APPD Market Report Article
DelhiDecember 1, 2021
Demand for high-end residential units up 410% q-o-q
- Demand for high-end residential units saw an increase of 410% compared to the previous quarter with the relaxations in lockdown restrictions along with significant pent-up demand as vaccination rates rose. Demand for bigger homes has gone up as a result of COVID-19 as people prefer flexible and larger configurations for work-from-home setups, dedicated space for kids’ online classes, etc.
- Noida and Gurgaon both contributed around 47% to the overall high-end residential sales. Projects by credible developers with strong brand equity, good track records and quality were preferred.
New launches in the high-end segment more than double in 3Q21
- In 3Q21, new launches in the high-end segment more than doubled with an increase of 117% q-o-q. The Noida submarket led the new launches, contributing 52% to the new supply with the launch of Godrej Evergreen Woods, which received great response from buyers shortly following the launch.
- Gurgaon contributed 48% of the overall launches with DLF low-rise independent floors in both sector 92 and in DLF City Phase II, leading the supply.
Capital values increase marginally
- Prices saw a slight increase backed by sales recovery with buyers coming back post-lockdown and pushing demand in the positive direction. Low interest rates, attractive prices combined with attractive payment plans are making the residential market more lucrative with good deals available for buyers.
- Developers are expected to continue to launch high-end homes with attractive payment plans and freebies, attracting buyers in the upcoming festive season. A good number of high-end launches are expected as developers witnessed great response from potential buyers in the quarter.
Outlook: High-end residential sales expected to rise
- Developers are expected to continue to launch high-end homes with unique themes and modern features attracting buyers in this segment. With the festive season approaching, decade-low interest rates and flexible payment plans, upcoming quarters are expected to witness a good response from prospective buyers for new project launches.
- Demand for high-end homes has gone up and will continue to rise along with increasing disposable income, sentiment shifts due to momentum in the job market, aspirational lifestyle upgrades and the need for bigger homes. Corporate heads, business families and NRIs will remain the key buyers in this segment with a lot of new, young homebuyers also getting into this segment.