Delhi-NCR Real Estate Market: Affordable Housing Sales Share Dips to 24% in H1 2024, Luxury Sales Touch 45%

The real estate market in Delhi-National Capital Region (NCR) has witnessed a significant transformation in the first half of 2024, with a notable shift in the dynamics of housing sales. According to a recent report by Anarock, a leading real estate consultancy, the luxury housing segment has surged to account for 45% of total sales, while the share of affordable housing has declined to 24%. This marks a dramatic change from 2019, when luxury homes constituted a mere 3% of the market, and affordable housing dominated with a 49% share.

Surge in Luxury Housing Sales

Gurugram, often referred to as the Millennium City, has emerged as the epicenter of this trend. In H1 2024, Gurugram saw the highest luxury sales in Delhi-NCR, with approximately 10,365 units sold. This is a significant increase compared to Noida and Greater Noida, which together accounted for 3,550 luxury units. The remaining luxury sales were distributed among Delhi, Ghaziabad, Faridabad, and Bhiwadi, which collectively sold 715 units.

This surge in luxury housing can be attributed to several factors. Firstly, the growing presence of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) in Gurugram has driven demand for premium properties. Additionally, there has been a notable increase in affluent millennials who prefer luxury homes close to their workplaces. The investment potential and lifestyle benefits associated with luxury homes have also made them increasingly attractive to buyers.

Decline in Affordable Housing Sales

In contrast to the booming luxury segment, the affordable housing market has seen a decline. In H1 2024, approximately 4,705 affordable units were sold in Gurugram, followed by around 1,920 units in other cities, and over 1,100 units in Noida and Greater Noida. Overall, the affordable segment accounted for 7,730 units, a sharp drop from the 23,180 units sold in 2019.

This decline is partly due to a shift in buyer preferences towards mid and premium segments. Many buyers are now seeking homes that offer a balance between affordability and premium features, leading to a decrease in demand for strictly affordable housing.

Changing Market Dynamics

The total housing sales in Delhi-NCR for H1 2024 were approximately 32,200 units. Of these, luxury units accounted for 14,630, marking a significant increase from the 1,580 units sold in the entire year of 2019. This shift indicates a growing preference for luxury homes, driven by the desire for better investment returns and enhanced lifestyle amenities.

In terms of new supply, the market has also adapted to meet changing demands. In H1 2024, the luxury segment saw over 18,600 units launched, compared to 4,230 units in 2019. Conversely, the launch of affordable units decreased from 16,675 units in 2019 to just 2,570 units in H1 2024.

Performance in Other NCR Cities

Noida and Greater Noida together saw approximately 8,425 units sold in H1 2024. Of this, 42% were luxury homes (approximately 3,550 units), and only 13% were affordable homes (approximately 1,100 units). The mid and premium segments, priced between ₹40 lakh and ₹1.5 crore, accounted for the highest sales share, with 45% (approximately 3,770 units).

In 2019, these two cities had the highest sales in NCR, with approximately 21,770 units sold. Affordable housing constituted 44% of sales (approximately 9,565 units), and luxury homes accounted for just 4% (approximately 990 units). The mid and premium segments together made up 52% of sales, with 11,215 units.

Ghaziabad, Faridabad, Delhi, and Bhiwadi collectively saw approximately 6,205 units sold in H1 2024. Of these, the luxury segment accounted for more than 715 units, while the affordable segment saw 1,920 units sold. The mid and premium segments had the highest sales, with approximately 3,570 units.

Back in 2019, these cities had sold approximately 11,900 units, with the affordable segment having the highest share at 7,875 units. The mid and premium segments followed with approximately 3,910 units, and the luxury segment had only 115 units sold.

Anuj Puri, Chairman of Anarock Group, highlighted the remarkable transformation in the NCR luxury housing market. "The luxury housing market in NCR has seen a transformation with luxury segment sales soaring to 45% in the first half of 2024, up from just 3% in 2019. Gurugram stands out as the epicenter of this trend, contributing nearly 60% of luxury sales in the region."

Conclusion

The Delhi-NCR real estate market has undergone a significant shift in 2024, with luxury housing sales dominating and affordable housing witnessing a decline. Gurugram has emerged as the most active market, leading the trend with its substantial luxury sales. This change reflects evolving buyer preferences, driven by investment potential and lifestyle aspirations. As the market continues to adapt to these trends, the dynamics of housing sales in NCR are likely to evolve further.