Impact of Information Technology Sector on Land Use and Land Markets: the case of Gurugram

Abstract

Gurugram, is a city in the northern Indian state of Haryana and is one of the fastestgrowing urban areas in India and has emerged as a major hub of information technology (IT). The IT sector in Gurugram started to develop in the late 1990s, when some multinational companies such as GE Capital, IBM, and Microsoft set up their offices in the city. The proximity to Delhi, the availability of land, infrastructure, and skilled workforce, and the favourable policies of the state government attracted more IT firms. Today, Gurgaon hosts over 1000 IT companies, ranging from small startups to large MNCs, and employs more than half a million people in the industry. Analysing the impact of Gurgaon's IT sector on land use and the land market is crucial for several reasons. Firstly, Gurgaon stands at the crossroads of a significant urban transformation driven by its booming IT industry. Understanding how this sector influences land use patterns is essential for policymakers, urban planners, and stakeholders to make informed decisions about the city's development. One key reason for this analysis is the pressing issue of affordable housing. Furthermore, examining the impact on the land market gradients is essential as well. The IT sector's influence on market mechanisms can affect property values, investment patterns, and overall economic growth. Understanding these changes is crucial for maintaining a balanced and sustainable real estate market, which is integral to the long-term stability of the city's economy. By dissecting the intricate relationship between the IT sector, land use, and the land market, policymakers and researchers can gain insights into the challenges and opportunities that arise during urban evolution. This analysis serves as a foundation for developing strategic plans that balance economic growth, housing affordability, and overall livability. Ultimately, understanding the impact of Gurgaon's IT boom on land use and the land market is indispensable for crafting a roadmap that guides the city towards a future that is both technologically advanced and socially sustainable.