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39% of homes sold in Delhi NCR were priced upwards of Rs 1.5 cr in Q1 2024

Roughly 6,060 units were sold in the luxury category. This translates to a significant market share of approximately 39%

DLF, Real estate, DLF properties

DLF, Real estate (Photo: Wikimedia Commons)

Sunainaa Chadha NEW DELHI
Luxury apartments are a major driver of the residential property market in the NCR during the first quarter of  2024 due to increased demand for high-end properties as well as limited availability of land for new constructions, pushing prices higher.

Pan-India, over 27,000 units were sold in the luxury segment, accounting for roughly 20.8% of all residential property sales (130,170 units), showed data analysed by property consulting firm Anarock.

NCR leads luxury market:

The National Capital Region (NCR) witnessed the highest number of luxury property sales at approximately 6,060 units. This represents a substantial 39% share of the total residential sales in NCR during Q1 2024 (15,645 units).

Data from Knight Frank shows that Delhi-NCR witnessed the highest sales in the Rs 1 crore segment in the current calendar year so far. With sales of 10,558 units, the segment constituted 68% of the total sales volume in the NCR region between January and March 2024. 
 

This trend was witnessed in 2023 too. The highest rise in sales of luxury homes in 2023 was witnessed in Delhi and the National Capital Region (NCR). A total of 5,530 units were sold in the city in 2023, 197 per cent higher than 1,860 units in 2022, according to data analysed by CBRE.

Earlier this week, DLF Limited, India's largest real estate developer, announced the  sellout of its latest luxury project, DLF Privana West, located in Gurugram. The project with 795 apartments valued at approximately Rs 5590 crore, sold out entirely within just three days. Brokers Business Standard spoke to quoted a price range of Rs 6.43 to Rs 7.15 crore for a 4bhk measuring 3577 sq. ft and penthouse  and measuring 5472 sq ft, respectively.

DLF’s luxury real estate offering Privana South in Gurugram was sold-out in 72 hours with the pre-formal launch garnering sales of Rs 7,200 crore. The real estate major had sought a booking amount of Rs 50 lakh and the average price of one apartment was  Rs 7 crore.

Industry experts noted that for the fiscal year  2023-2024, DLF's sales from Non-Resident Indian (NRI) investors have surpassed  the Rs 3400 crores mark, underscoring the strategic importance of NRI markets in DLF's overarching growth agenda. The rich and ultra-rich are now buying luxury properties primarily for investment purposes. They anticipate capital appreciation (increase in property value) and some own multiple luxury properties. This is a shift from the previous trend where luxury homes were bought primarily for lifestyle upgrades.

Data from Sotheby's International Realty shows a significant increase (from 22% to 44%) in the number of buyers focused on capital appreciation.

The affluent class is expected to nearly double to 100 million people within three years, according to Goldman Sachs Group Inc. India’s ultrawealthy are growing. The robust start-up eco-systems and a growing number of unicorns have added to the swelling ranks of the super-rich. People are looking for larger living spaces with access to open green areas, a shift from cramped city apartments.  Farmhouses offer a suitable environment for those working remotely, with potentially more dedicated workspace and fewer distractions compared to city life.

Within Delhi,  Chattarpur and Mehrauli-Gurgaon Road showcase the high price range for farmhouses, ranging from Rs 10 crore to Rs 100 crore.

Another report by  by ANAROCK, a leading real estate consultancy, reveals the number of land deals in Delhi-NCR rose to 29 in FY24, encompassing approximately 314 acres, compared to 23 deals covering 273.9 acres in FY23.
Residential and township projects dominated land acquisitions, accounting for roughly 298 acres across 26 separate deals.The majority of deals (22) occurred in Gurgaon, followed by Noida (5) and Greater Noida (2). Other cities like Delhi and Faridabad saw limited activity with 1 deal each.

Gurgaon emerged as the prime location for major land deals, attracting developers like DLF Homes (29 acres) and Signature Global (25.75 acres) for large-scale residential projects. 

There was only one large land deal Delhi and the buyer was none other than  Zomato founder Deepinder Goyal.

Deepinder Goyal's Big Buy: The founder of Zomato, a major Indian food delivery company valued at Rs 1.6 lakh crore ($20 billion), made a significant land purchase in Delhi. Goyal spent Rs 79 crore to acquire a five-acre property in Dera Mandi, Delhi, between January and March of this year .Dominant Trend: This high-profile purchase is somewhat unique. Most other major land deals in and around Delhi (25 out of 29) involved real estate developers.

Other Regional Trends:

MMR (Mumbai Metropolitan Region): While MMR saw the highest overall sales (42,930 units), luxury properties accounted for a smaller share (9,360 units) compared to NCR.

Southern Cities: Southern cities like Hyderabad, Bangalore, Chennai, and Pune displayed a more balanced mix across segments.

"As luxury homes gain more traction in both new supply and sales, affordable housing continues its retreat to the sidelines. The luxury segment is driven by a mounting appetite for bigger homes by branded developers in superior locations," said Anuj Puri, Chairman - ANAROCK Group. 

LUXURYHOMESALEDS

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First Published: May 10 2024 | 2:30 PM IST

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