India's NCR has a fresh appetite for luxury homes: report

India's National Capital Region (NCR), including New Delhi, Gurugram, Noida, and Greater Noida, is seeing a surge in luxury housing demand.

This shift is driven by rising incomes and a growing desire for upscale facilities.

According to Indian real estate consultant ANAROCK, out of approximately 32,200 housing units sold in the NCR in the first half of 2024, over 45% were luxury units, while 24% were affordable units.

In the first half of 2024, around 14,630 luxury units were sold in NCR, compared to 1,580 units sold in the entire year of 2019.

The ANAROCK report classifies luxury homes as those sold for Rs 1.5 crore (about $180,000) or more, and affordable homes as those sold for Rs 40 lakh or less.

The real estate consultant said in a note:

North-Indian corporate hub Gurugram leads the way in luxury demand in NCR

Out of the overall increase witnessed in the segment in Delhi-NCR, Gurugram has seen the most activity.

Anuj Puri, chairman of the ANAROCK group said:  

Puri highlighted how in 2019, only 13,245 units were sold in the city, out of which only 4% or approximately 470 residential units fell under the luxury segment. 

Luxury residential units in Gurugram include properties like the Trump Towers, and properties by leading Indian developer DLF like The Crest, The Camellias, and many others. 

Noida and Greater Noida followed Gurugram in sales of luxury units. The two cities together saw approximately 8,425 units sold in H1 2024. Of this, 42% (approx. 3,550) units were luxury homes and just 13% (approx. 1,100) units were in the affordable segment.

The highest sales share - 3,770 units or 45% - was in the mid and premium segments priced between INR 40 lakh and INR 1.5 Cr.

In 2019, these two cities together saw the highest sales in NCR – approx. 21,770 units. Of this, 44% (approx. 9,565) units were sold in the affordable segment, and just 4% (approx. 990) units were in the luxury segment.

The maximum sales of 11,215 units or 52% were in the mid and premium segments together.

Ghaziabad, Faridabad, Delhi and Bhiwadi together saw approx. 6,205 units sold in H1 2024, of which the luxury segment accounted for more than 715 units, while affordable housing saw 1,920 units sold.

The maximum sales of approximately 3,570 units were in the mid and premium segments. In 2019, only 115 luxury homes were sold in these cities. 

ANAROCK report said:

It added that NRIs are also expressing rising interest in the market even as access to attractive financing, and the impact of Covid-19 has changed the way Indians view their homes. 

India's luxury housing market sees 27% increase in sales in H1

The rise in demand for luxury properties in Delhi-NCR is in sync with an overall rise in demand in the segment across the country. 

India's luxury housing market priced over Rs 4 crore saw a notable 27% year-on-year increase in sales in H1 2024, with a total of 8,500 luxury housing units being sold during this period, mentioned a CBRE report.

The upward trend in luxury residential demand has mirrored the rise in retail space take-up from the luxury category, which experienced an exponential growth of 162% Y-o-Y in 2023, according to CBRE.

Established luxury brands have sought to capitalise on the growth by expanding their presence in major metropolitan cities and strategically entering new markets.

Number of UHNWIs in India to grow fastest across the globe

The number of UHNWIs in India, defined as individuals with a net worth of US$ 30 million and above, are expected to increase by 50% over the next five years, a report by Knight Frank published in February, said. 

The report added that 32% of the wealth of India’s ultra-rich was invested in residential real estate, even though 14% of it was located outside the country.

However, Delhi is still far behind Mumbai in the ranking of luxury residential markets. 

Of the 100 luxury residential markets tracked in Knight Frank's Prime International Residential Index, Mumbai jumped 29 spots in 2023 to bag the 8th position while Delhi and Bengaluru ranked 37th and 59th, respectively.