APPD Market Report Article
DelhiNovember 29, 2022
Dr Samantak Das, Head of Research, India & Sri Lanka
Demand for high-end homes remains robust
- Demand for high-end residences continued to grow, increasing by 18% q-o-q and up by 4.6 times y-o-y, backed by numerous launches during the quarter. Attractive pricing, offerings in key growth corridors by established players, flexible payment plans and lifestyle upgrades are the major drivers pushing sales of high-end apartments.
- Gurgaon contributed 61% to total sales in the high-end segment, with Golf Course Extension Road becoming a hotspot for new launches, while the already-developed micro markets of MG Road and Golf Course Road witnessed strong sales. Noida was second with a 22% share of the total sales while Delhi contributed to the remainder with recent launches showing very healthy sales.
New launches up 75% q-o-q
- Gurgaon led the new launches, contributing 62% to new supply with DLF and Orchid Group launching low-rise independent floors in the Golf Course Road corridor. Signature Global, known for affordable housing, has ventured into the high-end segment, and also announced independent floors on Golf Course Extension Road. Puri Constructions also introduced a project in the same micro market.
- Gaurs Group has added a project in Greater Noida, one of the limited forays into the high-end segment in this corridor, which is dominated by affordable and mid-level residences. Noida accounted for 31% of new launches, and Delhi contributed to the rest with the launch of Godrej’s Prima in South Delhi.
Capital values and rents show steady growth
- Rental prices in most of the submarkets have increased, due to cost-push inflation, increased demand and lower inventory.
- Demand for high-end housing options is returning as offices open up and expatriates come back to the city, which contribute to the increase in rents.
Outlook: Demand momentum to continue, supported by ample supply
- Launches are expected to increase going forward, with established developers expanding teams in anticipation of new announcements and players entering the market in the high-end segment. A lot of land transactions have been noted in recent times, and these developers are anticipated to monetise their investments by launching new projects in the coming months.
- With the festive season approaching, developers are expected to roll out offers and schemes to attract potential buyers, and homebuying activity is expected to stay strong in the next quarter. Planned new launches are expected to attract homebuyers as well as investors, and perform well in terms of sales.