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Luxury home sales surge in NCR, where did Noida, Greno and Gurugram fail?

Sagar Patel

By Sagar Patel

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There is a surge in demand for houses worth more than Rs 1.5 crore in Delhi NCR.

A major shift has been seen in the real estate sector in the first quarter of 2024. According to the recent quarterly report of CREDAI NCR, luxury home sales have increased by 40 percent year-on-year. While in the affordable housing sector, a decline of 20 percent has been recorded. A rise in sales of houses priced above Rs 1.5 crore has been especially observed. There are many reasons for this growth in the luxury real estate market such as rising incomes and increasing demand for high-end homes. People are now considering luxury homes as investments.

Noida, Greater Noida and Gurugram have emerged as major hubs for luxury housing, offering modern amenities and a premium lifestyle. The report clearly states that Noida, Greater Noida and Gurugram have emerged as major hubs for luxury housing. The demand for modern amenities and a premium lifestyle has increased in these cities. On the other hand, affordable housing sales seem to be failing.

Why is there a demand for luxury homes?

Manoj Gaur, President, CREDAI NCR, says that the demand for luxury residences has increased as wealthy buyers look for high-end homes with modern amenities. These homes are not just luxury but also a symbol of prestige. The country’s economic growth, overall prosperity and preference for larger homes have been some of the major factors. Moreover, there is no imbalance between supply and demand, and leading developers have launched several projects to meet these demands. Moreover, investment by NRIs has also fuelled this growth, making luxury homes not just status symbols but also attractive investment instruments.

There has been a significant rise in sales of residential units priced above Rs 1.5 crore, reflecting the growing interest in high-value properties. This trend has been especially seen in Noida, Greater Noida and Gurugram, where buyers prefer spacious, well-located and amenity-rich residences.

In contrast, the affordable housing segment has declined by 20 percent. Economic uncertainties and changing buyer interests have contributed to this decline. Potential buyers are looking for better investment opportunities and a better living experience, leading to a shift towards the affordable housing segment.

Sales data for the first quarter of 2024

Around 4,000 luxury units were sold in 2023, while in 2022 the figure was 1,600. This number will increase to 8,200 in 2024, accounting for 11% of total sales. Major cities include Bengaluru, Mumbai and Delhi NCR.

Decreasing demand for affordable housing

Demand for affordable housing (below Rs 50 lakh) declined in the first quarter of 2024. Affordable housing accounted for only 15% of total residential sales. This share was 27% in 2022, which will decline to 18% in 2023 and 15% in 2024.

Sale in Delhi NCR

A total of 10,060 residential units were sold in Delhi NCR in the first quarter of 2024, which is a 164% increase compared to 2023. Affordable housing accounted for only 15% of the total sales. There has been a huge increase in luxury housing in 2024, while there has been a decline in affordable housing. Changing consumer trends and market dynamics have created a divide between luxury and affordable housing.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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