Delhi-NCR surpasses Mumbai, Pune and other cities in luxury housing demand

The real estate market has experienced a remarkable upswing in the first quarter of financial 2023, with housing sales surpassing 100,000 units across the top 7 cities. Additionally, new launches have seen a significant rise of 23 per cent YoY, increasing from 89,140 units in Q1 2022 to approximately 110,000 units in the first quarter.

According to the latest report by Anarock, Delhi-NCR stands out as the frontrunner among India's top seven cities in terms of deliveries in 2023, reflecting a staggering 97 per cent growth from the previous year. The region is poised to take the lead with an estimated completion of around 170,000 units in 2023, accounting for nearly 30 per cent of the year's delivery pipeline.

The high-ticket segment priced above Rs 1.5 crore has played a significant role in this growth, with approximately 24 per cent of the total units sold falling into this category, as per the report.

Delhi and adjoining cities have witnessed a surge in demand for large houses, especially after the pandemic. This has significantly boosted the premium and luxury sectors, which have rapidly gained momentum. 

According to a recent CBRE South Asia report, the sale of luxury housing in Delhi-NCR has clocked a massive growth of 216 per cent, surpassing other major cities like Mumbai, Hyderabad, Kolkata and Pune. Families today want to lead a lavish lifestyle, and by investing in luxury residences, they also ensure that all the facilities are available inside their housing complex.

"Buyers have also depicted massive interest in luxury residences, owing to the premium facilities and amenities that these spaces offer," Yukti Nagpal, Director, Gulshan Group, said.

Regarding new launches, the Mumbai Metropolitan Region (MMR) and Pune accounted for 52 per cent of the total launches in the top cities. In comparison, Hyderabad experienced a 32 per cent decline in new supply on a yearly basis.

NCR observed a 34 per cent increase in new launches compared to Q1 2022, with approximately 12,450 units launched in Q1 2023. 

Residential property prices in the top 7 cities grew 6-9% in Q1 2023 compared to the same period in the previous year.

"The surge in housing demand in the Delhi-NCR post-pandemic reflects the resilience and enduring appeal of the real estate sector. The two consecutive moderation in repo rate by RBI has also fuelled the positive sentiment prevailing in the market, indicating sustained growth and a bright future for the housing market in NCR, fueling optimism among industry experts and stakeholders," Salil Kumar, Director-Marketing and Business Management, CRC group, said.

The latest ANAROCK Research also revealed that quarterly sales have reached an all-time high, with top cities reporting a YoY increase of over 14 per cent against the 99,550 units sold in Q1 2022.

"These numbers are highly encouraging, indicating that the real estate sector is experiencing strong tailwinds and is on a path of robust growth. With the government's focus on affordable housing and infrastructure development, the residential segment is in high spirits, offering opportunities for self-use and investment purposes," Sanjay Sharma, Director, SKA group, said.

Notably, the real estate market has embarked on a solid growth trajectory this year, with housing sales and new launches surpassing the one lakh mark and recording a 14 per cent and 23 per cent YoY increase, respectively.