Gurugram's Real Estate Boom: How Traders Are Driving the Market
Gurugram's housing market is increasingly dominated by fast-trading buyers who are driving up prices and creating new affordability concerns.
GurugramReal EstateHousing MarketTradersReraReal Estate NewsJun 30, 2025
This otherwise well-known trend within real estate circles took on renewed public interest after a video went viral, wherein real estate commentator Vishal Bhargava described Gurugram’s market as “a gripping movie with a bad ending”.
He explained that unlike Mumbai or Bangalore, where most buyers are either end-users or investors, Gurugram’s ecosystem gives centre stage to traders, people who buy units during launch and sell them off quickly, often before making the next payment.
Why builders prefer traders over investors
“Builders love traders,” Bhargava said. “They offer three incentives. First, a small down payment that traders can afford. Second, a payment plan where the next instalment is due one to two years later. Third, they allow the unit to be resold before the next payment is due under a scheme called ‘first transfer free’.”
The logic, he said, is straightforward. “If an investor has Rs 5 crore, they buy one apartment. A trader with the same Rs 5 crore can book five apartments by paying just Rs 1 crore per unit upfront. They don’t have the money for all five, but they’re not planning to hold long either.”
According to Bhargava, these early traders create the illusion of a blockbuster sell-out. “That boosts hype and marketing. Prices jump. A unit booked for Rs 5 crore can be sold for Rs 6 crore in three months. With Rs 1 crore invested, the trader earns Rs 1 crore— 100 per cent return.”
Who are these traders and how do they operate
Dr Prashant Thakur, regional director and head, research and advisory at ANAROCK Group, said traders are entirely different from investors or genuine homebuyers.
“A real estate trader purchases properties solely for short-term resale gains. They usually exit within months. Their model is about price arbitrage, not rental income or long-term appreciation,” Thakur told Business Standard.
He added, “They never intend to live in the property. They operate with minimal capital, using builder schemes to control multiple units at once. Their profitability depends entirely on market momentum.”
Builder schemes encourage speculative flipping
According to Thakur, payment plans like 10:90, low booking amounts, and “first transfer free” clauses are structured to support trading behaviour.
In real estate, a 10:90 payment plan means the buyer pays 10 per cent of the property's cost upfront, and the remaining 90 per cent upon possession. This plan defers the bulk of the payment until the property is ready for handover, reducing the initial financial burden on the buyer.
“These schemes are meant to accelerate sales during construction and improve cash flow. By allowing traders to block multiple units with minimal capital, builders simulate high demand,” he said.
Such artificial demand becomes a marketing tool. “Builders can showcase strong early sales, attract genuine buyers, and even secure better financing,” Thakur said.
What happens when prices stop climbing
Thakur warned that the trader model depends entirely on rising prices. “When price growth stalls, traders are stuck. They can’t exit and often default on the next instalments. Builders are left holding unsold stock midway through the project.”
This creates knock-on effects. “Resale units at lower prices hurt sentiment. Cash flow dries up. Construction delays follow. End-users suffer, even though they had nothing to do with the trading activity,” Thakur said.
How traders inflate prices and crowd out buyers
“Traders artificially inflate demand during launch,” said Thakur. “That pushes prices beyond what the location or project deserves. They usually take the best units—corner flats, higher floors—leaving end-users with leftovers at inflated rates.”
The impact spreads beyond the project. “Neighbouring prices adjust to the new inflated benchmark, distorting the micro-market,” he said.
Spotting trader-heavy projects before you book
Thakur advised buyers to look for certain patterns. “Extremely flexible payment terms, early sell-outs, and schemes that support easy transfer are signs.”
He added, “End-users should watch for resale listings shortly after launch. That’s often a sign of speculative presence. Projects by reputed builders with stricter payment schedules and better delivery records are safer bets.”
