Even Mumbai property brokers are stunned. CA explains why Gurgaon flat prices are going wild

The Gurgaon real estate market continues to surge, and according to chartered accountant Nitin Kaushik, there’s little sign of it slowing down. He believes the sharp rise in property prices is also being fueled by aggressive buying from NRIs and investors who are holding on to premium inventory. Despite market fluctuations elsewhere, he asserts that the city is experiencing a rare kind of scarcity economics — one driven by a persistent lack of supply. Kaushik points out that those expecting a price correction may be in for disappointment, as Gurgaon’s transformation into a high-end luxury real estate hub is firmly underway.

This reality is being felt by homebuyers on the ground. A recent viral Reddit post by a Gurgaon resident highlighted just how difficult it has become to afford a home in the city — even with a sizable budget. The user described struggling to purchase a 3BHK apartment in a popular society far away in Gurgaon suburbs despite having Rs 1.8 crore to spend. Their story resonated with many urban dwellers facing a similar situation.

Recent data supports this trend. According to an ET report, Gurugram has seen the sharpest price appreciation among metro cities in the post-pandemic period, with a compound annual growth rate (CAGR) of over 20%.

For almost a decade (2014-2021), Gurgaon’s real estate market was starved of new launches. Developers weren’t building, buyers had lost faith in under-construction projects, and even today’s gold standards—Camellias & Crest—were tough to sell.

Then came RERA. Trust returned,…

— CA Nitin Kaushik (@Finance_Bareek) April 16, 2025

What changed in Gurgaon
Unlike cities like Mumbai or Bengaluru, where new project launches have been more consistent, Gurgaon suffered a prolonged phase of low development between 2014 and 2021, CA Nitin Kaushik said . Developers held back, buyers lost faith in under-construction projects, and premium offerings remained limited, he adeed.

But later, Gurgaon transitioned from a mid-income buyer’s market to a battleground for luxury real estate. Ultra-high-net-worth individuals, disenchanted with Delhi’s traffic congestion and lack of high-end societies, began flocking to Gurgaon, drawn by its premium gated communities and upscale societies, Nitin Kaushik said.

This shift has dramatically altered the supply-demand equation. While cities like Mumbai have maintained a steady pipeline of new developments, Gurgaon is still playing catch-up. The mismatch has created intense pressure on premium inventory, leading to skyrocketing prices.

However, developers are rushing in to capitalize on the demand. In 2024 alone, new project launches in Gurugram reached a record Rs 88,000 crore — nearly double the Rs 45,000 crore seen in 2023, according to an ET report. But the number of projects actually declined, underscoring the focus on high-ticket developments rather than volume.

"NRIs are buying. Domestic investors are holding. Even with stock market fluctuations, premium inventory is nearly impossible to find. Mumbai brokers are still baffled by Gurgaon’s surge. This isn’t a hype-driven market—it’s pure scarcity economics. But a wave of mid-tier inventory is coming, and the smartest buyers won’t fall for
FOMO. They’ll buy value," he said.

Note of caution
Despite developers’ claims that the market is driven by end users, many industry insiders say otherwise. According to an expert quoted in an ET report, nearly 60–65% of current demand in Gurugram is from investors, not occupants.