Promising Prospects in Delhi NCR
The luxury residential market in Delhi NCR has certainly made one of the most promising comeback about two years ago with developers managing to sell 929 units priced over Rs 1.5 crore in the course of one year. It is interesting to highlight here that though the sales had declined by about 34% initially, in 2022, the market watchers speculate that the numbers will certainly pick up as demand is mainly being encouraged by NRIs and HNIs, who are trying to understand the projects with world class amenities and property management, in addition to many other factors that play a dominant role.
Developers and analysts are absolutely agreeing with each other on the observation that 2021 is bound to witness more traction in the luxury segment as NRIs and HNIs who have been forever speculative about making the final deals will eventually take a leap of faith and make the necessary transactions in the first half of 2022.
One cannot defy that the sales in luxury housing in Delhi NCR in 2020 was observed to be lower on an annual basis, its share of total sales has definitely been higher. Few of the reasons for the same cold be increasing spending capacity of the Delhites, robust infrastructure and impeccable luxuries available to the customers in pocket- friendly deals. If one has to believe Anarock research, NCR had seen total housing sales of more than 23,220 units, of which approximately 4% was luxury, priced at Rs 1.5 crore and in certain cases, above that.
Property Consultants chairman Anuj Puri asserts that the competent highs that luxury housing experienced in earlier years, especially as a good investment class, are over permanently. Today, end users are capable of driving majority of sales. An interesting realization on these parameters is the fact that post the demonetization, in late 2016, developers have also significantly curbed the supply within this category of luxurious property, and no doubt, this has significantly y impacted the segment and had compelled him to shed its previous unsold stock.
“In 2020, while affordable and mid segments continued to drive housing demand, luxury sales saw some movement in NCR despite the pandemic. This is also because the pandemic did not hit this buyer-class economically as much as it did the middle class,â€. It is because of the fact that the buyer class always has some assets reserved for the testing times like Corona so no crisis can immediately affect them financially. Square Yards principal partner and head (India sales)Rahul Purohit notes that the segment’s promising comeback in Q3 2020 has also happened due to low interest rates, comparatively stronger asset value and an appreciation of the need for space due to urbanite flexible working patterns.
Interestingly, the trend of working luxurious properties is driven by NRIs and HNIs looking for projects that offer convenience, better property management standards, touch-less luxury specifications and an ecosystem with world-class amenities. Properties in Gurgaon locations like Golf Course Road, Golf Course Extension and central Gurgaon asking for prices in the range of Rs 2-5 crore, and Sohna Road offering prices above Rs 1 crore witnessed prominent demand from aspiring home-buyers, he said, adding that luxury homes in Noida Expressway and central Noida with price estimates of above Rs 1 crore also managed to invite much of the demand, with developers resorting to price corrections and restructuring payment plans to speed up the buying decisions of consumers and get rid of the pending stock.
As a conclusion, it would not be wrong to deduce that people’s expectations from the available properties have increased manifold and now is the time for people to start demonstrating their interest in th3e same. the luxury segment is certainly bound to perform well. There is a lot of traction on properties upwards of Rs 1.2 crore, as people started to realize that this is the best time to buy houses. Covid-19 has surely created convergence between luxury real estate and quality living. With millennial being able to afford luxury homes for themselves as well, we can very assuredly expect -40% increase in sales in the segment during 2021 calendar year. A major demand has also come due to people spending a lot of time at their homes. The same people have now started searching for bigger and spacious homes with all luxury amenities as nobody wishes to compromise with the way they want to live. Luxury properties in Delhi are therefore quite ready to create the required buzz.
