The residential property market in Delhi NCR is experiencing a significant surge in luxury home sales, with a staggering 39% of homes sold in the first quarter of 2024 priced upwards of Rs 1.5 crore. This trend underscores the growing demand for high-end properties and the limited availability of land for new constructions, which is driving prices higher across the National Capital Region (NCR).
An analysis by property consulting firm Anarock reveals that over 27,000 units were sold in the luxury segment pan-India, constituting approximately 20.8% of all residential property sales. The NCR witnessed the highest number of luxury property sales, with approximately 6,060 units sold, capturing a significant 39% share of the total residential sales in the region during Q1 2024.
Delhi-NCR has been a hotspot for luxury property sales, as evidenced by data from Knight Frank, which shows that the region witnessed the highest sales in the Rs 1 crore segment in the current calendar year. Sales of luxury homes have been on the rise since 2023, with Delhi and the NCR witnessing a 197% increase in sales compared to 2022.
Recent sellouts of luxury projects like DLF Privana West and Privana South in Gurugram further highlight the demand for upscale living spaces in the region. DLF Limited’s latest luxury project, DLF Privana West, comprising 795 apartments, sold out entirely within three days, with prices ranging from Rs 6.43 to Rs 7.15 crore for a 4BHK and penthouse, respectively.
Industry experts note a significant shift in the buyer demographics, with the affluent and ultra-rich primarily purchasing luxury properties for investment purposes. Sales from Non-Resident Indian (NRI) investors for DLF have surpassed the Rs 3400 crore mark for the fiscal year 2023-2024, reflecting the strategic importance of NRI markets in the company’s growth agenda.
According to Sotheby’s International Realty, there has been a notable increase in the number of buyers focused on capital appreciation, indicating a shift in purchasing behavior towards long-term investment strategies.
The growing affluent class in India, expected to nearly double to 100 million people within three years, is driving the demand for larger living spaces with access to open green areas. This has led to increased interest in farmhouses, particularly in areas like Chattarpur and Mehrauli-Gurgaon Road, where prices range from Rs 10 crore to Rs 100 crore.
In addition to residential projects, land acquisitions are also on the rise in Delhi-NCR, with 29 deals covering approximately 314 acres in FY24. Gurgaon emerged as the prime location for major land deals, attracting developers like DLF Homes and Signature Global for large-scale residential projects. Notably, Zomato founder Deepinder Goyal made a significant land purchase in Delhi, highlighting the diversification of investors in the real estate market.
Deepinder Goyal’s recent land acquisition of a five-acre property in Dera Mandi, Delhi, for Rs 79 crore between January and March 2024, underscores the diverse investor profile in the region’s real estate sector. While most major land deals involved real estate developers, Goyal’s purchase reflects the growing interest of high-profile individuals in the property market.
In conclusion, the luxury property market in Delhi NCR continues to thrive, driven by increasing demand from affluent buyers, strategic investments from NRIs, and a growing trend towards long-term capital appreciation. As the region evolves, diverse investment opportunities and evolving buyer preferences are reshaping the landscape of luxury real estate.
