The Rise of Luxury Housing Sales in NCR
The National Capital Region (NCR) has experienced a significant turnaround in its real estate market in recent years. Once associated with unscrupulous practices, the region has now emerged as one of the country’s most vibrant realty markets. One of the noteworthy trends in the NCR housing market is the increasing demand for luxury housing.
Luxury and Affordable Segment Sales
According to the latest data from ANAROCK, in the first half of 2024, out of approximately 32,200 housing units sold in NCR, more than 45% belonged to the luxury segment. This is a stark contrast to 2019 when sales of luxury homes accounted for a mere 3% of the total sales. At the same time, the share of affordable housing sales decreased from 49% to 24%.
In specific areas of NCR such as Noida and Greater Noida, approximately 8,425 units were sold in the first half of 2024. Among these, a significant percentage of 42% (approximately 3,550 units) were luxury homes, while the affordable segment accounted for only 13% (approximately 1,100 units) of the sales. The remaining 45% of sales were in the mid and premium segments, with prices ranging from INR 40 lakh to INR 1.5 Crore. In 2019, Noida and Greater Noida also experienced high sales, with 44% of units being sold in the affordable segment and only 4% in the luxury segment.
Other regions of NCR, including Ghaziabad, Faridabad, Delhi, and Bhiwadi, collectively witnessed sales of approximately 6,205 units in H1 2024. The luxury segment constituted around 715+ units, while affordable housing comprised 1,920 units. However, the mid and premium segments were the most popular, accounting for approximately 3,570 units. In comparison, in 2019, these regions saw 11,900 units sold, with the majority of sales (approx. 7,875 units) in the affordable segment, followed by the mid and premium segments (approx. 3,910 units). Very few luxury homes, just 115 units, were sold.
Shift in Supply Dynamics
While luxury home sales have witnessed a remarkable ascent, the supply dynamics in the NCR market have also changed accordingly. Developers have responded to the rising demand for luxury housing by increasing supply in this segment, while reducing the number of affordable units. Out of approximately 24,300 units launched during H1 2024, only 11% (approximately 2,570 units) were in the affordable segment. In stark contrast, 77% or a whopping 18,600 units were launched in the luxury segment.
In 2019, out of approximately 35,280 units launched in the NCR region, 47% (approximately 16,680 units) were targeted for the affordable segment, while only 12% (approximately 4,230 units) were designed for luxury buyers.
The Future Outlook
The dramatic shift in the NCR’s housing market points towards evolving buyer preferences and the improving economic condition of the region. As luxury housing gains traction, developers and investors are dedicating more resources to cater to this lucrative segment. However, it is important to note the implications of this trend on housing affordability. The reduced focus on affordable housing could put upward pressure on prices, limiting the options available for potential homebuyers.
As the NCR transforms into a predominant luxury housing market, the region must strike a balance between meeting the growing demand for luxury homes and ensuring accessibility for the broader population. This can be achieved through a combination of government policies, incentives for affordable housing, and close collaboration between developers and regulatory authorities.
Overall, the rise of luxury housing sales in the NCR signals a prosperous future for the region’s real estate market. However, stakeholders must remain cognizant of the need for a diverse range of housing options to address the varying requirements and aspirations of homebuyers across all segments, ultimately ensuring a sustainable and inclusive realty market in the NCR.
