Gurugram's residential property market is rapidly becoming unaffordable for even high-income salaried professionals, as property prices continue to climb faster than household incomes, according to a recent report by CBRE Research. The city's residential affordability has reached a critical juncture, with the average EMI-to-income ratio projected to rise from approximately 20% in 2021 to nearly 40% by the end of 2025. This makes homeownership significantly more expensive, despite easier access to home loans.
Affordability Index Highlights Deterioration
CBRE's affordability index, which analyzes households earning ₹80 lakh and ₹1 crore annually, reveals a sharp decline in affordability between 2021 and 2025, stabilizing at around 38-40% through 2028. The report attributes this trend primarily to sustained capital appreciation in property values, which is expected to negate any significant gains from income growth.
For households with an annual income of ₹80 lakh, the analysis considers the purchase of a 3-BHK apartment ranging from 2,250 to 3,700 sq. ft., with prices between ₹8,500 and ₹19,000 per sq. ft. Meanwhile, for those earning ₹1 crore annually, affordability calculations are based on a 4-BHK unit spanning 3,000 to 4,300 sq. ft., priced from ₹9,500 to ₹23,000 per sq. ft.
Increased Access to Housing Finance Amid Rising Costs
Paradoxically, while buying a home has become more costly, financing options have become more accessible. Outstanding residential home loan deployment across India has nearly tripled, growing from ₹11.59 trillion in FY2019 to ₹32.78 trillion in FY2026. This expansion in credit availability, coupled with rising household incomes, has helped sustain housing demand despite the escalating property prices.
Gurugram's Robust Residential Growth Cycle
The affordability challenge emerges against the backdrop of Gurugram's strongest-ever residential expansion. Since 2000, developers have launched over 320,000 housing units in the city. The period between 2021 and 2025 stands out as the most robust five-year cycle, with housing sales consistently surpassing new launches, indicating strong end-user demand and limited inventory accumulation. As of the first quarter of 2026, Gurugram boasts approximately 207,000 completed residential units, with an additional 121,000 units currently under construction, underscoring the city's continuous development pipeline.
Shifting Residential Geography
Gurugram's residential landscape has significantly evolved over the past two decades. Before 2005, housing activity was concentrated around Golf Course Road and Sohna Road. From 2005 to 2015, development expanded into newer micro-markets such as Golf Course Extension Road, Northern Peripheral Road (NPR), and Peripheral Gurugram. In the last decade, these peripheral locations have become primary drivers of residential growth, with Northern Peripheral Road, Peripheral Gurugram, Extended Golf Course Road, and Southern Peripheral Road emerging as key residential corridors. The operationalization of the Dwarka Expressway in 2024 has further enhanced the appeal of these micro-markets by improving regional connectivity.
Growth in Luxury and Senior Living
The city is also witnessing an increase in luxury housing, with developers collaborating with global hospitality and lifestyle brands like Trump, Westin, and Elie Saab for branded residences. Additionally, there's growing interest in senior living communities, driven by changing family structures, an aging population, and supportive government policies. Developers such as Max Estates, Silverglades, Pioneer Urban, and Lamose Group have entered this segment, with DLF also planning future senior living projects.