Is Gurugram surpassing Mumbai in luxury real estate?

Gurugram vs. Mumbai: In the real estate market, the battle for supremacy in premium and luxury housing is heating up between Mumbai and Gurugram. While Mumbai has long been the financial hub of India, drawing significant high-end real estate investments, Gurugram is quickly emerging as a serious contender.

Experts suggest that Gurugram's rapid development and growing appeal in the premium segment could soon see it challenging Mumbai's dominance.

In the wake of the pandemic, the Gurugram real estate market has outshined all other Indian metropolitan cities as a lucrative and sustainable option.

"A comparative analysis of the real estate markets, reveals that there are notable advantages offered by Gurugram, which give it the edge as the most coveted real estate hub in India due to its return on investment (ROI), infrastructure,  job opportunities, connectivity, and cosmopolitan lifestyle offerings," said Pradeep Kumar Aggarwal, Founder and Chairman, Signature Global.

Booming Gurugram hotspots

Gurugram's premium real estate market has demonstrated a robust growth trajectory, particularly in regions such as Dwarka Expressway, New Gurugram, and Southern Peripheral Road (SPR). Post-pandemic, property prices in these areas have appreciated by 25 to 30 per cent, according to Anarock data.

This appreciation outpaces many segments in Mumbai, making Gurugram a lucrative option for investors. JLL India's India Real Estate Market Outlook report highlights that the ROI in Gurugram's prime sectors is amongst the highest in the country, making it an attractive destination for premium housing investments. The pent-up demand in Gurugram is working in confluence with supply constraints and continues to drive property values upwards across various micro-markets in the Millennium City.

For instance, the Dwarka Expressway and SPR have seen a marked increase in property values due to their strategic location and connectivity advantages with the rest of the National Capital Region. Gurugram's housing market has seen a dramatic increase in new launches, with the PropIndex Report 2024 reporting a total of 11,270 housing units launched in 2023 across various segments.

Corroborated by Housing.com, this figure represents 69 per cent of all launches in Gurugram, marking a staggering 166 per cent increase from the previous year. Despite this substantial growth, the demand continues to outpace supply, keeping the market competitive and lucrative.

Gateway of convenience

One of the critical drivers of Gurugram's real estate appeal is its infrastructure and connectivity, which make it the gateway of convenience for the next generation of millennial homebuyers. The city is rapidly evolving with substantial investments in its infrastructure, including the development of the Dwarka Expressway and extensions to the Metro and Regional Rapid Transit System (RRTS).

These projects are set to enhance connectivity within Gurugram and with neighbouring regions, thereby improving accessibility and quality of life for the residents of Gurugram. This will not only provide seamless public transportation options but also make commuting more convenient than ever before in Gurugram.

"The infrastructure in Gurugram rivals, and in some cases, surpasses that of Mumbai. Unlike many parts of Mumbai, Gurugram boasts modern living spaces and well-planned housing societies that attract a diverse demographic, including professionals and expatriates. These infrastructural advancements not only uplift the living standards but also drive up property values, ensuring a high return on investment (ROI) for homebuyers," Aggarwal added.

The Dwarka Expressway has notably reduced travel time to Delhi and the Indira Gandhi International Airport. The Rapid Metro network further enhances intra-city connectivity, making daily commutes seamless. Mumbai, while having a well-established transport network, often grapples with congestion and an overcrowded public transport system.

Gurugram is meticulously well-connected through an extensive network of highways, including NH 8, which links Gurugram to Delhi and Jaipur. In contrast, Gurugram's evolving transport infrastructure promises a smoother and more efficient travel experience for its residents, contributing to the overall attractiveness of the city for premium homebuyers.

Cost-effective glamour

According to an Anorock report published in collaboration with the Confederation of Indian Industry (CII), the cost of premium housing in Gurugram and Mumbai, Gurugram presents a more attractive proposition.

In contrast, while Mumbai remains one of the most expensive real estate markets in India, its high property prices pose a challenge for many potential buyers. The average price per square foot in prime areas of Gurugram ranges from Rs 8,000 to Rs 14,000, whereas in Mumbai, it can soar up to Rs 25,000 to Rs 45,000 in similarly premium localities like South Mumbai and Bandra.

The price disparity highlights the affordability and value for money that Gurugram offers to luxury homebuyers. The high entry cost in Mumbai can be a deterrent, especially when compared to the more reasonable yet appreciating property prices in Gurugram.

"While the property price appreciation potential in Gurugram, driven by continuous infrastructure upgrades and a thriving corporate environment, makes it a smarter investment choice," Aggarwal said.

Global MNCs make Gurugram a corporate magnet

Gurugram has emerged as a corporate magnet, attracting some of the world's largest MNCs, which has, in turn, driven the demand for luxury housing. The city’s job market is one of the primary factors contributing to its booming real estate sector. Companies such as Google, Microsoft, and American Express have set up significant operations in Gurugram, creating a high demand for premium residential properties.

Knight Frank reports indicate that the influx of these global corporations has resulted in a surge in the expatriate population and high-income professionals, thereby pushing up the demand for high-end real estate. This trend contrasts with Mumbai, where, despite being a financial hub, the saturation of job opportunities in premium segments is relatively lower, and the cost of living is significantly higher. The relatively lower cost of living in Gurugram, coupled with high-paying job opportunities, makes it an attractive destination for professionals and their families.

Gurugram’s edge over Mumbai

While Mumbai will always hold an important place in India's real estate, Gurugram is steadily positioning itself as a more viable and profitable market for homebuyers and investors, say many experts.

"Gurugram offers better value for money, higher appreciation potential, and a superior living experience," said . "Gurugram's real estate market offers a blend of growth potential, quality living, and investment returns that are hard to match in the highly competitive and expensive Mumbai market," Goel added.
As Gurugram continues to develop and evolve, it promises to deliver sustainable returns and an enhanced living experience, solidifying its status as a leading destination for premium housing in India.