Delhi-NCR Sees Surge in New Housing Supply as Demand Remains Strong
The Delhi-NCR housing market is witnessing a significant increase in fresh supply, with over 13,300 units launched in the July-September quarter, driven by strong consumer demand and infrastructure development.
Delhincr Housing MarketNew SupplyStrong DemandInfrastructure DevelopmentPropequityInframantraTrue North Financial ServicesVs RealtorsKrisumi Corporation4s DevelopersReal Estate NewsSep 21, 2024
The increase in fresh supply is one of the major factors contributing to the rise in sales in the Delhi-NCR market, along with strong consumer demand. In fact, housing sales in Delhi-NCR are likely to increase by 22% during July-September 2024 to 10,263 units from 8,411 units in the corresponding period of the previous year.
Developers are looking to capitalize on the strong demand in the market, particularly in the luxury segment. Mohit Jain, MD of Krisumi Corporation, noted that middle and upper-middle-class buyers are showing a strong preference for spacious homes, with demand for luxury homes priced in the range of ₹3-5 crore witnessing tremendous demand, particularly in Gurugram.
The upward trend in sales is expected to continue in the upcoming festive season as well as over the next few years. Sanju Bhadana, MD of 4S Developers, attributed the rise in sales and launches in NCR to infrastructure development in the past few years.
However, the trend is not uniform across all cities. According to PropEquity data, new launches in July-September 2024 may fall to 93,693 units from 1,05,655 units in the same period last year across nine major cities, including Delhi-NCR, Mumbai, Navi Mumbai, Thane, Pune, Bengaluru, Hyderabad, Chennai, and Kolkata. Sales are estimated to decline 18% to 1,04,393 units in the quarter under review from 1,26,848 units in the same period last year.
Despite the decline in sales in some cities, the overall market is expected to perform well, driven by strong demand and infrastructure development. Vijay Harsh Jha, founder and CEO of VS Realtors (I) Pvt Ltd, noted that the NCR market has been performing exceptionally well, defying the all-India trend.
Rochak Bakshi, Founder and CEO of True North Financial Services, attributed the demand to investors, who are driving the market due to price rises. However, he noted that the sharp appreciation in prices has made most properties beyond the reach of end-users, and the possibility of a significant appreciation from the current level looks very unlikely.
Overall, the Delhi-NCR housing market is expected to continue performing well, driven by strong demand and infrastructure development. While the trend may not be uniform across all cities, the market is expected to remain robust, with developers looking to capitalize on the strong demand.
PropEquity is a real estate data analytics firm that provides insights and trends in the Indian real estate market. InfraMantra is a property consulting firm that provides advice on real estate investments. True North Financial Services is a financial services firm that provides investment advice.
VS Realtors (I) Pvt Ltd is a real estate brokerage firm that provides services to homebuyers and developers. Krisumi Corporation and 4S Developers are real estate development companies that operate in the Delhi-NCR market.
Frequently Asked Questions
What is the expected increase in housing sales in Delhi-NCR during July-September 2024?
Housing sales in Delhi-NCR are likely to increase by 22% during July-September 2024 to 10,263 units from 8,411 units in the corresponding period of the previous year.
What is driving the demand for luxury homes in Gurugram?
Middle and upper-middle-class buyers are showing a strong preference for spacious homes, with demand for luxury homes priced in the range of ₹3-5 crore witnessing tremendous demand, particularly in Gurugram.
What is the expected trend in sales in the upcoming festive season?
The upward trend in sales is expected to continue in the upcoming festive season as well as over the next few years.
Why are investors driving the demand in the market?
Investors are driving the market due to price rises, but the sharp appreciation in prices has made most properties beyond the reach of end-users, and the possibility of a significant appreciation from the current level looks very unlikely.
What is the expected performance of the NCR market in the coming years?
The NCR market is expected to continue performing well, driven by strong demand and infrastructure development, defying the all-India trend.
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