Demand for luxury apartments in Delhi surges 114% in Q1
A majority of the sales were from Gurgaon.
According to a JLL report, demand for high-end apartments in Delhi saw an increase of 114% q-o-q, with each of the new launches in the quarter receiving healthy responses.
Gurgaon accounted for 54% of the high-end apartment sales, followed by Noida and Delhi with shares of 24% and 22%, respectively.
Here’s more from JLL:
Demand for high-end residential apartments has, in recent times, been driven by factors such as aspirational lifestyle, the need for bigger homes and increasing disposable income. Properties by established developers were preferred as they have strong brand equity, good track records and better expertise in delivering such quality projects.
New launches record an increase of 24% q-o-q
In 1Q22, new launches in the high-end segment were up by 24%. Gurgaon led with a 56% share of new launches with most new projects recorded on the Dwarka Expressway corridor, with developers like M3M, Godrej, Shapoorji Pallonji and Sobha launching new projects or new phases in their existing ones.
Noida accounted for 44% of the high-end launches with Godrej and ATS introducing new towers in already existing projects at Sector 43 and Sector 150, respectively.
Prices increase in Gurgaon and Noida as input costs rise
Prices in most of the corridors of Gurgaon and Noida have gone up marginally, while it remained stable in Delhi. Rising input costs, increased demand and lower inventories have been the major reasons for the increase in prices in recent quarters.
With raw materials and transport costs rising, prices are set to increase for high-end residential apartments.
Outlook: Sales and launches expected to get a boost
With cost escalations driven by rising input costs, demand may see temporary softening in the short term. However, demand for high-end homes is expected to rise in the medium term, with most of the established developers launching projects in this segment and demand remaining healthy in this category.
Infrastructure developments will drive both sales as well as new launches, encouraging more developer participation. High-end homes are expected to perform well in the suburbs with the connectivity getting better through improved infrastructure.
Note: Delhi Residential refers to Gurgaon's prime residential market.