Gurugram PG Operators Seek Rules to Regulate 10,000 Facilities and 50,000 Rooms
Gurugram, Haryana | September 21, 2026: Gurugram's paying guest sector is seeking a dedicated regulatory framework as the city now has more than 10,000 PG facilities offering over 50,000 rooms to corporate employees and other long-term residents.
The PG Association of Gurugram has asked Haryana's town and country planning authorities to create a separate policy for PG accommodation, arguing that the state's existing guesthouse rules do not adequately cover long-term paying guests living in residential properties.
Why Gurugram PG Operators Want a Separate Policy
The association says PG accommodation and guesthouses operate differently.
Guesthouses generally provide short-term stays, while PG residents often stay for months under rental-type arrangements. According to the association, these longer stays do not necessarily change the residential character of a property.
The existing Haryana guesthouse policy, issued in July 2019 and amended in October 2020, is therefore being described by the association as unsuitable for the city's expanding PG sector.
More Than 10,000 PGs Operate Across Gurugram
According to the association, Gurugram has more than:
- 10,000 PG facilities
- 50,000 rooms
- A large resident base consisting of employees of corporate companies
Many PG facilities operate from residential houses.
The association has argued that these properties primarily provide accommodation rather than functioning as conventional commercial establishments.
The lack of a dedicated framework, however, has created uncertainty over registration, land use, safety requirements and enforcement.
Proposed Registration Rules for PG Properties
The association has proposed registration and regularisation of PG facilities operating on:
- Plots measuring at least 275 square yards
- Roads with a minimum width of 12 metres
It has also called for clearly defined safety standards, particularly fire-safety requirements.
The proposed framework would be designed specifically for Gurugram rather than simply applying the existing guesthouse rules.
Residential or Commercial Use Is a Key Property Issue
The classification of PG accommodation has direct implications for property owners.
The association has argued that long-term PG accommodation should not automatically be treated as commercial activity when residents are using the premises as a place to live.
It has referred to a December 4, 2025 Supreme Court judgment concerning hostel and PG accommodation, arguing that residential use by students and working executives can fall within the concept of a residential dwelling.
The legal position for individual properties, however, can depend on the applicable land-use rules, permissions and facts of each case.
Safety Rules Could Become a Major Part of Any New Policy
The association has specifically sought defined fire-safety norms for PG facilities.
The issue is particularly relevant because many PG properties operate from converted or occupied residential houses where multiple people may live under one roof.
A formal registration system could potentially give authorities a clearer record of PG properties and allow safety standards to be monitored more systematically.
The association has also highlighted the need for safer accommodation for women working in Gurugram.
Why the Issue Matters to Property Owners
A dedicated PG policy could affect owners who currently rent rooms or entire residential properties to paying guests.
If a regulatory framework is introduced, owners could face requirements related to:
- Registration
- Property size
- Road width
- Fire safety
- Occupancy
- Building compliance
- Land-use classification
- Regularisation of existing PG facilities
Property owners considering conversion of residential houses into PG accommodation should therefore watch any policy issued by Haryana authorities before making significant structural or commercial changes.
Gurugram Has Limited Government-Run Accommodation
The association also pointed to the limited supply of government-managed accommodation in the city.
It said Gurugram currently has only one working women's hostel in Civil Lines, while thousands of employees require longer-term accommodation close to corporate workplaces.
The association argues that a regulated private PG sector could help fill part of this housing gap while providing companies with safer and more affordable accommodation options for employees.
What Happens Next
The PG Association of Gurugram has submitted its representation to the Director General of the Department of Town and Country Planning seeking a dedicated policy.
No new regulatory framework has been announced yet.
The key issues for property owners and PG operators will be whether Haryana introduces registration, what minimum property and road-width standards it adopts, and how fire-safety and residential land-use rules are applied to existing facilities.
If a dedicated policy is introduced, it could bring greater clarity to one of Gurugram's largest informal long-term rental accommodation segments while also changing compliance requirements for thousands of residential properties.