Delhi-NCR Leads Luxury Housing Demand, Outshining Mumbai, Pune, and Other Cities in Q1 2023

The real estate market in India has witnessed a remarkable upswing in the initial quarter of the financial year 2023, surpassing 100,000 units in housing sales across the country’s top 7 cities. Furthermore, there has been a significant 23 percent year-on-year increase in new property launches, rising from 89,140 units in Q1 2022 to approximately 110,000 units in the first quarter of 2023.

A recent report by Anarock has highlighted Delhi-NCR as the frontrunner among the top seven cities in terms of property deliveries in 2023, witnessing an astounding 97 percent growth from the previous year. The region is poised to take the lead with an estimated completion of around 170,000 units this year, constituting nearly 30 percent of the entire year’s delivery pipeline.

This tremendous growth can be attributed to the surge in demand for high-ticket luxury housing priced above Rs 1.5 crore, with approximately 24 percent of the total units sold falling into this category, according to the report.

The pandemic has notably fueled the demand for larger homes in Delhi and its neighboring cities, leading to a significant boost in the premium and luxury housing sectors, which have gained rapid momentum.

A recent report by CBRE South Asia revealed that luxury housing sales in Delhi-NCR have witnessed a massive growth of 216 percent, outpacing major cities like Mumbai, Hyderabad, Kolkata, and Pune. Families are now seeking to lead lavish lifestyles, and investing in luxury residences ensures access to top-notch facilities within the housing complexes.

Yukti Nagpal, Director of Gulshan Group, remarked, “Buyers have also shown a massive interest in luxury residences, owing to the premium facilities and amenities that these spaces offer.”

In terms of new launches, the Mumbai Metropolitan Region (MMR) and Pune accounted for 52 percent of the total launches among the top cities, while Hyderabad experienced a 32 percent decline in new supply compared to the previous year.

On the other hand, NCR observed a 34 percent increase in new launches in Q1 2023 compared to the same period in 2022, with approximately 12,450 units launched.

Overall, residential property prices in the top 7 cities experienced growth ranging from 6 to 9 percent in Q1 2023 compared to the same period the previous year.

Salil Kumar, Director-Marketing and Business Management at CRC Group stated, “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 moderations in the repo rate by RBI have also fueled 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.”

According to the latest ANAROCK Research, quarterly sales have reached an all-time high, with the top cities reporting a year-on-year increase of over 14 percent against the 99,550 units sold in Q1 2022.

Sanjay Sharma, Director of SKA Group, expressed his optimism, saying, “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.”

This year, the real estate market has embarked on a solid growth trajectory, with housing sales and new launches surpassing the one lakh mark, recording a 14 percent and 23 percent year-on-year increase, respectively.

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