APPD Market Report Article

Delhi

May 26, 2024

Dr Samantak Das, Head of Research, India

14.2%

INR 29.0

N/A

Highest ever quarterly sales in the High-end segment

  • In 1Q24, a total of 5,109 High-end housing units were sold in Delhi NCR, which is the highest ever in a quarter. Around 79% of the total units sold were in Gurgaon. The completion of the Dwarka Expressway in Gurgaon has boosted the demand for High-end housing across major corridors of Gurgaon.
  • All the new launches in Gurgaon witnessed massive responses, and most of them were completely sold out within days of their launch. DLF’s new project in Sector 77 was sold out within two days of its pre-launch, and Signature Global’s new project in Sector 37D was oversubscribed by 5.4 times, again, during the pre-launch phase. The rest of the High-end sales were contributed by Noida and Delhi.

Over 4,000 new High-end units launch in 1Q24

  • In 1Q24, a total of 4,048 housing units were launched in Delhi NCR, the second highest ever after 1Q23. Launches were up by 69% compared to the previous quarter. A majority (75%) of the new launches were in Gurgaon, with established developers like DLF, Signature Global, Conscient Infrastructure, Puri Constructions and TARC launching new projects.
  • The NCT of Delhi, which did not witness any major launches in the past few quarters, saw two new High-end projects launch in the quarter, one by TARC at Kirti Nagar and the other by Sawasdee Group on Lawrence Road. No new High-end launches were recorded in Noida or Faridabad. Even with launches going up, the unsold inventory continued to decline and was down by 22% q-o-q.

Rising demand pushing up both capital values and rents

  • Overall, capital values were up by 4% q-o-q while showing 16% annual growth. Along with the highest sales and launches, Gurgaon saw the highest price increase too, with prices going up by 5% q-o-q. On a quarterly basis, prices in Noida and Delhi were up by 4% and 3%, respectively. With the demand for rental options also going up, the overall rents were up by 3% q-o-q.
  • Three residential segment investment transactions were recorded in the quarter. They included ASK Fund investing INR 120 crore in Trevoc Group’s maiden project on Golf Course Road in Gurgaon; PAG Asia investing INR 400 crore in M3M Group’s bonds, helping M3M refinance their existing debt and acquire land; and SWAMIH Fund investing INR 340 crore for the completion of Vatika Group’s stalled project.

Outlook: High-end housing sales to remain strong

  • Demand for High-end housing from end users, investors and NRIs is expected to remain resilient. Factors like the need for bigger homes with better amenities, increasing disposable incomes, infrastructure developments becoming operational and developers launching more premium projects should further boost the demand for High-end housing across Delhi NCR.
  • Prominent developers like DLF, Godrej Properties and Prestige Group have acquired land parcels in Gurgaon, Noida and Ghaziabad, respectively, for proposed residential developments. Supply is therefore expected to remain strong across most submarkets. With High-end housing demand and supply going up, capital values are expected to be north-bound, too.

Note: Delhi Residential refers to Gurgaon's prime residential market.

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