Market Overview

DLF and the Making of Gurgaon: A Short History

Published 2024-07-03 · NStay Homes

How DLF helped build modern Gurgaon

No company is more closely tied to the growth of modern Gurgaon (Gurugram) than DLF. Large parts of the city's best-known addresses, including the DLF phases, Cyber City and the towers on Golf Course Road, were developed by the company. Gurgaon's growth also involved state planning, other developers, highway building and the arrival of large employers, so DLF's role is best understood as one major driver among several. This article sets out the history factually and draws out what it means for buyers today.

From Delhi colonies to Gurgaon

DLF was founded in 1946 by Chaudhary Raghvendra Singh and began by developing residential colonies in Delhi. Its early projects included well-known neighbourhoods such as Model Town, Rajouri Garden and South Extension. After the Delhi Development Act of 1957 put land development in Delhi under the Delhi Development Authority, leaving little room for private colonisers, the company turned to land beyond Delhi's borders in Haryana.

Under Kushal Pal (K.P.) Singh, who later led the company as chairman, DLF began assembling land around Gurgaon village and started its DLF City project from the mid-1970s onwards. At the time, the area was largely agricultural, with limited infrastructure but close to Delhi and the airport.

Private licensed colonies: how the model worked

Haryana's law on the development and regulation of urban areas allowed private companies to obtain colony licences, develop the land and sell plots and homes, subject to approved layouts and development charges. DLF's phases (DLF Phase 1 to 5) were among the largest early colonies developed this way. They offered:

  • planned layouts with plotted houses, group housing and local shopping;
  • internal roads, parks and in-colony services built by the developer;
  • a supply of modern housing for people working in Delhi and, later, in Gurgaon itself.

The same model shaped most of private Gurgaon. It also explains a long-running local issue: civic services inside private colonies depend on the developer until the colony is formally taken over by the municipal corporation. Our guides on DTCP colony licences and MCG colony takeover explain what this means for owners.

Cyber City and the office boom

DLF's biggest effect on Gurgaon's economy came through commercial real estate. As India's IT-services and outsourcing industry grew from the 1990s, the company built large office campuses. DLF Cyber City, near NH-48 and the Delhi border, became one of the NCR's main office districts, with a mix of multinational and Indian occupiers. Retail, hotels and the Cyber Hub dining precinct followed, and the area became a daytime city of its own.

The office jobs created demand for housing across Gurgaon and pulled in other developers. For a current, investment-focused view of the district, see our DLF Cyber City guide.

Transport links

Two transport projects are often linked to DLF, and it is worth getting them right:

  • Delhi–Gurgaon Expressway (NH-48 stretch): a national-highway project that opened in 2008. It sharply improved access to Delhi and benefited DLF's colonies and offices, but it was a public highway project, not a DLF development.
  • Rapid Metro: a privately financed light-metro line that opened in 2013. It was originally promoted by a joint venture that included DLF and IL&FS, and connects Cyber City and Golf Course Road to the Delhi Metro at Sikanderpur. DLF later exited the venture, and after IL&FS ran into difficulties in 2019, operations were taken over by the Delhi Metro Rail Corporation.

Golf Course Road and luxury housing

DLF also helped create Gurgaon's luxury housing segment. High-rise condominiums such as The Aralias, The Magnolias and The Camellias on Golf Course Road set price and specification benchmarks for the city. The company remains active in premium housing across several corridors. Its current pipeline is covered in our DLF developer profile.

The other side of the story

A balanced history also has to note the limits of private-led urbanisation in Gurgaon, which applied across developers and not to DLF alone:

  • City-wide trunk infrastructure such as sewerage, storm-water drainage and water supply often lagged behind private construction.
  • The handover of private colonies to the municipality has been slow in many cases, which leaves residents unsure who maintains roads and services.
  • Rapid growth put pressure on groundwater, traffic and green cover.

In 2017, Haryana set up the Gurugram Metropolitan Development Authority (GMDA) partly to coordinate city-wide infrastructure across these gaps.

What this history means for buyers

  1. Location within a colony matters. Older DLF phases near Cyber City and MG Road command premiums for access, but building age and parking vary a lot.
  2. Check who maintains the colony. Find out whether services are run by the developer's agency, an RWA or the municipal corporation, and what charges apply.
  3. Verify title and approvals even in established colonies. Plot transfers, additional floors and changes of use all have rules.

Frequently asked questions

When was DLF founded and when did it come to Gurgaon?

DLF was founded in 1946 in Delhi. After the 1957 Delhi Development Act restricted private colonisation in Delhi, it turned to Haryana, and it began its DLF City project in Gurgaon from the mid-1970s.

Did DLF build the Delhi–Gurgaon Expressway?

No. The expressway was a national-highway project that opened in 2008. It greatly improved access to DLF's colonies and offices, but DLF did not develop it.

Who runs the Rapid Metro now?

The Rapid Metro was originally promoted by a joint venture that included DLF and IL&FS. DLF later exited, and after IL&FS's difficulties in 2019, the Delhi Metro Rail Corporation took over operations.

Are DLF phases maintained by DLF or the municipality?

It depends on the colony and its handover status. Check with the MCG and the local RWA who currently maintains roads, water and sewerage in the specific phase.

How NStay Homes can help

NStay Homes advises on buying and selling in Gurgaon's established colonies, including the DLF phases, and checks title, approvals and maintenance arrangements for each property. Speak to NStay Homes advisor Naresh Shekhawat on 911 911 9605.

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