Delhi NCR drives 65% of luxury home sales this year, Gurugram leads

Among the top seven cities in India, Delhi NCR has stood out with a remarkable 64 per cent share of luxury residential launches in the first half of 2024, according to data analysed by real estate consultancy firm JLL.

Several developers, including DLF Limited, TARC, Sobha Ltd, Paras Buildtech, M3M India, BPTP, Krisumi Corporation, Central Park, and Experion Developers, have launched luxury projects.

Gurugram takes the lead

Gurugram has emerged as the top performer in the luxury segment, with 88% of all launches concentrated in the Dwarka Expressway and Southern Peripheral Road regions. This impressive growth reflects the increasing demand for premium residences in these areas.

 

 Gurugram leads in luxury launches in H1 2024 in Delhi NCR

Source: REIS, JLL Research Note: Delhi NCR includes Delhi, Gurugram, Noida, Ghaziabad, Sohna and Faridabad Noida includes Noida city, Greater Noida and Yamuna Expressway. Luxury residential segment is in the price bracket of INR 5 crore and above

Overall Market Activity:

The Delhi NCR residential market witnessed a strong rebound in H1 2024, with a total of 23,500 units launched. This surpassed the total launches of 2023, which stood at 22,707 units, indicating a growing preference for luxury homes.

Shift in Buyer Preferences:

Developers are responding to the changing preferences of buyers, who are increasingly seeking larger, more luxurious homes with superior amenities. This trend has led to a surge in luxury launches, even from developers who previously focused on affordable and mid-segment housing.

Gurugram dominated with 55% of the new launches, while Noida contributed 35%. Notably, over 26% of these new launches totalling about 6,200 units comprised luxury apartments (priced at Rs 5 crore or above). In 2023, only 12% of the launches were in the luxury segment. 

Delhi NCR drives 65% of sales of luxury spaces pan India in H1 2024

Similar to the trend seen in launches, Delhi NCR led the luxury sales among India’s top seven cities, accounting for 65% of the market share totaling 4,763 units sold. Factors like increasing disposable income, an aspirational lifestyle and infrastructure advancements like recent launch of Dwarka Expressway are driving up the demand for luxury housing in the region.

Over a quarter of the launches in the first half of 2024 in Delhi NCR were priced at  Rs 5 crore and above

In H1 2024, approximately 19% of the total homes sold in Delhi NCR were in the luxury segment. A majority (81%) of the luxury homes sold in the region were in Gurugram. The top performing micro markets in Gurugram includes New Gurgaon, Dwarka Expressway and Southern Peripheral Road.

"In the future, it is anticipated that luxury housing sales in Delhi NCR will surpass 8,000 units by the end of CY 2024, representing a twofold increase from the previous year. Furthermore, established developers are actively procuring land in prime locations and growth corridors to meet the increasing demand and launch their projects in the future," said JLL.

The residential boom in Gurugram is evident by significant investments and new projects. Recently, Whiteland Corporation and Marriott International inked a pact to introduce Westin Residences to Gurugram. Located along Dwarka Expressway in Sector 103, this project is set to be the largest branded residence under the Westin brand in India, promising exclusivity, wellness, and world-class hospitality. The total investment for the project is estimated to be around Rs 5,600 crore, which includes a construction cost of Rs 5,000 crore and a land cost of Rs 600 crore. 

DLF is set to launch Camellias-II in Gurgaon, right across the existing Camellias, with apartments potentially starting at Rs 60 crore for 10,000 square feet.

Godrej Properties Ltd. (GPL) has emerged as the highest bidder for two luxury group housing plots in Gurugram, securing a combined bid value of Rs 515 crore, on September 2 The land parcels, measuring approximately 3.6 acres and 2 acres, are located in prime areas, with the larger plot in the Golf Course Road micro-market and the smaller one in Sector 39, near NH 48, as per an exchange filing.

These plots were acquired through an e-auction conducted by the Haryana Shehri Vikas Pradhikaran. The combined development potential of these plots is over 1 million square feet, with an estimated revenue potential exceeding Rs 3,400 crore. The planned developments will feature luxury residential apartments in various configurations.