(Commonwealth_India) India‘s real estate market, particularly in the Delhi-NCR region, has shown remarkable resilience during the December quarter, as evidenced by the latest data from Prop Equity, a prominent real estate data analytics firm. They project significant increases in housing sales and new property supply in the region, by 25% and 59%, respectively, compared to last year. Housing sales in Delhi-NCR are expected to reach 12,915 units between October and December 2024, up from 10,354 units during the same quarter in 2023. Similarly, the new supply of housing units is set to soar by 59%, from 7,072 units last year to 11,223 units this year.
Among the nine major real estate markets across India, Delhi-NCR stands out as the only one where both sales and new supply are expected to rise during the current quarter. The other major cities, including Bengaluru, Pune, Hyderabad, Chennai, Kolkata, Mumbai, Navi Mumbai, and Thane, are likely to experience declines in both sales and new supply during the same period. According to PropEquity’s data, the overall housing sales across these nine cities are anticipated to drop by 21% annually, totaling 1,08,261 units in the October-December 2024 period compared to 1,37,225 units last year. Similarly, fresh housing supply across these cities is projected to fall by 33%, declining from 1,27,936 units to 85,765 units.
The decline in housing sales and new supply across most Indian cities is largely attributed to the “high base effect” from the previous year, as explained by Samir Jasuja, CEO and founder of Prop Equity. However, the performance of the Delhi-NCR real estate market remains particularly noteworthy. Industry experts attribute this buoyancy in the region to several key factors, including strong demand from both end-users and investors and the region’s increasing importance as a global corporate hub.
Manoj Gaur, the CMD of Gaurs Group, emphasized the growing prominence of Delhi-NCR in the Indian real estate sector. He pointed out that the region is becoming a major center for global business, particularly with the ongoing construction of the Noida International Airport, which is expected to further boost the area’s infrastructure and appeal. Gaur noted that this has created a robust demand for housing, attracting not just local buyers but also non-resident Indians (NRIs) who are seeking opportunities in the growing real estate market of Delhi-NCR.
Akash Khurana, President and CEO of Krisumi Corporation, echoed these sentiments, highlighting the remarkable performance of the region’s residential market in recent years. He explained that both demand and supply have been strong due to the region’s stable economic growth, rapid infrastructure development, and the presence of trusted, reputable builders. Khurana further mentioned that the Dwarka Expressway in Gurugram, a major micro-market, continues to be a hot spot for homebuyers, with the overall outlook for residential real estate in the region remaining highly optimistic.
Madhur Gupta, CEO of Hero Realty, also weighed in on the positive trends in the Delhi-NCR market. He pointed to significant infrastructure developments in Gurugram, including the inauguration of the Dwarka Expressway and ongoing metro expansions, which have played a crucial role in driving demand. Gupta emphasized that these developments are key indicators of the region’s potential for continued growth, offering further support for the bullish outlook for the real estate sector.
Garvit Tiwari, Director & Co-Founder of InfraMantra, noted that the Delhi-NCR real estate market performed exceptionally well during the festive season compared to last year. While acknowledging the vital role of infrastructure development in driving growth, Tiwari added that demand is being propelled by local developers and well-established builders from other parts of India, including the West and South. This cross-regional interest is another factor contributing to the buoyancy of the market.
The data provided by Prop Equity underscores the importance of the Delhi-NCR region in the broader context of India’s real estate landscape. The area’s strong performance starkly contrasts the declining trends seen in other major cities, reinforcing the notion that Delhi-NCR is not only a leading hub for business and investment but also a thriving real estate market with significant growth potential. With continued infrastructure development, a robust economy, and increasing demand from various buyer segments, the outlook for the region’s residential real estate market looks very promising.
