Surging Demand for Luxury Residential Real Estate in Delhi-NCR: Market Insights and Projections
Thursday, 14 March 2024
· The demand and value for luxury residential real estate is showing an upward trend in Delhi-NCR.
· Average rentals witnessed an increase of 28% YOY in Gurugram, at a city level. Dwarka Expressway and Golf Course Road witnessed the highest increase with 35% and 30% YOY growth respectively.
· Noida micro markets, with 7% YOY increase, witnessed the highest rental growth in 2023, which is expected to go further up this year.
· Delhi has been witnessing a significant increase in the capital value of super luxury residential properties across regions.
The micro markets of Gurgaon, Noida and Delhi are showing consistent signs of growth both, in terms of growth and value. Real estate continues to be the best investment option here, with people choosing to prefer these cities over others to live. Talking separately about all three micro markets and their growth areas, the trends clearly show luxury residential market shining bright.The real estate market in Gurugram is literally on fire, proving those markets watchers wrong who claimed that it was the post-pandemic pent-up demand that was driving the market upwards. In fact, each micro market here is performing well, influenced by numerous factors, including favourable government policies, economic conditions, and market demand. With sentiments continuing to be positive, and the demand continuing to go up, leading players from across the country are already set with extensive expansion plans here. Overall, the growth trajectory of the luxury residential segment here has been incredible. Average rentals witnessed an increase of 28% YOY at a city level. Dwarka Expressway and Golf Course Road witnessed the highest increase with 35% and 30% YOY growth respectively.Noida today has an identity of its own. With an undisputed reputation of being a people's market, it not only offers varied residential and investment options, but also reinforces people's confidence in decadal low unsold inventory as well as the new launches. The market watchers believe that the path ahead looks much stronger than expected. New launches of luxury units more than doubled here in 2023. More than 65% of the new developments are coming up along the Noida-Greater Noida Expressway, highlighting an increased prominence of this micro market in the luxury residential segment. Noida micro markets, with 7% YOY increase, witnessed the highest rental growth in 2023. Newer availability of luxury residential apartments in Sector 150, has further resulted in softening of average rental values in the micro market.Delhi has been the heart of India, quite literally. All the action that has ever happened in the country begins from here. Looking at its hotspots, while initially, Central Delhi was considered the most prime area, over the years, the city saw the shift happening towards South Delhi. Talk of now, and the Central West Delhi is now also being considered as the new destination for premium/luxury living. The city is increasingly becoming a popular choice for luxury homebuyers, indicating a shift in Delhi's real estate landscape. Average rental values witnessed growth of 27% at a city level in 2023, in comparison to 11% annual increase reported in 2022. Central 1 micro market witnessed the highest growth with 36% YOY increase in average rentals. This was followed by the South East and South Central and Central West micro markets that observed 26% annual hike in average rental values.*Vishesh Prakash, Head, R&R*, says, "Delhi-NCR has always been the frontrunner, both in terms of value and volumes of real estate across the segment. A close analysis shows that even the micro markets here are doing well, rather exceeding market expectations. Be it pockets of Gurugram or Noida, or Delhi, each market is growing YoY basis. And, now with new launches, especially luxury, getting sold out in days, and new launches being eagerly awaited along Dwarka Expressway, SPR, Noida Expressway, a new chapter is ready to be written. This is further backed up by big-bang infrastructural announcements and continued focus on infrastructural upgrades that are backing up the trend. With so much happening in each of these markets, Delhi-NCR is definitely on its way to create history."These trends affirm buyer preference for areas offering luxury amenities, and a product mix that suit their aspirations. A number of factors are driving the success of Gurgaon, Noida and Delhi micro markets and their prominent zones, which includes their favourable demographics, robust infrastructure, and availability of high-end luxury projects here.
*Key Highlights*
· Real estate in Delhi-NCR micro-markets to be the hotspots as far as the demand is concerned.
· In Gurgaon, Golf Course Road and Dwarka Expressway are witnessing the highest peak in rentals, making them the hotspots.
· In Noida, the highest growth in the capital values for luxury properties is witnessed along Noida-Gr Noida E-way.
· In Delhi, the sales of super luxury realty have taken a new high, establishing new price benchmarks not just across South and Central Delhi, but even Central West Delhi.
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