The luxury housing sector in Delhi-NCR is poised for significant growth, with Golf Course Road, Dwarka Expressway, and Greater Noida identified as prominent micro-markets, says Dr. Gautam Kanodia, Founder of KREEVA, Kanodia Group, and Kanodia Cement.
In an exclusive interview with Sanjeev Sinha, Dr. Kanodia shares insights into current real estate trends and the future of luxury housing in Delhi-NCR. Excerpts:
Given the ever-evolving landscape of the Delhi-NCR real estate market, how would you evaluate the growth trends observed this year? Additionally, what are your projections and expectations for the market’s performance in the coming year?
Delhi-NCR has established itself as a dominant force in the luxury real estate market, outpacing cities such as Mumbai and Hyderabad. In the first half of 2024, the region achieved sales of 3,300 luxury units, reflecting a year-on-year increase of 13.8%. With 64% of India’s luxury residential developments concentrated in Delhi-NCR, Gurugram has emerged as a key player, particularly along the Dwarka Expressway and Southern Peripheral Road. The growth trajectory of the luxury segment remains robust. Recent reports indicate that 61% of new residential projects in the first quarter of 2024 were aimed at the luxury market, with Gurugram accounting for 55% and Noida for 35%. Developers are increasingly prioritizing sustainable and technology-driven homes that appeal to affluent buyers, with significant demand from NRIs and HNIs further solidifying Delhi-NCR’s status as the hub of India’s luxury housing expansion. In Gurugram, Sector 46 has become a preferred destination for high-end buyers, offering excellent connectivity to the city’s business centers and access to premium amenities, making it an ideal choice for those seeking an exclusive and well-rounded lifestyle. Additionally, South Delhi continues to attract luxury buyers due to its desirable location. Given the current growth momentum in Delhi-NCR’s real estate market, it is anticipated that the upcoming year will further enhance the demand for real estate.
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The luxury housing market has demonstrated remarkable growth this year, with Delhi-NCR at the forefront of sales among metropolitan areas. What elements are likely to shape this growth trajectory in the future?
The surge in demand for luxury residences is primarily driven by post-pandemic preferences for more spacious and comfortable living environments. Key factors contributing to this trend include economic expansion, a rise in high-net-worth individuals (HNIs), and an expanding millennial population. Millennials, representing 36% of India’s demographic, play a crucial role in this market, as many choose upscale properties as symbols of status and investment opportunities. Furthermore, non-resident Indians (NRIs) are diversifying their investment portfolios by acquiring luxury real estate, viewing it as a stable asset with high returns. Additionally, start-up founders and entrepreneurs are entering this market, motivated by liquidity from equity sales. These dynamics, along with ongoing infrastructure developments, are expected to support the continued growth of the luxury housing sector.
What trends are liklely to shape the future of the real estate market?
Sales of luxury residences in the Delhi-NCR region have surged significantly, outpacing other metropolitan areas, largely due to a growing inclination towards opulent lifestyles and substantial investments from non-resident Indians (NRIs). This expansion is influenced by emerging trends such as sustainability, with a rising demand for green buildings and energy-efficient homes. Furthermore, smart homes equipped with AI technology and integrated living solutions are becoming increasingly popular among buyers. High-net-worth individuals are also showing a preference for branded residences developed by esteemed builders, which provide distinctive designs and high-end amenities. Additionally, the proximity to essential infrastructure plays a crucial role, with properties located near airports and commercial centers experiencing heightened demand due to their hotel-like facilities and excellent connectivity.
New-age homebuyers, particularly from Gen Z, represent a new aspirational demographic. What shifts are you observing in their preferences?
Generation Z and millennials are transforming the concept of luxury real estate. This group prioritizes branded residences that offer exceptional amenities, sustainable features, and advanced smart home technologies. There is a growing trend towards larger homes that incorporate integrated living areas. Furthermore, they perceive luxury properties not only as lifestyle choices but also as valuable investment opportunities. In response, developers are designing homes that reflect these changing preferences, highlighting innovation, distinctive architecture, and high-end amenities. This trend is part of a larger movement towards environmentally-conscious and technology-enhanced living environments.
How is the heightened emphasis on infrastructure development influencing the NCR’s real estate market ?
The infrastructure development in NCR, highlighted by initiatives such as the Delhi-Mumbai Industrial Corridor (DMIC), improvements in Gurgaon, the Dwarka Expressway, and the Jewar Airport, has greatly enhanced the attractiveness of the region’s real estate market. Improved connectivity and supportive government policies have bolstered investor confidence. The newly developing micro-markets within NCR present significant potential for the future and are increasingly recognized as prime locations for luxury residential properties. Although the market experiences periodic fluctuations, the demand for luxury homes continues to be strong, fueled by both end-users and investors looking for substantial returns or rental income prospects.
How do you perceive the evolution of luxury housing in NCR? Which specific micro-markets are expected to take the lead?
The luxury housing sector in Delhi-NCR is poised for significant growth, with Golf Course Road, Dwarka Expressway, and Greater Noida identified as prominent micro-markets. Dwarka Expressway has experienced a remarkable 69% rise in average housing prices, driven by prestigious developments and swift infrastructure advancements. Likewise, Greater Noida has seen a 45% year-on-year increase in prices, bolstered by enhanced connectivity and the forthcoming Jewar Airport. These regions are appealing to discerning buyers who prioritize luxury, convenience, and robust investment opportunities, positioning them as leaders in the luxury housing market of the area.