Gurgaon Real Estate Stagnates Amid Infrastructure Issues
Gurgaon's real estate market is facing a significant slowdown due to frequent infrastructure failures, pushing potential buyers towards Noida. Explore the impact of these issues on the property market and the city's development.
Gurgaon Real EstateInfrastructure CollapseNoida Real EstateProperty MarketInvestmentReal Estate NewsSep 08, 2025
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 or 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.
Frequently Asked Questions
What is the main reason for the slowdown in Gurgaon's real estate market?
The main reason for the slowdown in Gurgaon's real estate market is the frequent infrastructure failures, such as poor drainage systems and potholes, which have made the city less appealing to potential buyers.
How is Noida benefiting from Gurgaon's infrastructure issues?
Noida is benefiting from Gurgaon's infrastructure issues as it has better infrastructure and an upcoming airport, making it a more attractive option for investors and buyers.
What are the micro-markets in Gurgaon that are affected by poor infrastructure?
Micro-markets in Gurgaon that are affected by poor infrastructure include Golf Course Road, Golf Course Road Extension, and Southern Peripheral Road (SPR). These areas have high-end properties but are full of potholes and other infrastructure issues.
How are developers and investors responding to the current market conditions?
Developers and investors are recalibrating their strategies, recalibrating launches and pricing to aim for more balanced conditions by late 2025. Many investors are struggling to pay instalments on properties they bought for short-term gains.
What role does the government play in addressing Gurgaon's infrastructure issues?
The government plays a crucial role in addressing Gurgaon's infrastructure issues. There have been requests for the government to provide more development support to Gurgaon, which is the biggest source of revenue for the Haryana government.
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