold in the quarter against 120,335 units a year ago.

Market momentum has moderated as sustained price hikes in 2023-24 impacted affordability, prompting caution among buyers and investors amid global uncertainties. Developers are likely to recalibrate launches and pricing, aiming for more balanced conditions by late 2025, said people in the know.