The National Capital Region (NCR) is experiencing a remarkable transformation in its real estate landscape, evolving from a centre of questionable property dealings to a vibrant and dynamic market. Recent data reveals a significant shift in housing demand towards the luxury segment. According to research by ANAROCK, over 45% of approximately 32,200 housing units sold in the first half of 2024 were luxury homes. This marks a substantial turnaround from 2019, when luxury homes constituted a mere 3% of sales, while affordable housing dominated at 49%.
In absolute numbers, around 14,630 luxury units were sold in the NCR during H1 2024, a staggering rise from just 1,580 units in all of 2019. Conversely, the affordable housing segment has faced a dramatic decline, with approximately 7,730 units sold in the same period, down from 23,180 units in 2019. Gurugram has emerged as the frontrunner in the NCR’s real estate market, witnessing robust activity. ANAROCK officials reported that Millennium City sold around 17,570 units across various price points in H1 2024, with luxury homes making up 59% (about 10,365 units) and affordable homes accounting for 27% (around 4,710 units). This is a stark contrast to 2019, when Gurugram sold approximately 13,245 units, with 43% (about 5,740 units) in the affordable segment and only 4% (around 470 units) in the luxury category. Noida and Greater Noida collectively recorded the sale of approximately 8,425 units in H1 2024, with 42% (approximately 3,550 units) classified as luxury homes. In contrast, the affordable segment represented a mere 13% (about 1,100 units). The mid and premium segments, priced between INR 40 lakh and INR 1.5 crore, captured the highest sales share at 45% (approximately 3,770 units).
The market shift has prompted developers to recalibrate their strategies. In H1 2024, of the 24,300 units launched across various segments in the NCR, only 2,570 units (11%) were affordable, while a substantial 18,600 units (77%) targeted the luxury market. This is a sharp departure from 2019, when over 47% (around 16,680 units) of the 35,280 units launched were affordable, with a mere 12% (around 4,230 units) aimed at luxury buyers. This transformation reflects changing consumer preferences and a burgeoning economic landscape. As the luxury housing market flourishes, the affordable segment faces significant challenges, potentially impacting overall housing affordability in the NCR. This shift raises concerns about social equity and the ability of various income groups to access quality housing, underscoring the need for a balanced approach in real estate development. Sustainability also plays a critical role in this evolving market. As luxury homes proliferate, it is essential for developers to incorporate sustainable practices, such as energy-efficient designs and eco-friendly materials. This not only aligns with global sustainability goals but also enhances the market appeal of these properties, offering long-term benefits for both developers and homeowners alike.
