Wednesday, July 24, 2024

Noida & Gurugram witnessed record housing price appreciation in 2023

The residential property prices in Noida and Gurgaon recorded the biggest hike in 2022, registering strong demand from homebuyers for both luxury and mid-segment housing. According to Cushman & Wakefield statistics from over 70 micro-markets in eight cities, the property prices in the high-end segment in Noida climbed by a staggering 22%, while in Gurgaon the growth was an impressive 21%.

Aakash Ohri, Group Executive Director and Chief Business Officer, DLF Ltd shared “In the past two years, the housing market in Gurugram has emerged as a hot real estate investment destination, with annual price growth reaching record highs. Today Golf Course Road in Gurgaon is asserted with some of the most expensive commercial and residential real estate, that have thrived in the past two decades, attracting millennials and HNIS, from across India and the world over. With a vibrant culture, world-class cuisine, and a lifestyle that allows them to ‘live, work, and play’ – all in a destination, the international community prefers to live in this part of Gurugram, also due to easy accessibility to their offices in commercial hubs like Horizon Centre, Cyber City, that are home to most corporates”  

The majority of the new housing launches belonged to the luxury segment, which was priced above INR 13,000 per square foot. This segment constituted 51% of the new launches. The mid-segment, which was priced close to the luxury segment, accounted for 49% of the new launches. In Gurgaon, golf Course Road, Golf Course Extension Road, Dwarka Expressway and New Gurgaon remains the top choices for home buyers. As per reports, DLF is all set to enter the Golf Course Extension Road with a luxury project at sector 63. The estimated sales realisation of this project will be around INR 7,500 crores.

“Gurugram is a hotbed for realty investments and investors are now more aggressively looking for investing here. In India, millennials are 34% (at 440 million) of the country’s total population, which is higher than total population of United States and comprises 46% of total workforce. Few people associate millennials (between the age group of 25 to 35 years) thinking they’re not business-savvy enough to impact the economy significantly. The reality is their purchasing habits and real estate preferences are making a big impact on the real estate market as they transition into the age of buying and renting properties” said Vivek Singhal, CEO, Smartworld Developers.

This hike in property prices is largely attributed to the improving economic conditions in the country, which has enabled homebuyers to invest in properties as an asset. In addition, the presence of well-developed infrastructure and improved connectivity in Noida and Gurgaon have added to the attractiveness of these cities as residential hubs. The increasing preference of homebuyers for ready-to-move-in apartments and villas have further fuelled the growth in Noida and Gurgaon.

“Gurgaon saw a remarkable rise in property prices in 2022, registering an impressive 21% growth according to Cushman & Wakefield’s statistics of over 70 micro-markets in eight cities. This significant hike in property prices highlights the strong demand for housing in the city, making it a sought-after destination for both luxury and super luxury segment homebuyers. Particularly in Gurgaon, Dwarka Expressway has emerged as one of the most promising micro markets for investors and end users alike. Once the entire expressway becomes operational, the housing prices will further increase in this area of Gurgaon” said Ravish KapoorManaging Director, Elan Group

In the fourth quarter of 2022, there was a substantial increase in the number of new housing launches in the Delhi NCR with 3,688 units being launched. This represents 2.6 times increase compared to the previous quarter and a 36% growth compared to the same period in the preceding year. The total number of housing launches in the NCR for the year 2022 was 9,289 units, indicating a 13% growth from the previous year.

Commenting on the same, Shashank Vashishtha, Executive Director, eXp India added, “The Indian real estate sector is booming like never before due to the influx of foreign investments. This has encouraged overseas investors to enter the Indian real estate market, providing a much-needed boost to the sector. In addition to government initiatives, the growth of the Indian economy, the increasing middle-class population, and the rising demand for housing have also played a significant role in attracting investments. This has enabled various real estate projects to progress rapidly, with housing price appreciation in 2022 reaching record levels.”

Furthermore, the Indian realty sector has also seen a surge of foreign investments in the past few years. The government’s efforts to make the sector more transparent and investor-friendly have encouraged overseas investors to enter the Indian real estate market.

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