In a significant shift in the real estate landscape, Delhi-NCR has surpassed Mumbai and Hyderabad to become the top-selling housing market in 2024. The region achieved a remarkable 63% increase in total sales value, culminating in a record Rs 1.53 lakh crore.
- Gurugram alone accounted for 66% of total sales value.
- Delhi-NCR’s home sales share rose from 16% to 23% in 2024.
Gurugram Leads the Charge in Sales Growth
Gurugram has emerged as a powerhouse in the Delhi-NCR real estate market, contributing over Rs 1 lakh crore in sales value. This figure represents a staggering growth of 66% compared to previous years. Samir Jasuja, Founder & CEO of PropEquity, emphasized, “Gurugram, with over Rs 1 lakh crore sales, alone accounted for over 66% of the total sales value in Delhi-NCR.” In 2023, the total sales value in Gurugram was Rs 64,314 crore, nearly half of Hyderabad’s figures, showcasing a dramatic turnaround in 2024.
The weighted average sales price in the region has also increased, reaching Rs 12,469 per square foot, with absorption sizes rising to 2229 square feet. Notably, more than half of the absorption is in homes priced at Rs 2 crore and above, reflecting a growing demand for luxury properties. The surge in sales value is attributed to strong infrastructure development, an expanding corporate presence, and an increase in employment opportunities in the area.
Hyderabad’s Market Faces Significant Challenges
In stark contrast, Hyderabad’s residential market is experiencing a downturn, with new launches reaching their lowest levels since 2020. The absorption rate has decreased by an alarming 49% year-on-year, leading to an inventory overhang that has increased from 17 months in 2023 to 20 months in 2024. Jasuja remarked, “Hyderabad’s residential market witnessed a significant downturn in 2024, with supply and absorption declining by 25% and 49%, respectively.”
This downturn has implications for future growth in Hyderabad, as the market struggles to regain momentum. The total sales value in Hyderabad fell to Rs 1.05 lakh crore, an 18% decline from last year. By comparison, Mumbai’s sales value increased by only 13%, reaching Rs 1.38 lakh crore. The competition between these cities underscores the shifting dynamics in the Indian real estate sector.
Future Outlook for Delhi-NCR’s Real Estate Market
The future of Delhi-NCR’s real estate market looks promising, especially with the introduction of new policies and infrastructure projects under the forthcoming Master Plan for Delhi (MPD) 2041. Jasuja predicts, “The real estate market will further see a surge with the entry of new supply.” With the total sales value of the top nine Indian cities increasing by 12% to Rs 6.73 lakh crore, Delhi-NCR’s rising dominance is evident.
As the market evolves, several key factors are likely to influence future trends:
- Continued infrastructure development and urban planning.
- Increased corporate investments leading to job creation.
- A shift in buyer preferences towards luxury housing.
- Potential policy changes that could stimulate further growth.
- Market resilience in adapting to economic fluctuations.
As Delhi-NCR solidifies its position as a leader in the housing market, industry experts remain optimistic about its trajectory, indicating that the region could continue to attract significant investment and homebuyer interest in the coming years.
