Amid pandemic, investments in residential real estate is now looked at as a trend with more people buying houses.
Amid pandemic, investments in residential real estate is now looked at as a trend with more people buying houses. It’s not just affordable housing that people are looking at, but sales of luxury and ultra-luxury houses (having prices above Rs 1.5 crore) have increased. On the back of this growing trend, real estate developers in Delhi and NCR region have supplied more houses in the luxury segment. Of the 10,570 housing units launched in Delhi-NCR during the first six months of this year, 17 per cent of houses belonged to the luxury segment, said Anarock Property Consultants. Last year, luxury houses were not more than 9 per cent of the overall houses constructed.
From 2018 till June 2021, as many as 11,300 new luxury units have been launched in the entire Delhi-NCR. The year 2020 saw the lowest share of luxury housing supply.
Santhosh Kumar, Vice Chairman at Anarock Property Consultants said, “Noida accounted for the maximum new luxury share (73 per cent) in the first half of this year, followed by Gurugram with a 22 per cent share, and Greater Noida with a 5 per cent share.” However, other regions of NCR like Ghaziabad, Faridabad and Bhiwadi did not see any new luxury housing launches in this period. According to the report, Godrej Properties Limited, DLF Group, ATS Green, Sobha Limited, and Birla Estates among others were the top providers of luxury housing this year.
Gaurav Pandey, CEO- North, Godrej Properties Limited, said that the demand in the luxury segment is strong now. “For us, the bookings have exceeded the initial estimates for luxury houses developed in Noida. Given the rise in demand and people’s interest in luxury houses, Godrej Properties is coming up with another luxury housing project in Noida itself,” Pandey told Financial Express Online.
Meanwhile, the overall demand in residential real estate has increased significantly. JM Financial Institutional Securities in its report last week highlighted that 85% of houses under construction for this year have been booked and residential markets are now witnessing a rise in clearance of inventory across ready to move in properties as well.