Gurgaon, a major player in the Indian real estate sector, has been dealing with tough times, especially since 2015, and in 2016 property sales volumes in Gurgaon fell further and new unit launches were limited in the city. .

Furthermore, the demonetization at the end of 2016 further affected developers in Gurgaon as in the rest of the country. Stability was noted in quoted prices and discounts were still available but people stayed away from buying residential flats in Gurgaon. Gurgaon saw a drop in residential property investment as residential buyers, many of whom were prime end-users, sought out move-in ready flats and were wary of promises of future infrastructure or property. In general, the Gurgaon market experienced a big drop recently.

With the new budget placing affordable housing in the infrastructure category, the government plans to move closer to its goal of providing affordable housing for all by 2022. This newly awarded infrastructure status also makes cheaper financing options available from home builders. real estate that can now access funds at a loan rate of less than 10% for the development of affordable housing, leading to a subsequent and definitive reduction in purchase costs for home buyers.

About 95% of the demand in real estate has been for affordable housing. With reduced debt ratios, real estate developers can now focus on building housing projects where demand is high and expect healthy growth in this segment.

The budget has benefited the end users more. With huge tax breaks being offered to people with the lowest incomes as an important tool in boosting affordable housing, the dream of many of owning a home now seems closer to reality. Also, with demonetization, banks have been further inundated with funds, and there is speculation that banks will further lower interest rates and get affordable and attractive home loans. Prospective home buyers have been watching the market closely.

As a real estate market, Gurgaon has a strong chance of recovering from the downtime of the recent past. One of its driving strengths has been its ability to produce high-quality office space, and now, while building on this strength, if developers in Gurgaon prioritize building and launching affordable, move-in ready housing projects than consumers end value. value and subsequently reward, then Gurgaon will soon emerge as a strong provider of real estate to meet the housing needs of its residents.