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“Luxury housing segment is witnessing surging demand in Delhi-NCR”

Priya Singh | 2024-02-08

Maneesh Upadhyaya, chief business officer at 99acres.com believes that the real estate market in the belt is witnessing growth amidst shifting trends and rising demand
The pandemic inflicted a significant impact on the Indian real estate market, and the Delhi-NCR area, too, faced its share of challenges. However, with life returning to normalcy, there have been some notable shifts in the demand-supply dynamics in this belt.

Maneesh Upadhyaya, the chief business officer at 99acres.com, shares his insights about these emerging trends and how the Delhi-NCR real estate market will likely perform in the coming months.
Currently, the real estate market is on its growth journey and the Delhi-NCR region is witnessing positive traction. Developers are bringing new projects with added features of enhanced security and luxurious amenities.

They are launching properties at new price points but with lucrative deals that attract consumers. Besides affordable housing, the luxury housing segment is witnessing surging demand, whether it is a new project or resale. Even commercial projects, like shops and offices, are equally enticing to buyers and investors.
The pandemic and its associated lockdowns resulted in a slowdown in demand for real estate properties in the NCR region from 2020 for about three quarters. Potential buyers and investors became cautious due to economic uncertainties, job insecurities and reduced purchasing power. This led to decreased property transactions and a dip in sales volume.

The protocols and lockdown restrictions on construction activities also led to delays in the then-ongoing projects and project deliveries. Labour shortages, disrupted supply chains, and restrictions on movement hampered the progress of construction projects, impacting both developers and homebuyers.

In response to the reduced demand, developers in NCR adjusted prices and offered various incentives to attract buyers in the initial phase of Covid-19. Many offered discounts, flexible payment plans, free parking, and other promotional offers to stimulate sales and clear existing inventory. However, such offers have since ceased and there is an eventual reversing of pandemic-based price deductions in the case of new homes.

In the resale market, transactions had stopped due to restricted movement. But when the government lifted restrictions, demand resurfaced for all resale property types—apartments, builder floors and houses —and prices returned to pre-covid levels. At the time, in the case of residential properties, people usually preferred ready-to-move properties or projects with low completion cycles.
The pandemic brought about a shift in the preferences of homebuyers. There has been an increased demand for properties with spacious layouts, home offices, and amenities that support remote work and lifestyle changes. Buyers also seek properties in gated communities or those with open spaces and green areas.

Like in other regions, the real estate sector in Delhi-NCR increasingly relied on digital platforms for property searches, virtual property tours, and online transactions. Real estate agents and developers adapted to online marketing strategies to reach potential buyers and investors.

The economic impact of the pandemic led to an increased demand for affordable and mid-segment housing in NCR. The government’s initiatives, such as the Pradhan Mantri Awas Yojana (PMAY) and reduced interest rates on home loans, further supported the demand for affordable housing.

To mitigate the impact of the pandemic on the real estate sector, the government introduced several policy measures. These included liquidity support, loan moratoriums, and regulatory relaxations to ease the financial burden on developers and homebuyers.
The real estate market in the Delhi-NCR region has been one of India’s most dynamic and significant. The demand for real estate will remain at an all-time high in the region this year. The growth will be primarily driven by millennials who are keen to invest in real estate, both residential and commercial properties.

The residential market in Delhi-NCR has witnessed fluctuations in recent years. Factors such as changes in government policies, economic conditions, and regulatory reforms like the Real Estate (Regulation and Development) Act 2016 have influenced the market dynamics. Due to increased demand in these categories, developers have been focusing on affordable and mid-segment housing. Of all Delhi-NCR’s zones, the demand for luxury housing units has been highest in Gurgaon–pockets along Golf Course Road, Sohna Road and DLF phases 1, 2, 3 and 4.

The region also has a robust commercial real estate sector with a significant presence in office spaces, retail properties, and industrial parks. Gurgaon and Noida, mainly, have seen considerable commercial development and attracted several multinational corporations, IT companies, and startups in the last four to five years.
Infrastructure projects, like the expansion of metro lines, expressways, and airport development, have positively impacted real estate in the region. These developments have enhanced connectivity and accessibility, increasing demand for properties in areas benefiting from improved infrastructure.

The demand for affordable housing has been strong in Delhi-NCR, driven by the government’s initiatives, such as Pradhan Mantri Awas Yojana (PMAY) and incentives for first-time homebuyers. Developers have responded by launching projects in the affordable housing segment. Housing pockets in Ghaziabad, Noida and Greater Noida have seen several developers coming up with mid-income and budget housing options as well.