Located in the heart of India with excellent connectivity to all parts of the country, Delhi-NCR has emerged as a sought-after realty hotspot. Being a nerve centre of political and economic activities, it has witnessed significant strides in infrastructural developments in the past few years, thereby accelerating real estate growth. The region is home to multinational corporations, startups and businesses that have catalysed the migration of people from states across India. The commercial development has further prompted migrants to settle down here and provided a fillip to residential real estate.
The increase in UHNIs, HNIs and NRIs, the easing of FDI norms, the global exposure and the inclination for opulent lifestyle have fuelled the growth of luxury housing in the past few years. The ‘walk-to-work concept has led to the burgeoning residential development in the vicinity. The pandemic has reaffirmed the significance of homeownership against the uncertainties in rented accommodation. Discerning homebuyers are willing to go the extra mile to get quality products and a superior experience. They are spending the majority of their time indoors, which has recalibrated homebuyers’ preferences towards spacious homes set amid verdant greenery. These properties also serve as investment assets with assured and stable returns. A report by PropEquity, a real estate data analytics firm, highlights that luxury housing sales in India’s seven key markets increased by 21% in February 2021 to 8,219 units Y-O-Y.
Developers have come up with an array of offerings catering to every segment of homebuyers. The demand for gated condominiums with 24×7 security and surveillance, state-of-the-art amenities such as a clubhouse, gym, spa, tennis court, badminton court have emerged as sought-after offerings. These gated condominiums are self-sufficient townships exemplifying convenience and hassle-free living without the need to venture out of the premises.
Delhi-NCR continues to be the top location due to its superior connectivity and employment prospects. With excellent connectivity to the Indira Gandhi International Airport and the New Delhi Railway Station and accessibility to Manesar and Delhi, Gurugram has emerged as a real estate hub. The region is home to expatriates, NRIs and HNIs who are seeking luxe living with sophisticated benchmarks.
The resurgence in business activities after the second wave has provided an impetus to the real estate sector. The PropEquity report also highlights that Delhi-NCR led the trend with a 54% increase in sales, followed by Mumbai Metropolitan Region (MMR) with a 37% increase, Bengaluru (13%), Pune (12%) and Chennai (8%). The surge in sales indicates the renewed confidence of homebuyers and subsequent revival of demand. This demand is expected to rise further against the backdrop of home loan interest rates, attractive freebies and payment plans. The economic fundamentals are already strong and developers are coming up with exciting offers to stimulate purchase ahead of the festive season.
Way forward
The festive season will set the pace for the further uptick in sales and the demand is expected to over around pre-COVID levels by the end of this year. Various studies have predicted a healthy outlook for the remaining year, which augurs well for real estate growth.
Moreover, proposed large-scale projects such as the Delhi-Mumbai Industrial Corridor (DMIC), six industrial sub-cities along the Dwarka Expressway and Gurgaon-Faridabad metro rail link will bolster connectivity and have a cascading effect on real estate and economy. The sector has already received a policy push with the New Industrial Policy. Once implemented from November, it will attract investment, generate employment and spur real estate growth. In the future, technology, customer-centricity and sustainability will drive the trajectory of real estate growth. By Mr Rahul Singla, Director, Mapsko Group