The Haryana government’s law reserving 75% of private sector jobs with monthly pay of up to Rs 50,000 for people of the state will impact Gurugram’s real estate sector and accelerate the trend of companies shifting to Noida due to high costs, industry experts said.
The law will affect both office space and residential property in the Gurugram market, which had started showing signs of recovery after being hit by the Covid-19 pandemic, according to real estate developers and international property consultants.
Noida had overtaken Gurugram in terms of share of office space leasing in the National Capital Region in the past few months and is set to gain further following the move by the Haryana government.
“Many cities in India flourished due to highly talented and hard-working immigrants. The increasing trend of having reservation for domicile workers in private organisations can seriously impact residential and commercial sector real estate growth in many cities of India,” said Anuranjan Mohnot, managing director of Lumos Alternate Investment Advisors.
“Though the judiciary will finally decide on constitutionality of such legislation, such proposals may seriously dent ease of doing
business in India. It can impact foreign direct investments in sectors like IT and also the government’s own policies of ‘one nation, one market’ get questioned,” Mohnot added.
