The real estate market in Delhi-NCR has shown mixed results in the first quarter of 2023, with Gurugram experiencing a 10% rise in housing sales, while demand fell in Noida and Greater Noida by 23%, according to data from real estate consultant Anarock. The rise in sales in Gurugram is attributed to strong demand for luxury homes, while sales dropped in Noida-Greater Noida due to fewer new project launches and lower demand amid an increase in mortgage rates and property prices.
Anarock Research Head Prashant Thakur explains that the drop in sales in the rest of Delhi-NCR markets like Delhi and Ghaziabad seems to be due to the impacted earnings of the affordable segment homebuyers, which are yet to reach the pre-COVID levels. However, the demand for high-end and luxury units in Gurugram remains strong in the first quarter of this year, according to Anarock's data. The demand is driven by the strategic location, a spate of infrastructural developments, and a burgeoning millennial population in Gurugram.
Realty firm Krisumi Corporation MD Mohit Jain believes that Gurugram's residential market will continue to attract interests from both end-users and investors alike, bolstered by strategic location, a spate of infrastructural developments, and a burgeoning millennial population. Despite the increase in housing prices, Gurugram has attracted significant foreign investment, with companies like Blackstone, Brookfield, and GIC investing in the region's real estate market. The increasing demand for housing is expected to continue in the coming years, with several major developers planning new projects.
Anarock's data also shows that housing sales rose 14% to 1,13,770 units in January-March from 99,550 units in the year-ago period across seven major cities, with Delhi-NCR being the only region that witnessed a fall in the first three months of this year. The demand for green buildings in the luxury segment is expected to grow at a CAGR of 30-35% over the next few years, with developers incorporating sustainable and eco-friendly features in their luxury projects, such as solar panels, rainwater harvesting systems, and energy-efficient appliances.
InvestoXpert MD Vishal Raheja believes that the sales were muted in Noida due to a lack of new launches. However, he hopes that the Noida-Greater Noida market will revive in this quarter with many launches in the pipeline. Garvit Tiwari, co-founder at NCR-based property brokerage firm Inframantra, says that the demand is high in Gurugram, especially for premium homes, mainly due to improvement in infrastructure and the presence of large corporates, especially IT/ITeS firms. There is limited supply from reputed builders, and units launched by them are quickly getting sold.
In conclusion, the real estate market in Delhi-NCR is showing mixed results in the first quarter of 2023, with Gurugram experiencing a rise in housing sales, while demand fell in Noida and Greater Noida. However, the demand for high-end and luxury units in Gurugram remains strong, driven by strategic location, infrastructural developments, and a burgeoning millennial population. The demand for green buildings in the luxury segment is also expected to grow in the coming years, with developers incorporating sustainable and eco-friendly features in their projects.