High-end residential launches in New Delhi more than doubled in Q1

Gurgaon accounted for 65% of the new launches’ sales.

High-end residential sales registered an uptick by 44% compared to the previous quarter. According to JLL, the recently launched projects attracted buyer interest and generated good sales numbers. Of the sales, 65% was generated in Gurgaon, followed by Delhi which had a share of 17%. Noida also drew buyer attention as it had a 14% share in sales.

The project launches garnered good traction as buyers preferred projects by established developers with good execution capabilities. The demand mainly came from end-users who were attracted by the good deals on offer and lower home loan interest rates.

Here’s more from JLL:

Prominent new launches witnessed

New launches in Delhi NCR more than doubled in the quarter as consumer sentiment improved. One project was launched each in Delhi, Gurgaon and Noida. Delhi saw the launch of DLF Midtown, Smart World Floors launched in Gurgaon and Noida’s new launch was Ace Parkway X Residences.

In the quarter, the developers’ focus was on premium, mid and high-end projects as projects with the right fundamentals and in good locations have been gaining traction, irrespective of price points.

Prices remain stable

Prices remained range bound across all the submarkets as developers focused on offloading unsold inventory and attracting buyers with attractive payment terms.

Development will likely focus more on premium-plotted developments and activity in plots is expected to continue as they have lower investment costs compared to high-rise apartments.

Outlook: Residential market is expected to rebound in 2021

The high-end residential market is expected to retain the momentum in sales and launches in 2021 as economic conditions improve and there are favourable conditions such as low home loan interest rates, attractive payment terms and developer discounts given in some cases to clear inventory.

However, the revival of the residential segment is dependent on the containment of the COVID-19 resurgence. Prominent developers with proven execution capabilities and good financial liquidity are expected to be at an advantage and capture a greater share of the market.

Note: Delhi Residential refers to Gurgaon's prime residential market.