Written by Sanju Bhadana:

The national capital region (NCR) has recorded a significant growth in new property launches in the past one year. This is attributed not just to the infrastructure developments that are happening around Delhi to ease commute and enhance attractiveness of corporates and tourist but also the rising aspirations and affluence of the middle class, growing number of HNIs/UHNIs, and not to forget the interest of NRIs, further upping its reputation in terms of the cosmopolitan culture.

According to PropEquity data for the September quarter of 2024, the new launches have risen 221% Y-o-Y and 29% Q-o-Q to 13,311 units. With this, NCR’s share in total new launches has risen to 14% from 4% a year ago thereby outperforming Bengaluru and Hyderabad at 12% each.

The new launches have gone up drastically from 4147 units in Q3 CY2023 to 7072 units in Q4 CY 2023, 11,948 units in Q1 CY 2024, 10,308 units in Q2 CY 2024 to 13311 units in Q3 CY 2024. NCR remains the only market in the September quarter where new launches have exceeded sales. In fact, NCR has seen launches exceed sales in every quarter of 2024. This, however, was not the case in 2023.

Infrastructure boom

The twin cities of Noida and Gurugram have done exceptionally well in terms of infrastructure development. From Dwarka Expressway that connects Delhi to Gurugram to Delhi-Mumbai industrial corridor and the soon-to-be-operational Noida International Airport, the NCR has witnessed a transformation like never before. The ever-expanding metro rail and high-speed rail networks have eased the commute-to-work culture from nearby cities thereby driving up the economy.

Irresistible proposition for developers & investors

The growing interest of NRIs and HNIs/UHNIs along with stock market gainers, startup founders and young millionaires in the region’s real estate have also played a huge factor in driving up the demand. The streamlining of regulatory challenges and policy uncertainties have also played a key role in increasing transparency. Not to forget the massive returns some of the micro markets have given post-covid have induced fence-sitters and those looking to further elevate their income to invest in second homes.

Noida is no longer considered a poor cousin of Gurugram. The city has taken to premiumisation in terms of both amenities and pricing of real estate properties. Owing to the soon-to-be-operational Noida international airport, the leasing activities in office and retail spaces have also gone up signalling a positive outlook and encouraging growth trends in the region.

The two regions also have a multiplier effect on the economy of Uttar Pradesh and Haryana. Delhi-NCR’s real estate market has attracted highest private equity investment of USD 633.3 million during January-June period of this year as investors look to encash high demand for prime office space and luxury housing, according to Cushman & Wakefield. The strategic location, burgeoning economy, and growing population make it an irresistible proposition for developers and investors alike.

Over 100% rise in price between 2021-24

The PropEquity data further highlights the sales pattern in NCR. Sales have grown 22% Y-o-Y and 3% Q-o-Q to 10,263 units gaining the distinction of being the only city to record growth in both new launches and sales! NCR’s share in total sales have also risen from 6.6% in Q3 CY 2023 to 10% in Q3 CY 2024.

The primary micro-markets like Golf Course Extension, SPR, Dwarka Expressway etc. in Gurugram and Noida Expressway, Noida extension and Central Noida in Noida have seen a huge growth in prices. Between July 2021 and July 2024, Dwarka Expressway and Golf Course Extension Road have seen weighted average price of new launches rise by 101% and 53%, respectively. Similarly, Noida expressway saw a rise of 165%.

Conclusion

With homebuyers gravitating towards these micro markets in NCR tells a lot about how big a role infrastructure development has played in the growth of real estate in this region. The spurt in new launches is an opportunity for homebuyers to choose the best real estate project that not just fulfils their lifestyle aspirations but also financial goals.

(The author is managing director, 4S Developers)