Delhi-NCR Real Estate Market: Affordable Housing Declines to 24% in H1 2024, Luxury Sales Soar to 45%
Delhi-NCR Real Estate Market: A Shift Towards Luxury Homes
The Delhi-NCR real estate market has experienced a significant shift in the first half of 2024, with luxury homes now accounting for 45% of total sales. This marks a stark contrast to 2019, when luxury sales represented only 3%, while affordable homes held a dominant 49% market share.
Among the key contributors to this change, Gurugram stands out, with over 10,365 luxury homes sold, contributing nearly 60% of the region’s total luxury sales. Noida and Greater Noida together saw 3,550 luxury homes sold, further solidifying the region’s preference for high-end properties.
The total sales in NCR stood at approximately 32,200 units in H1 2024. The affordable segment, which previously dominated, accounted for just 24% of these sales, a sharp decline from the 49% share it held five years ago. In contrast, the luxury segment saw a surge in both demand and supply, signaling a transformation in buyer preferences. This shift is particularly evident in Gurugram, where luxury homes now account for 59% of the market.
Key Factors Behind the Shift
Several factors are contributing to this shift towards luxury housing in NCR:
Investment Potential: The increasing demand for luxury properties is driven by their strong investment returns. Luxury homes are not only seen as status symbols but also as lucrative investments.
Affluent Buyers: The region’s growth in High Net-Worth Individuals (HNWIs) and Ultra High Net-Worth Individuals (UHNWIs) has made luxury homes more accessible and desirable.
Lifestyle Appeal: A rising number of affluent millennials, particularly in Gurugram, are opting for luxurious living spaces that offer convenience, comfort, and lifestyle perks. The proximity to major commercial hubs and world-class amenities has made such areas highly attractive.
Integrated Townships: The demand for integrated townships offering high-end homes with enhanced safety and security is also a major driver. These developments cater to the needs of modern homeowners who seek a balance between luxury and a secure environment.
Changing Sales and Supply Dynamics
While affordable housing sales have seen a decline, the supply of affordable units has also shrunk. Only about 2,570 affordable homes were launched in H1 2024, compared to the 16,675 affordable units launched in 2019. On the other hand, the luxury segment has seen a sharp increase in supply, with over 18,600 luxury homes launched in H1 2024, up from 4,230 in 2019.
Gurugram’s Leading Role
Gurugram continues to dominate the luxury housing market in NCR, with around 17,570 units sold in H1 2024. Approximately 10,365 of these were luxury homes, reflecting the city’s rise as the epicenter of high-end real estate. This marks a dramatic rise in luxury sales from just 470 units sold in 2019. The city’s prime location and rapid infrastructure development make it an attractive choice for luxury homebuyers, particularly those looking for modern integrated townships.
Future Outlook
The luxury housing market in NCR is expected to continue its upward trajectory as the region sees more affluent buyers entering the market. The increasing demand for luxury properties reflects a broader trend of heightened interest in high-end real estate across the country. As more developers turn their attention to this lucrative segment, it’s likely that NCR will continue to lead the way in luxury housing sales in the coming years.
In conclusion, while affordable housing still plays an essential role in the Delhi-NCR real estate market, the significant rise in luxury housing sales in 2024 indicates a major shift in buyer preferences. The demand for premium, secure, and well-located properties is set to redefine the region’s real estate landscape in the future.