Gurgaon's Real Estate Struggles as Infrastructure Fails to Keep Pace
Gurgaon's real estate market is facing a significant slowdown due to repeated infrastructure failures, particularly during the monsoon season. This has led to a decline in site visits and sales, with many buyers now considering Noida as a better alternative.
GurgaonReal EstateInfrastructureMonsoonNoidaReal EstateSep 07, 2025
Experts said that with better infrastructure and the upcoming airport, Noida may gain over Gurgaon. Praveen Jain, chairman emeritus of the National Real Estate Development Council, stated, '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.'
There have been several 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, according to Ashok Kapur, chairman of 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. Vipin Sharma, chairman and founder of Gurgaon-based Aarize Group, emphasized, '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.'
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 issue affecting Gurgaon's real estate market?
The main issue is the repeated infrastructure failures, particularly during the monsoon season, which have led to a decline in site visits and sales.
How is Noida benefiting from Gurgaon's infrastructure issues?
Noida is gaining over Gurgaon due to better infrastructure and the upcoming airport, which is attracting more buyers and investors.
What are the key micro-markets affected by infrastructure issues in Gurgaon?
Key micro-markets affected include Golf Course Road, Golf Course Road Extension, and Southern Peripheral Road (SPR), where potholes and poor infrastructure are common.
What impact have heavy monsoon rains had on Gurgaon's infrastructure?
Heavy monsoon rains have strained drainage systems and added to traffic congestion, leading to repeated standstills and delays in road and civic upgrades.
What are the future prospects for Gurgaon's real estate market?
Developers are likely to recalibrate launches and pricing, aiming for more balanced conditions by late 2025, as sustained price hikes and global uncertainties have impacted market momentum.
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