Delhi NCR Becomes India’s Leading Luxury Real Estate Hub in H1 2024, Driven by Infrastructure Growth

The National Capital Region (NCR) has emerged as the epicenter of India’s luxury real estate market in H1 2024, driven by significant infrastructure advancements and rising demand for premium housing. According to JLL’s Delhi-NCR Residential Market Update H1 2024, the region dominated luxury residential launches and sales, propelled by enhanced connectivity in key areas like Dwarka Expressway, Yamuna Expressway, and the Delhi-Mumbai Expressway.

Infrastructure as a Growth Driver

Infrastructure developments continue to transform NCR’s real estate landscape. The Dwarka Expressway has seen residential prices rise by over 30% in the past year due to reduced travel times to Delhi’s business districts and the emergence of commercial hubs. The Yamuna Expressway, benefiting from its proximity to the upcoming Noida International Airport, has become a prime investment destination for residential and commercial projects. Similarly, the Delhi-Mumbai Expressway is boosting real estate prospects by linking NCR to broader national economic corridors.

Demand for Transit-Oriented Developments

Developers are focusing on transit-oriented projects to create integrated communities combining residential, commercial, and recreational spaces. These developments aim to offer a seamless blend of accessibility, amenities, and sustainable living. Manish Jaiswal, Group COO of Eldeco Group, highlighted the growing preference for luxury housing that prioritizes exclusivity and superior quality in regions like Gurgaon and Noida.

Surge in Luxury Housing

H1 2024 saw 23,500 new residential units launched in NCR, exceeding the total launches in 2023. Of these, 6,200 units (26%) were in the luxury segment, compared to just 12% in the previous year. Gurugram led the market with 55% of new launches, followed by Noida with 35%. Gurugram also dominated the luxury housing segment, contributing 88% of the launches in areas such as Dwarka Expressway and Southern Peripheral Road.

Strong Sales Momentum

Luxury housing accounted for 65% of all luxury home sales across India’s top seven cities, with 4,763 units sold in NCR during H1 2024. This represented 19% of the total homes sold in the region, with Gurugram leading in sales, contributing 81% of all luxury transactions. The rapid uptake of new luxury projects reflects strong buyer interest in premium properties offering modern amenities and prime locations.

Table: Gurugram leads in luxury launches in H1 2024 in Delhi NCR

Note: Delhi NCR includes Delhi, Gurugram, Noida, Ghaziabad, Sohna and Faridabad

Noida includes Noida city, Greater Noida and Yamuna Expressway. Luxury residential segment is in the price bracket of INR 5 crore and above.

Noida and Yamuna Expressway Gaining Traction

The Yamuna Expressway is witnessing significant growth as the Noida International Airport nears completion, driving demand for both residential and commercial projects. Yash Garg, Director of M3M Noida, noted that property prices in Noida and Greater Noida have doubled over the past five years, underscoring the region’s evolution into a premier real estate destination.

Developers Respond to Market Demand

Established developers such as DLF Limited, TARC, Sobha Ltd, Paras Buildtech, M3M India, and BPTP are expanding their focus on the luxury segment. Many developers previously catering to affordable housing are now diversifying into high-end projects to meet the rising demand for premium homes.

Future Outlook

The NCR luxury real estate market is expected to maintain its growth trajectory, with luxury home sales projected to exceed 8,000 units by the end of 2024, doubling from the previous year. Developers are actively acquiring land in prime locations to launch new projects in response to strong buyer demand.

While infrastructure improvements have driven this growth, experts emphasize the need for sustainable urban planning to avoid congestion and environmental challenges. As corridors like Dwarka Expressway and Yamuna Expressway continue to develop, NCR’s luxury real estate market is poised to remain a vital driver of India’s urban expansion, offering lucrative opportunities for investors and homeowners.