Over the last few years, Gurugram’s real estate has been witnessing an unprecedented growth of property rates that surpasses even Mumbai—the India real estate giant. There have been several factors which turned Gurugram into an investment hotbed for both residential and commercial investments. BOP.in’s co-founder, Gaurav Mavi unveils the top five reasons why Gurugram real estate rates are sky-rocketing in comparison to Mumbai:

1. Infrastructure growth

Gurugram’s infrastructure has been improved considerably, with projects like the Dwarka Expressway, which is expected to reduce travel time to Delhi by 50%, expansion of the metro network, and planned smart city initiatives. Property rates in areas near the Dwarka Expressway have increased by about 20-30% in the last three years. The fact that the city is situated close to the Indira Gandhi International Airport and enjoys excellent connectivity with Delhi and the NCR regions has only increased its allure. Such developments have increased property demand and, consequently, prices.

2. Flourishing Business Hub

Being the business capital of North India, Gurugram is home to more than 250 Fortune 500 companies, IT majors, and startups. This has resulted in an annual increase of 15-20% in the rate of commercial property. The average price of Grade A office spaces in Gurugram comes at a price between ₹7,000-₹10,000 per square foot. Compared to the same for Mumbai, ₹13,000-₹15,000, Gurugram becomes an attraction point for businesses. These high-paying jobs have also been causing an influx of professionals seeking better housing options.

3. Luxury and High-End Developments

Gurugram has become synonymous with luxury living. It includes state-of-the-art residential complexes, gated communities, and green-certified buildings. Properties in prime locations such as Golf Course Road and DLF Phase 5 have appreciated by more than 40% in the last five years. Developers are focusing on high-end amenities, such as rooftop pools, wellness centers, and sustainable energy solutions, which fetch an average price between ₹12,000 and ₹15,000 per square foot in these locations. The reason behind such high prices of real estate is the demand for such elite properties.

4. Investor Confidence and High ROI

The real estate market of Gurugram holds promising returns on investment, because of steady demand and a relatively high rental yield. While residential properties in Gurugram give rental yields in the range of 3-4%, in Mumbai, the average yield is around 2-3%. For commercial property, rental yields can reach as high as 8-10% in Gurugram. Investors, domestic and international, are attracted to the city for its growth potential. Though stable, Mumbai often gives a lesser ROI because of the saturation of the market; Gurugram, therefore, presents a better alternative.

5. Emerging Residential Hotspots

DLF, Sohna – Golf Course Road, DLF Cyber City, and Sohna Road have emerged as premium residential and commercial hotspots. Adding the planned developments, such as New Gurugram, and including emerging areas like Omaxe Dwarka Sector 19B, where an international stadium is coming up after 140 years, situated at the border of Gurugram and connected with the Dwarka Expressway, demand will surely gain more in these hotspots. This trend is likely to continue increasing property rates in these places.

During the past three years, the property rate in the aforementioned hotspots has appreciated by 25 to 35%. Since there is only so much land in these desired locations, prices have rapidly gone up with a few even going up to ₹20,000/sq ft.

Conclusion

Gurugram transformed very rapidly into a city like a modern urban center. This has established an emerging real estate market with an extraordinary rise in property prices. It differs from other cities, especially Mumbai, by the reasons of developments such as infrastructure, increasing business ecosystem, luxury offer, and high investor confidence. Long-term growth and a luxurious lifestyle make Gurugram the city to be observed.