Why Gurugram's Real Estate Market is Teetering on the Brink of Collapse
Gurugram's real estate market is facing a liquidity crisis and a speculative 'sell on launch' model, leading experts to predict a potential collapse. Here's what you need to know.
Real EstateGurugramProperty MarketLiquidity CrisisSpeculationReal Estate NewsJun 26, 2025
In the clip, Vishal Bhargava states, “Gurugram’s real estate market is now a house of cards. All it needs is a small push for many projects to crumble. For people not keeping track, home prices in Gurugram are up three times since 2021, and a big reason for this is dangerous speculation.” To help viewers understand better, Mr. Bhargava drew comparisons between Bengaluru and Gurugram properties.
He explained that while rents in both metropolitan cities are similar, the property prices are different. Elaborating on the matter, Vishal Bhargava revealed that the cost of property in Gurugram is “30 percent higher” than in Bengaluru. The reason? “There is a short and medium-term goal in Gurugram real estate. The short-term goal is that the project launch must sell out on day one. The medium-term goal is that home prices must keep rising.”
Vishal Bhargava continued by noting that, unlike in cities like Mumbai and Bengaluru, where properties are primarily bought by residents or long-term investors, the property market in Gurugram is overseen by traders who usually book multiple units with minimal upfront capital. “Investors are next in the priority list. End users are as important as a script in a Salman Khan movie. Builders love traders, and they offer three incentives to them. This is under a common scheme called the first transfer free,” said the market expert.
Citing why builders prefer traders over investors, Vishal Bhargava added, “If an investor has five crores, he’ll probably buy one apartment for five crores. But a trader who has five crores will book five apartments of five crores by making an upfront payment of one crore per apartment. He doesn’t have the money. He’s just doing an F&O trade.”
Social media users agreed with Vishal Bhargava in the comments section. The post has so far received over 1.5 million views.
Gurugram’s real estate market has been a hot topic of discussion, and the insights provided by Vishal Bhargava offer a critical perspective on the potential risks involved. For those considering purchasing property in Gurugram, it’s essential to be aware of these dynamics and the potential for market instability.
Frequently Asked Questions
What is the 'sell on launch' model in Gurugram's real estate market?
The 'sell on launch' model in Gurugram's real estate market refers to the practice where properties are sold out quickly on the day of their launch, often to traders who book multiple units with minimal upfront capital.
Why are property prices in Gurugram 30 percent higher than in Bengaluru?
Property prices in Gurugram are 30 percent higher than in Bengaluru due to speculative buying and a focus on short-term goals, such as selling out projects on launch day and ensuring continuous price increases.
What are the risks associated with the 'house of cards' analogy for Gurugram's real estate market?
The 'house of cards' analogy highlights the risks of a market that is heavily reliant on speculative buying and a lack of long-term stability. A small push, such as a liquidity crisis, could lead to a collapse of many projects.
How do builders in Gurugram incentivize traders?
Builders in Gurugram incentivize traders by offering schemes like 'first transfer free,' which allows traders to book multiple units with minimal upfront capital and sell them off for a profit.
What should potential homebuyers in Gurugram be aware of?
Potential homebuyers in Gurugram should be aware of the speculative nature of the market, the potential for price instability, and the risks associated with a market that prioritizes short-term gains over long-term stability.
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