Repo Rate Relief and New Inventory Boost Home Sales in Delhi-NCR, Setting a New Sales Record

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Residential sales in Delhi-NCR have reached a 10-year high in the first half of 2023, with a total of 30,114 units sold. This surge in sales can be attributed to two primary factors. Firstly, the pause in the repo rate hike cycle in 2023 provided relief to homebuyers, making it an opportune time for them to invest. Secondly, the introduction of new inventory in the market by credible developers has been well received by interested buyers who have been eagerly awaiting ready-to-move-in options.

Gurugram emerged as the frontrunner in the residential market, accounting for 52% of the total units sold in the first half of 2023. Noida and Greater Noida combined contributed 32% to the sales volume, while Ghaziabad, Delhi, and Faridabad accounted for 12%, 2%, and 2% respectively. This growth represents a 3% annual increase compared to the first half of 2022.

Despite the record-breaking sales, the number of new launches in the market has dipped slightly, declining from 34,507 units in the second half of 2022 to 29,738 units in the first half of 2023. However, developers are actively working on new land acquisition to meet the future demand for housing projects. Peripheral areas of NCR are witnessing the launch of amenities-rich group housing, independent floors, and gated plotted developments that cater to the evolving needs of homebuyers.

One notable trend in the market is the increasing demand for residential properties priced above Rs 1 crore. This segment accounted for 65% of the total sales volume in NCR during the first half of 2023, showcasing the growth potential and profitability in the high-end real estate sector. High-net-worth individuals and affluent families are driving this surge in demand for spacious and independent homes.

Conversely, the sales volume for properties priced between Rs 50 lakh and Rs 1 crore has declined from 33% in the first half of 2022 to 22% in the first half of 2023. The percentage share for properties priced below Rs 50 lakh has also decreased from 25% to 13% in the same period. Affordability concerns and changes in lending costs have affected the decision-making of buyers in these lower price segments.

Gurugram remains a key hub for primary residential sales in NCR, with its share continuously expanding since the second half of 2019. In the first half of 2023, Gurugram accounted for an impressive 82% of the total new launches in NCR. The city’s high-rise living options have attracted both first-generation and second-generation homebuyers, especially after the pandemic outbreak. Ongoing efforts to enhance connectivity within Gurugram and its peripheral areas further support the real estate boom in the region.

The completion of the Dwarka Expressway has become a significant catalyst for investment in the area. Real estate developers in NCR are acquiring land and forming partnerships with landowners to meet the growing demand for residential projects. The upcoming infrastructure upgrades, including the Dwarka Expressway, the Delhi-Mumbai Expressway, and the Gurgaon Metro expansion, are expected to fuel the growth of the real estate sector in NCR in the coming years.

Developers have also shifted their focus back to Delhi’s real estate market, as homebuyers increasingly seek well-planned community living with comfort, privacy, and security. The demand for luxury gated high-rise communities in Delhi has transformed the market from a secondary option to a primary development opportunity.

Also Read:-Delhi-NCR Dominates Real Estate Growth: Highest Rise in Housing Prices Among Top Indian Cities

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