You've probably heard that Gurgaon is a great place for real estate investment. Like many others, you might be curious why is it so. Let me explain why Gurgaon is such a smart choice for investing. There are several reasons supporting, investment in the Gurgaon real estate market. But first, let’s look at the situation of real estate in India.
High Return on Investment:
Back in 2017, the real estate market in India was worth ₹10 lakh crore. By 2025, it's expected to reach ₹54 lakh crore. That's more than four times bigger in just eight years! By 2047, it could grow to an incredible ₹480 lakh crore. These huge numbers show that India's real estate market is multiplying, and it's expected to grow at 10-12% per year from 2022 to 2030. Thus, investing in real estate in India can give you better returns than other traditional investments.
Great market potential:
To understand the potential of India’s real estate market, let's compare India, a developing country to China, a developed country. In China, the demand for housing is low because urbanization is slow, developers have taken on too much debt, and people’s incomes aren't growing much. The fact that China is a developed country, and the real estate sector has already contributed to its development with approx. 30% share in the country’s GDP, leading to very little potential for the market. India, on the other hand, is still developing. Right now, real estate contributes about 7% to India's GDP, but it’s expected to grow to 17% by 2047. More people are moving to cities in India, creating a higher demand for housing. Strong developers, good government support, and rising incomes ensure a good market potential. Now, coming to the ‘why you should invest in Gurgaon’ topic. Let’s discuss some of the interesting facts about Gurgaon.
Increasing Property Demands:
Gurugram's population is expected to reach 42 lakhs by 2031. This means about 4.4 lakh new families will need homes by then, but only 2.1 lakh new homes are expected to be built by 2027, with an average of 55,000 homes per year. This creates a deficit of 2.2 lakh+ units. Shows the mismatch in supply and demand resulting in price hikes.
Strong Cooperate Presence:
Gurgaon offers 60% of office spaces with headquarters of 350+ Fortune 500 companies. Gurugram is also, the 9th biggest income tax-paying city and is growing at the average rate of 20%. This means Gurgaon’s great location, good infrastructure, and many job opportunities make it attractive for both investors and homebuyers.
Rising HNI Investors:
Gurgaon is expected to see an addition of 30,000-40,000 high net-worth Individuals and ultra-high-net-worth individual families in the next 3 years (2024-2026)
Seamless connectivity:
Gurugram is close to Delhi and has many multinational companies and tech hubs. Gurgaon also has excellent connectivity with good roads, metro services, and the Indira Gandhi International Airport, making it easy to get to.
Price Appreciation:
The time required for property price appreciation is lowest in Gurugram (12-24 months) The list goes on. So, to cut it short, investing in Gurugram is a deal of gold. Craig Hall once said that investing in real estate is all about timing and no doubt that golden time is now.