Don't buy home in metros: Hedge fund manager warns this could be your worst mistake
Buyers should think long-term before committing. "If you wish to own a home, buy something that will survive for the next 30 years. With Gurgaon properties, you can't really even say that."
- Sep 2, 2025,
- Updated Sep 2, 2025 3:30 PM IST
Hedge fund manager and Wisdom Hatch founder Akshat Shrivastava on Tuesday warned against purchasing homes in India's metro cities, calling it "one of your worst mistakes."
"Buying a property in an Indian Metro is going to be one of your worst mistakes," Shrivastava wrote on X. He listed three reasons: "1) Entire market is builder controlled (so you buy very expensive), 2) Overdevelopment is causing infrastructure issues (so the cities are becoming unlivable), 3) With constant new developments, selling your property becomes a challenge. Simply rent, live peacefully."
Shrivastava added that buyers should think long-term before committing. "If you wish to own a home, buy something that will survive for the next 30 years. With Gurgaon properties, you can't really even say that."
His comments come amid mounting concerns about the sustainability of Gurugram's property market. In June this year, real estate expert Vishal Bhargava called it "a house of cards," warning that the city's rapid rise in prices was fueled by speculation. "If you’re looking to buy a home in Gurugram, be very careful. Gurugram real estate market is now a house of cards. All it needs is a small push for many projects to crumble," Bhargava said.
He noted that home prices in Gurugram have tripled since 2021, even though rents remain comparable to Bangalore. Bhargava blamed a surge of speculative "traders" for the bubble. "The key player in Gurugram is trader. They buy at launch and sell quickly thereafter. Unlike Mumbai and Bangalore where the majority of buyers are end users and investors, Gurugram is dominated by traders," he explained.
According to Bhargava, builders prefer traders because they can book multiple apartments with small upfront payments under "first transfer free" schemes. "If an investor has 5 crores, he will probably buy one apartment of 5 crores. But a trader who has 5 crores will book five apartments of 5 crores by making an upfront payment of 1 cr per apartment. He doesn't have the money. He’s just doing an FNO trade."
He warned that many traders are now stuck, unable to resell units or make future payments, risking defaults and stalled projects. "The trader who created the bubble also bursts the bubble in the process killing wealth and sentiment for many stakeholders. Gurugram real estate is a gripping movie with a bad ending. The exact timing of the movie ending is uncertain, but the ending is certain. It will be bloody and there will be no one else to blame but themselves."
Earlier this year, Shrivastava also explained why housing prices across India remain high. "House prices are NOT going down in India any time soon. The reason is very simple: most of the houses in India are NOW being developed by private developers. Unlike the old times, when people used to buy their land, build their houses - now, people want everything ready. And, the thing is that private developers will never sell you cheap," he said.
Shrivastava added that developers can stall projects or sell them to private equity firms, rather than cut prices. "Our GDP per capita is $2200, almost 40 times less than the US: but our housing prices has started to outcompete many top US cities. Will the bubble grow? only time will tell."
Hedge fund manager and Wisdom Hatch founder Akshat Shrivastava on Tuesday warned against purchasing homes in India's metro cities, calling it "one of your worst mistakes."
"Buying a property in an Indian Metro is going to be one of your worst mistakes," Shrivastava wrote on X. He listed three reasons: "1) Entire market is builder controlled (so you buy very expensive), 2) Overdevelopment is causing infrastructure issues (so the cities are becoming unlivable), 3) With constant new developments, selling your property becomes a challenge. Simply rent, live peacefully."
Shrivastava added that buyers should think long-term before committing. "If you wish to own a home, buy something that will survive for the next 30 years. With Gurgaon properties, you can't really even say that."
His comments come amid mounting concerns about the sustainability of Gurugram's property market. In June this year, real estate expert Vishal Bhargava called it "a house of cards," warning that the city's rapid rise in prices was fueled by speculation. "If you’re looking to buy a home in Gurugram, be very careful. Gurugram real estate market is now a house of cards. All it needs is a small push for many projects to crumble," Bhargava said.
He noted that home prices in Gurugram have tripled since 2021, even though rents remain comparable to Bangalore. Bhargava blamed a surge of speculative "traders" for the bubble. "The key player in Gurugram is trader. They buy at launch and sell quickly thereafter. Unlike Mumbai and Bangalore where the majority of buyers are end users and investors, Gurugram is dominated by traders," he explained.
According to Bhargava, builders prefer traders because they can book multiple apartments with small upfront payments under "first transfer free" schemes. "If an investor has 5 crores, he will probably buy one apartment of 5 crores. But a trader who has 5 crores will book five apartments of 5 crores by making an upfront payment of 1 cr per apartment. He doesn't have the money. He’s just doing an FNO trade."
He warned that many traders are now stuck, unable to resell units or make future payments, risking defaults and stalled projects. "The trader who created the bubble also bursts the bubble in the process killing wealth and sentiment for many stakeholders. Gurugram real estate is a gripping movie with a bad ending. The exact timing of the movie ending is uncertain, but the ending is certain. It will be bloody and there will be no one else to blame but themselves."
Earlier this year, Shrivastava also explained why housing prices across India remain high. "House prices are NOT going down in India any time soon. The reason is very simple: most of the houses in India are NOW being developed by private developers. Unlike the old times, when people used to buy their land, build their houses - now, people want everything ready. And, the thing is that private developers will never sell you cheap," he said.
Shrivastava added that developers can stall projects or sell them to private equity firms, rather than cut prices. "Our GDP per capita is $2200, almost 40 times less than the US: but our housing prices has started to outcompete many top US cities. Will the bubble grow? only time will tell."