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Gurugram: Interplay of Residential and Commercial Real Estate

Explore the interplay between Gurgaon’s residential and commercial real estate.

The high-end residential real estate market in Gurgaon has witnessed significant growth over the years, driven by its proximity to Delhi and modern infrastructure. Luxury housing prices in Gurgaon have appreciated by 15-20% annually over the past five years, making it an attractive investment destination. At the same time, the commercial real estate market in Gurgaon has grown by leaps and bounds as well.

We explore how the growth of both these segments is interlinked, with each driving demand for the other:

High-End Residential Real Estate:

1. Luxury housing supply: Gurgaon has seen a significant increase in luxury housing supply, with over 50,000 units launched in the past decade.

2. Demand from HNIs and expats: High-net-worth individuals (HNIs) and expats have driven demand for luxury housing in Gurgaon, attracted by the city’s proximity to Delhi and its modern infrastructure.

3. Price appreciation: Luxury housing prices in Gurgaon have appreciated significantly, with average prices increasing by 15-20% annually over the past five years.

Commercial Office Space:

1. Grade A office supply: Gurgaon has seen a significant increase in Grade A office supply, with over 10 million sq. ft. of new supply added in the past five years.

2. Demand from IT/ITES and MNCs: The IT/ITES sector and multinational corporations (MNCs) have driven demand for Grade A office space in Gurgaon, attracted by the city’s skilled workforce and modern infrastructure.

3. Rental growth: Office rentals in Gurgaon have witnessed significant growth, with average rentals increasing by 10-15% annually over the past five years.

Interlinked Growth:

1. Residential demand driven by office space: The growth of commercial office space in Gurgaon has driven demand for high-end residential real estate, as professionals and executives seek to live in close proximity to their workplaces.

2. Office space demand driven by residential growth: Conversely, the growth of high-end residential real estate in Gurgaon has driven demand for commercial office space, as residents seek amenities and services such as restaurants, retail, and entertainment options.

3. Synergies between residential and office developers: Many developers in Gurgaon have developed both residential and commercial projects, creating synergies between the two segments and driving growth in both areas.

In conclusion, the growth of high-end residential real estate and commercial office space in Gurgaon is interlinked, with each segment driving demand for the other. As Gurgaon continues to evolve as a major business hub, we can expect to see continued growth in both segments.

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