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Market analyst Vishal Bhargava explained that while rents in Bengaluru and Gurugram were similar, property prices in Gurugram were “30 percent higher” than in Bengaluru.
Gurugram follows a short and medium-term goal. (Representative image)
Gurugram’s real estate market has been compared to a “house of cards” that is on the verge of collapse. The key factors at play behind this meltdown are a mounting liquidity crisis and the “sell on launch” model. Last month, real estate analyst Vishal Bhargava dropped a video on X explaining the faltering model that has been dominating Gurugram’s housing scene lately. His post caters to individuals who are on a house hunt in the city.
In the clip, Vishal Bhargava says, “Gurugram’s real estate market is now a house of cards. All it needs is a small push for many projects to crumble. For people not keeping track, home prices in Gurugram are up three times since 2021 and a big reason for it is dangerous speculation.” To help viewers understand better, Mr Bhargava drew comparisons between Bengaluru and Gurugram properties.
He explained that while rents in both metropolitan cities were similar, the property prices were different. Elaborating on the matter, Vishal Bhargava revealed that the cost of property in Gurugram was “30 percent higher” than in Bengaluru. Reason? “There is a short and medium-term goal in Gurugram real estate. The short-term goal is that the project launch must sell out on day one. The medium-term goal is that home prices must keep rising.”
Vishal Bhargava continued that, unlike in cities like Mumbai and Bengaluru, where properties are primarily bought by residents or long-term investors, the property market in Gurugram is overseen by traders who usually book multiple units with minimal upfront capital.
“Investors are next in the priority list. End users are as important as a script in a Salman Khan movie. Builders love traders, and they offer three incentives to them. This is under a common scheme called the first transfer free,” said the market expert.
Citing why builders prefer traders over investors, Vishal Bhargava added, “If an investor has five crores, he’ll probably buy one apartment for five crores. But a trader who has five crores will book five apartments of five crores by making an upfront payment of one crore per apartment. He doesn’t have the money. He’s just doing an F&O trade.”
Social media users agreed with Vishal Bhargava in the comments section. The post has so far received over 1.5 million views.
A team of writers at News18.com bring you stories on what’s creating the buzz on the Internet while exploring science, cricket, tech, gender, Bollywood, and culture.
A team of writers at News18.com bring you stories on what’s creating the buzz on the Internet while exploring science, cricket, tech, gender, Bollywood, and culture.
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Delhi, India, India
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