The year 2023 witnessed a remarkable resurgence in the Indian real estate market, with a particular focus on the Delhi and National Capital Region (NCR). Ambience Group, a key player in the industry, reports an extraordinary surge in the demand for luxury housing, underlining a significant shift in consumer preferences post-pandemic. The Ambience Group owner opines: “According to a study conducted by property consultants CBRE, Delhi-NCR has become the preferred choice for affluent home buyers, experiencing the highest sales of apartments priced above Rs 4 crore in the initial half of the calendar year 2023.”

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The Ambience Group owner delves deeper into the performance of the real estate market in India in 2023 with the prevalence of premium residential projects, and says, “Shifts in consumer habits, driven by evolving demographics, increased technology adoption, and rising income levels, have profoundly transformed lifestyles. These factors stand as the primary catalysts for this novel way of living.” Another significant contributor to this trend is the promising return on investment offered by luxury homes, which not only ensure a high-quality living experience but also present lucrative opportunities for rental income.

Impact of the pandemic and the real estate market performance in 2023

Currently, the Indian real estate market has demonstrated striking resilience and adaptability, rebounding from the challenges posed by the global pandemic. The NCR region witnessed a decline in demand for real estate properties for approximately three quarters starting from 2020, attributed to the pandemic and the ensuing lockdowns. “The economic uncertainties, job insecurities, and diminished purchasing power made potential buyers and investors exercise caution, resulting in reduced property transactions and a decline in sales volume,” says the Ambience Group owner.

As the economy regained momentum and consumer confidence increased, the real estate sector experienced a notable uptick in both residential and commercial segments. The real estate sector in Delhi-NCR has significantly embraced digital platforms for property searches, virtual tours, and online transactions. Real estate agents and developers have adeptly shifted towards online marketing strategies to effectively engage with potential buyers and investors. “As a trend post-pandemic, there has been a change in the priorities of homebuyers as well, resulting in a heightened interest in properties featuring expansive layouts, dedicated home offices, and amenities conducive to remote work and lifestyle adaptations. There is a growing preference for properties situated in gated communities or those offering open spaces and green areas,” mentions the Ambience Group owner.

The narrative of 2023 unfolded as a story dominated by residential sales and the emergence of luxury real estate as a key driver of the market. The heightened focus on spacious living and premium amenities became defining characteristics of the post-pandemic real estate landscape. Ambience Group's success underscores the industry's ability to adapt to evolving consumer demands and preferences. Currently, the real estate market is in a phase of expansion, and India is experiencing favorable momentum.

“Gurgaon's real estate sector has emerged as the shining star of heightened demand among India's top urban centres in the second quarter of 2023,” says Ankush Kaul, Chief Business Officer at Ambience Group. The perfect blend of surging residential needs and a noticeable supply shortage has painted a captivating picture in the market, giving rise to increased average rates and a transformative landscape for the region's property sector. “With housing costs on the rise across major Indian cities post-COVID-19, the attraction of escalating capital values is drawing investors towards the country's real estate hotspots. Simultaneously, enhanced new provisions are playing a crucial role in tempering the upward trajectory of prices. Gurgaon's exceptional growth journey epitomizes the intricate dance between demand and supply in the ever-evolving realm of real estate,” adds Kaul.

During the initial nine months of 2023, there was a notable surge in launches, reaching a record high of 2,23,905 units and demonstrating a robust year-on-year growth of 21.5 per cent.  Anticipating a stronger year for 2024, the Ambience Group owner says, “Residential sales may range between 2,90,000 and 3,00,000 units in 2024, driven by strong demand and the introduction of high-quality launches.”

Premium residential projects in Delhi-NCR

A notable trend observed in 2023 was the heightened demand for premium residential projects in Delhi-NCR. As per CBRE's 'India Market Monitor Q1 2023' report, the luxury residential market sustained its growth momentum for the second consecutive year in 2023 both in sales and launch activities. The period between January 2023 and March 2023 witnessed a substantial year-on-year increase of nearly 151 per cent. Leading the surge, Delhi-NCR claimed the top position with a remarkable 216 per cent rise in luxury home sales during Q1CY23 compared to Q1CY22. Homebuyers, now more than ever, prioritise spacious and well-appointed homes, showcasing a paradigm shift towards comfort and sophistication.

“The contemporary era has witnessed an increased desire for luxury homes among the younger generation,” says Ambience Group Promoter. “This inclination is driven by elevated income levels, exposure to global living standards, and the ongoing process of urbanisation. Individuals from this generation exhibit a preference for opulent home designs incorporating the latest features, and unique experiences, as well as prioritizing safety and well-being,” adds the owner of Ambience Group. These modern consumers are making substantial investments to acquire homes that align with their aspirations, and it is anticipated that this trend will propel the market to unprecedented heights.

Quoting the CBRE’s report, the Ambience Group owner mentions, “The research highlights significant sales spikes in cities with Delhi-NCR experiencing a surge of over 216 per cent, Mumbai at 44 per cent, Hyderabad witnessing an astonishing 800 per cent increase, Kolkata at 100 per cent, and Pune soaring nearly 13 times on a year-on-year basis for the quarter ending Jan-Mar '23 for luxury home sales.”

How does 2024 shape up for the real estate sector?

“As we step into 2024, the trajectory of luxury real estate seems promising,” opines the owner of the Ambience Group. The lessons learned from the challenges of the past are steering the industry towards innovation and customer-centric offerings. The demand for spacious living and premium amenities is expected to continue driving the market. Developers and industry stakeholders are likely to invest in creating bespoke experiences, ensuring that luxury homes cater to the diverse needs and aspirations of the modern homebuyer. “The post-pandemic surge in luxury housing demand reflects a dynamic real estate market that is evolving to meet the changing needs of consumers. The success of premium residential projects and the substantial growth in this segment signals a paradigm shift towards a new era of sophisticated and spacious living in Delhi-NCR and beyond,” concludes the Ambience Group owner. 

 

 

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