How has Delhi-NCR’s real estate market evolved over the past few years?

Delhi-NCR has evolved as a precious asset for the real estate market because of several reasons.

The housing supply in Delhi has been fairly low as compared to its counterparts – Gurugram & Noida.

Delhi-NCR, being one of the largest real estate markets in India, offers a varied mix. Over the last few years, the real estate market in Delhi NCR has shown remarkable transformation. Being the capital of the nation, Delhi has always been one of the favourites for migrants & job seekers. Despite slower growth in recent times, it continues to be attractive for investors as well as end-users due to various factors, including the booming IT Industry, increasing Metro connectivity, the rise of affordable micro market, to name a few.

With the increasing demand for residential property, certain shifts have been observed as per the demand-supply dynamics. The housing supply in Delhi has been fairly low as compared to its counterparts – Gurugram & Noida. The reason seems to be a mismatch in the demand & supply. Despite the massive demand in the city for affordable housing, property prices in most of the areas of the city have skyrocketed. As a result, certain areas that offer affordable housing or mid-segment projects have been performing relatively better property segments and different micro-markets across the region.

Gurugram burst on to the real estate scene during the early 2000s, with its prime focus on targeting mostly DINK couples or people working in MNCs. The price tag of the properties even at that time was comparable with today’s property prices in Delhi NCR. It enjoyed & marketed exponentially for its proximity to the international airport. However, over the years, the city has turned out to be a complete real estate market with offerings for all segments of people. Now, Gurugram has affordable housing hubs, areas where properties for the middle class are available as well as the high-end class. The increasing demand has also been pushed because of various other factors like infrastructural push, job opportunities, policy amendments and many more.

Consequently, a few areas have emerged as Delhi’s most vibrant affordable housing hotspots. Dwarka- L Zone, Uttam Nagar, Rohini, Gurugram, Sohna, Sector 65, Sector 68 have been seen as emerging hot favourites for real estate. Apart from the residential real estate growth, commercial growth has also been significant in the region. The infrastructural capacity & availability of the workforce has lured the interest of the corporates & employers, which continues to revive even after the effects of the pandemic, though, at a slower rate.

According to a report by Knight Frank India, there has been an inclination among the buyers to purchase plots, near-completion properties & ready-to-move properties in the region. The lowered down property prices along with dipped home loan rates have enhanced the affordability index to a great extent. An increase in the project launches in the areas of Noida & Greater Noida has been evident of the increased demand.

An interesting & fruitful aspect of the real estate market of the region has been a reduction in the unsold inventory, which has reduced by 9% from 2019.

The micro-markets have been seen as one of the best performers for boosting the real estate market. New Gurugram, including the Dwarka Expressway & Golf Course Road, has attracted most of the buyers. The mid-segment buyers, looking for affordable housing, have been inclined to areas nearing Greater Noida West constructed DME has fueled the demand for housing projects across this highway belt. Projects launched in these areas got a good response, which is visible in the way they are widening of NH 24 and newly sold within the days of being launched.

Apart from the affordable & micro market segments, one more segment in real estate, which is to be observed especially for the Delhi NCR region, is the rise of luxury real estate. With the rising number of ultra-net-worth individuals, the range of luxury and ultra-luxury residential options can very well cater to the demand of designed and customized abodes, as preferred by HNIs, UHNIs, and NRIs is evolving at a higher rate. Sustainable living options are on the rise, homes designed and constructed on the lines of wellness and health amenities are gaining more attention.

The rise in the number of first-time asset creators along with various other favourable conditions is likely to take the region’s real estate growth further in the coming times. Delhi NCR has evolved as a precious asset for the real estate market & shall continue being that as well.

(By Aman Trehan, Executive Director, Trehan IRIS)

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