APPD Market Report Article
DelhiFebruary 28, 2022
Demand jumps by 54% q-o-q
- Demand for high-end properties rose by 54% compared to the previous quarter, with the festive season offers and relaxed movement restrictions due to the rising vaccination rate helping sales to gain momentum. Gurgaon contributed 59% to the overall high end sales, followed by Noida with a share of 32%.
- Residential projects by established developers with strong brand equity and good delivery track records were preferred. With hiring at an all-time post-COVID-19 high, NRIs looking to purchase a high-end property in their home country were supported by the festive period’s attractive offers, low interest rates, and flexible payment plans, which increased demand for high-end homes.
Launches up by 95% q-o-q
- Gurgaon was the major contributor to launches, accounting for 90% of the new supply with a majority of the launches in the form of low-rise, independent floors. The new launches included two new projects by DLF Signature Floors at DLF City Phase 4 and Alameda Floors at SPR, SS Group Linden Floors at Sector 84 and Smart World Orchard at Sector 61.
- Noida accounted for the rest of the launches in the high-end segment with Godrej introducing new towers in Palm Retreat at Sector 150.
Prices remain stable
- Prices in the prime areas of Gurgaon and Noida inched up marginally, but were largely stable in Delhi, Faridabad and Ghaziabad.
- Low interest rates and mostly unchanged prices combined with attractive payment plans to make the high-end residential market achieve greater traction from potential buyers.
Outlook: Demand may see a dip as COVID-19 resurfaces
- Demand for high-end homes may see a dip in the short-term as COVID-19 concerns may lead to restrictions which may delay purchase plans. However, buyer demand is expected to remain intact and rise going forward as there remains a clear preference towards amenities-loaded, bigger homes.
- Big developers are expected to continue gaining market share either by getting into joint development with small developers or by acquiring land for new projects. They are likely to remain the top preference for buyers who are chasing quality and brand identity.