Gurugram races past Mumbai to become India’s luxury real estate capital

Gurugram, once known mainly for its agricultural roots, has undergone a dramatic transformation into a thriving urban hub. In its early days, the city struggled despite being close to Delhi, poor roads, frequent power cuts, and a lack of basic sanitation made development and settlement difficult. Fast forward to today, and Gurugram has become one of the most desirable places for homebuyers and investors, even challenging Mumbai’s position as India’s luxury real estate capital.

The Building Blocks of Growth

A turning point in Gurugram’s growth story came in 1977 with the establishment of the Haryana Urban Development Authority (HUDA). Tasked with planning and executing urban projects, HUDA laid the groundwork for large scale real estate activity. This encouraged private developers such as DLF, Ansal, and Unitech to enter the market and acquire land for residential and commercial projects. Their presence reshaped the city’s skyline and created a platform for future expansion.

By the early 2000s, Gurugram had become one of India’s fastest-growing real estate markets. The city’s rise as an IT and financial services hub attracted multinational corporations, and with them came a new wave of professionals in need of housing. Developers responded with mid-segment and luxury apartments, bringing in the concept of gated communities that soon became a hallmark of Gurugram’s urban lifestyle.

Infrastructure projects also played a critical role in this transformation. The construction of the Delhi-Gurgaon Expressway (NH-48) and the expansion of metro connectivity made the city far more accessible, further fuelling residential and commercial demand.

Gurugram’s Real Estate Market Today

Fast forward to today, Gurugram has firmly positioned itself as a luxury housing hub. Its reputation as the corporate capital of North India, hosting numerous international companies, continues to drive housing demand. Reflecting this confidence, real estate investments in the city surged to Rs 88,000 crore in 2024, nearly doubling from Rs 45,000 crore in 2023. This sharp rise underlines the optimism of developers and investors about Gurugram’s future.

Gurugram versus Mumbai

One of the most striking developments in recent years is Gurugram’s emergence as a serious competitor to Mumbai in luxury real estate. Homes priced above Rs 5 crore have become commonplace, with the average apartment size growing from 1,800 sq. ft to 2,600 sq. ft. As a result, the ticket size of properties has appreciated, making Gurugram the top destination for luxury buyers.

In 2024 alone, Gurugram recorded luxury home sales worth Rs 78,500 crore, accounting for nearly half of all luxury homes sold across India. By comparison, Mumbai saw sales of about Rs 28,000 crore in the same category. This disparity reflects not just pricing trends but also buyer preferences: while Mumbai’s compact, high-priced apartments cater to space constrained urban living, Gurugram offers sprawling layouts that appeal to families, NRIs, HNIs, and corporate leaders seeking larger homes.

Why Gurugram is Pulling Ahead

The numbers tell an even more compelling story. Between January 2020 and April 2025, property prices in Gurugram appreciated by an impressive 113.26%, far outpacing Mumbai’s growth of 42.30% over the same period. Unlike Mumbai, which is restricted by its landlocked geography and relies heavily on vertical development, Gurugram benefits from available land parcels, allowing developers to design larger homes with modern amenities. This combination of size, luxury, and lifestyle is what has enabled Gurugram to rapidly close the gap with Mumbai,  and in some segments, even surpass it.

(The author is co-founder & CPTO, NoBroker and ConvoZen.AI. Views are personal.)