The property rates in Gurgaon are sky rocketing for sure. But does that means demand for property is really high in the city? If a recent survey carried out by a district administration of Gurgaon has to be believed, the truth is completely the other way around. This survey suggests that there are around 25-30 percent housing units currently lying vacant, with many more being constructed in Gurgaon. This fake property bubble seems to be the work builder lobby active in Gurgaon.
How The Bubble Got Created?
The real estate of Gurgaon is majorly an investor driven market. Statistically speaking, nearly 70 percent of revenue here comes from investors. This means that the private builders in Gurgaon will do everything to keep the investors interested for a longer period. If one tracks the recent infrastructural development in Gurgaon, he/she will get to know that numerous housing projects have come up in last few years with many more in waiting. These high-end housing projects offers lavish lifestyle to the end-users and attract investors in plenty. This portrays Gurgaon as a hot destination for investment which ultimately gives boost to the property rates in Gurgaon.
The Implication
If we see this scenario from the eyes of a property dealer everything seems to be positive. But the fakeness and hollowness of this whole process will soon be out in public with its own implications. Firstly, this false supply of housing units will not be able to hold in the investors for long. Secondly, the property rates in Gurgaon that are currently off the ceiling will come down tumbling faster than the rate at which they went up. The cost of property in posh localities of Gurgaon was already out of bound for a common man and with many expensive housing projects coming up on the outskirts the small time investors will again feel betrayed.
The Solution
As per the property experts, first thing needed to be done, is bring down the soaring property rates in Gurgaon. This will help in regaining the confidence of small time investors and honestly project the Real Estate of Gurgaon. To do that the Government housing project, HUDA (Haryana Urban Development Authority), needs to speed-up the development work in newer sectors of Gurgaon. This will pose a threat to the private builders and offer the home buyers with affordable accommodation. The Government should also setup a regulatory body to keep a check on the private builders. Once these steps are taken by the Government the property rates will automatically come down in Gurgaon.
