Gurgaon real estate rejig likely as Haryana seeks info on errant firms

Amid delayed deliveries putting off investors, stern action could be taken against defaulting developers

The landscape of Gurgaon’s real estate market, one of the biggest in India, is likely to see a change under a new government at the helm of affairs in Haryana. After the recently formed Bharatiya Janata Party (BJP)-led state government sought information on errant developers, officials are learnt to have contacted consultants for details. Based on the information procured, sources say, the state wants to adopt a new approach for the real estate sector.

In line with the BJP-led central government’s focus on ‘Housing for all by 2022’, the state government is also concerned about a phenomenal rise in prices of residential property in Gurgaon.

The development comes even as the real estate sector is in the midst of a slowdown and facing sales decline over the past few years. Property buyers have been facing long delays in delivery, mainly in the National Capital Region, resulting in investors moving away.

“To revive faith among buyers, the state government has sought information on specific developers who have been playing truant with customers,” said a person involved in the process. A stern action is also believed to be on the cards for those that have defaulted on delivery.

Gurgaon and Mumbai, the two biggest real estate markets in India, typically draw huge investor interest.

So far known as a destination for premium and luxury properties, Gurgaon is fast emerging as a hub for homes costing between Rs 10 lakh and Rs 20 lakh, with developers lining up a number of projects under the Haryana government’s affordable housing policy.

As of September this year, the state government had received as many as 122 applications from developers for launching affordable housing projects under a policy unveiled last year. Till September, 63 applications had been received for Gurgaon alone, and 16 came for Sohna (extension of Gurgaon).

According to experts, Gurgaon will see a lot of action in the near future, both in luxury and affordable markets. “The new state government in Haryana has to ensure things now move ahead smoothly, with policy changes and other initiatives required to give a thrust to the sector,” a consultant said.