Builders not legally bound to disclose trader deals
Raghav Malhotra, founder and director at PRIME Developments, said there’s no legal requirement under Rera for builders to disclose whether “first transfer free” or bulk trader bookings are allowed.
“While RERA requires full disclosure on layout, timelines, and approvals, it doesn’t force builders to reveal if they’ve signed special deals with traders,” Malhotra told Business Standard.
Buyers can seek written clarity, but it’s not mandatory for builders to provide it proactively, he added.
Legal risks of buying units flipped by traders
Malhotra said problems may arise if transfers were not properly documented. “If any prior transaction wasn’t officially registered, you may face delays in registration or even ownership disputes,” he said.
“There’s also the risk of incomplete documentation or hidden liabilities. If a trader sold the same unit to multiple people, fraudulent claims can surface.”
No legal ban on speculative trading under Rera
Akshat Pande, managing partner at Alpha Partners, said, “There’s no law banning speculative trading. Rera has checks for overbooking and compliance, but nothing stops a trader from buying and flipping units.”
He warned that if the trader defaults and the builder is financially affected, delays can occur even for genuine buyers.
Legal remedies if things go wrong
Suhael Buttan, partner at SKV Law Offices, said Rera protects buyers even if the builder blames trader defaults.
“Section 18 mandates a refund with interest if the promoter fails to deliver possession. Section 19(4) lets buyers claim refunds if there’s non-compliance,” he said.
“The builder can’t use trader default as a blanket excuse. Each buyer’s rights stand independently.”
Buttan pointed to past Rera rulings. “In one case, Gujarat Rera took suo motu action against a builder who accepted booking tokens before registration. In another, Haryana Rera forced a refund with 10.45 per cent annual interest to a buyer misled by pre-launch sales.”
Such precedents suggest that Rera will act if builders misuse schemes to fake demand or fast-track sales without proper approval.
Gurugram's rising home prices
According to ANAROCK, residential prices in the National Capital Region rose by 81 per cent between Q1 2020 and Q1 2025. Gurugram alone saw an 84 per cent increase—from Rs 6,150 per sq. ft. to Rs 11,300.
ANAROCK Research noted that average residential prices in Gurugram stood at around Rs 6,200 per sq. ft. in 2021, rising to approximately Rs 11,900 per sq. ft. by Q2 2025— a 92 per cent jump over four years.
The sharpest rise came in 2024, when prices increased by 30 per cent year-on-year, from Rs 7,660 per sq. ft. in 2023 to Rs 9,980 in 2024. This spike, the firm said, coincided with a surge in new launches within the luxury segment—homes priced above Rs 1.5 crore.
Data from NoBroker showed average flat prices in Gurugram have reached:
1BHK: Rs 48 lakh
2BHK: Rs 89 lakh
3BHK: Rs 3.7 crore
4BHK: Rs 5.2 crore
Frequently Asked Questions
What is the role of traders in Gurugram's real estate market?
Traders in Gurugram's real estate market buy units during launch and sell them quickly, often before making the next payment. They aim to profit from short-term price increases, creating an illusion of high demand and driving up prices.
How do builders benefit from traders?
Builders benefit from traders by offering flexible payment plans and schemes that allow early resale. This helps simulate high demand, accelerates sales during construction, and improves cash flow.
What are the risks for genuine homebuyers in trader-heavy projects?
Genuine homebuyers in trader-heavy projects face risks such as inflated prices, lower quality units, and potential delays in construction if traders default on payments.
What legal protections are available to buyers under Rera?
Under Rera, buyers are protected by sections such as Section 18, which mandates a refund with interest if the promoter fails to deliver possession, and Section 19(4), which allows buyers to claim refunds in case of non-compliance.
How have residential prices in Gurugram changed over the past few years?
Residential prices in Gurugram have increased significantly, rising by 84 per cent from Rs 6,150 per sq. ft. in 2020 to Rs 11,300 per sq. ft. in 2025. The sharpest rise came in 2024, with a 30 per cent increase year-on-year.
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