Surge in Luxury Real Estate Sales Dominates Delhi-NCR Market, with Gurugram Leading the Charge

The luxury real estate market in the National Capital Region (NCR) has witnessed a dramatic transformation, emerging as the dominant segment in the first half of 2024. According to recent data from ANAROCK, luxury homes now account for a significant 45% of total real estate sales in the region, a massive leap from just 3% in 2019. This shift underscores a growing preference for high-end properties among buyers in NCR, driven by rising disposable incomes, changing lifestyles, and the appeal of premium amenities.

Gurugram: The Luxury Capital of NCR

Gurugram, often referred to as the "Millennium City," has solidified its position as the epicenter of luxury housing within NCR. The city accounted for nearly 60% of luxury real estate sales in the region during the first half of 2024. Out of approximately 32,200 units sold in NCR during this period, Gurugram alone contributed around 17,570 units across various price segments. Notably, 59% of these units were classified as luxury homes, marking a significant rise in demand for upscale properties.

The shift towards luxury in Gurugram contrasts sharply with the trends observed just a few years ago. In 2019, Gurugram saw the sale of approximately 13,245 units, with only 4% (about 470 units) falling within the luxury category. The remaining sales were dominated by the affordable housing segment, which accounted for 43% of the market. This rapid increase in luxury sales highlights a broader trend of urbanization, where affluent buyers are seeking homes that offer exclusivity, security, and modern conveniences.

Changing Dynamics in Noida and Greater Noida

While Gurugram leads in luxury sales, the neighboring cities of Noida and Greater Noida are also experiencing a shift in their real estate dynamics. During the first half of 2024, these two cities collectively recorded the sale of approximately 8,425 units. Of these, 42% (around 3,550 units) were luxury homes, a marked increase from the 4% share seen in 2019. The mid and premium segments, priced between ₹40 lakh and ₹1.5 crore, also performed well, contributing to 45% of total sales.

This change is significant given that Noida and Greater Noida were previously dominated by the affordable housing segment. In 2019, these cities saw the sale of around 21,770 units, with nearly 44% (around 9,565 units) being affordable homes. The current preference for luxury and mid-premium properties indicates a shift in buyer preferences, possibly influenced by the increasing availability of high-quality developments and improved infrastructure.

Other Cities: Ghaziabad, Faridabad, Delhi, and Bhiwadi

The luxury real estate trend is not confined to Gurugram, Noida, and Greater Noida. Other cities in NCR, including Ghaziabad, Faridabad, Delhi, and Bhiwadi, have also seen a rise in luxury property sales. In the first half of 2024, these cities together recorded the sale of approximately 6,205 units. While the majority of these sales (around 3,570 units) were in the mid and premium segments, the luxury segment accounted for more than 715 units.

In contrast, back in 2019, these cities witnessed approximately 11,900 units sold, with the highest share (about 7,875 units) in the affordable segment. Only 115 luxury units were sold during that period, highlighting the dramatic increase in demand for high-end properties in 2024.

Implications for Other Metro Cities

The trend observed in NCR could have implications for other metro cities like Bangalore, Mumbai, and Hyderabad. As luxury real estate gains traction in NCR, similar patterns may emerge in these cities, driven by the increasing demand for premium properties and the availability of luxury developments. Bangalore, for instance, with its growing population of high-net-worth individuals and rapid urbanization, could see a rise in luxury real estate sales in the near future.

In summary, the luxury real estate market in NCR has undergone a significant transformation, with Gurugram leading the charge. The growing preference for luxury homes is not only reshaping the real estate landscape in NCR but could also influence trends in other metro cities across India.