According to a report by Knight Frank India, residential sales in Delhi-NCR reached a 10-year high in the first half of 2023, with 30,114 units sold. Gurugram accounted for more than half of the sales, while Noida, Greater Noida, Ghaziabad, Delhi, and Faridabad also had shares in the market.
The increase in sales can be attributed to two main factors: the pause in the repo rate hike cycle, which provided relief to homebuyers, and the introduction of new inventory that received positive response from buyers. Due to a lack of ready-to-move-in properties by reputable developers, any new inventory introduced by them was eagerly accepted by the market, particularly after the impact of the pandemic.
Strong Sales Performance in Delhi-NCR Signals Renewed Confidence in Timely Delivery and Surging Demand for Luxury Homes
This has reinstated buyers’ confidence in timely project delivery. Consequently, the first half of 2023 recorded the strongest sales period since the first half of 2013. However, the number of new launches decreased from the second half of 2022, with developers focusing on acquiring land for future projects while meeting the latent demand for homes. The peripheral areas of NCR are witnessing new launches, including group housing with amenities, independent floors, and gated plotted developments, catering to the preferences of the modern homebuyer. Among the NCR regions, Gurugram accounted for a significant 82% of the total new launches in the first half of the year.
Homes priced above Rs 1 crore account for 65% of the sales in the Delhi-NCR region. This category has consistently seen an increase in its share of the total sales volume since the second half of 2021. It grew from 37% in the first half of 2021 to 41% in the first half of 2022. In the second half of 2022, homes priced above Rs 1 crore made up half of the region’s total sales volume before rising to 65% in the first half of 2023. This surge in demand for high-priced flats reflects the significant growth potential and profitability within the real estate sector in the thriving NCR market. Developers are encouraged to explore innovative designs, embrace sustainable practices, and push the boundaries of development.
High-Net-Worth Individuals Drive Sales of Luxury Homes in Delhi-NCR, Gurugram Emerges as a Prime Residential Hub
The report attributes the sales at such high prices to the desire of high-net-worth individuals and affluent families to own spacious and independent homes. On the other hand, the percentage share of homes priced between Rs 50 lakh and Rs 1 crore has declined from 33% in the first half of 2022 to 22% in the first half of 2023. For homes priced below Rs 50 lakh, the share has decreased from 25% to 13% during the same period. The affordability segment has been particularly affected by repo rate revisions, as buyers in this category typically seek more affordable options for home ownership, and any changes in lending costs and EMIs have a greater impact on their decision-making.
Gurugram remains a significant hub for primary residential sales in the NCR region. Since the second half of 2019, Gurugram’s share of the total sales volume in NCR has consistently expanded. It grew from a 12% share in the second half of 2019 to 52% in the first half of 2023. The report highlights the introduction of new launches in various formats, including independent floors, gated plotted developments, and high-rise apartment projects by reputable developers, which have contributed to healthy sales velocity in Gurugram. Large township projects along Golf Course Extension Road, New Gurugram, and the Dwarka Expressway are witnessing significant sales momentum, especially with the imminent completion of the expressway. The high-rise living trend in Gurugram has resonated well with both first-generation and second-generation homebuyers seeking a lifestyle upgrade. Continuous improvements in connectivity between Gurugram’s main areas and its developing peripherals support the ongoing real estate boom in the region.
