Few launches in the luxury housing segment and the fear of missing out on the most desirable properties is making these units fly off the shelf in Delhi-NCR

Recently, two listed real estate developers in Delhi-NCR launched luxury properties ranging from ₹7 crore to ₹12 crore, which realtors reported were quickly sold out. Demand for luxury and ultra-luxury residences among rich Indians has increased, according to real estate experts, owing mostly to a lack of launches in the luxury housing market and a fear of missing out (FOMO) on the best properties in town.

There is less supply to meet rising demand for luxury residences, particularly in places like Gurgaon and Delhi. Rich investors in Delhi, who used to buy bungalows, are now seeking housing complexes with contemporary facilities, particularly dedicated parking, which is a huge difficulty, according to real estate specialists.

DLF sold over 1000 premium home units at Privana South in Gurugram for ₹7200 crore in just three days of pre-launch. The enclave will have 1,113 premium homes spread across seven storeys. These would be four-bedroom flats with penthouses. ‘DLF Privana South’ will be part of a bigger development, DLF Privana, which spans roughly 116 acres in Sectors 76 and 77.

TARC Ltd, a listed real estate business, proposes to invest over ₹1200 crore in a premium housing complex with over 400 apartments in Central Delhi. TARC Kailasa is a 1.7 million square foot complex sprawled over 6 acres of land on Patel Road in Kirti Nagar. Andy Fisher Workshop, a Singapore-based architectural studio, will design the five high-rise structures, each with 35 stories. Arabian Construction Company is the building contractor.

TARC MD and CEO Amar Sarin stated that luxury housing is here to stay as customers, particularly those who live in bungalows, seek to upgrade to apartments with modern amenities that meet all of their needs, particularly in terms of security and parking.

Luxury initiatives gain traction.

“This is a continuation of the pattern that began in March of last year. Overall, demand in luxury residences is high, particularly among experienced real estate developers. This trend is likely to continue till 2024. “We can expect more launches in the luxury category as developers continue to buy land,” said Mudassir Zaidi, Executive Director – North at Knight Frank India.

According to Ashim Chowdhury, Vice President – Research at ANAROCK Group, the DLF Project, which was successfully launched in Sector 76/77 Gurgaon on the Southern Peripheral Road (SPR), demonstrates the micro market’s future potential.

The proximity to the National Highway, as well as the additional access to the Dwarka Expressway and the Mumbai Expressway, make it a sought-after position in the city. A premium product of this size, with over 1,000 units, is expected to pave the way for many more luxury releases in the near future, as well as create a new price standard. Prices in Gurgaon are already rising as the focus switches from inexpensive and mid-range to high-end and luxury developments in burgeoning micro markets, he added.

According to ANAROCK Research, 4,76,530 units were sold in the top 7 cities in 2023. Luxury house sales priced over ₹1.5 crore accounted for 25% of the total, with around 1,19,130 units sold. In terms of market share, luxury sales increased by 7% between 2023 and 2022. If we look at the data by unit, the number of luxury units sold in 2023 has increased by 81% year on year, from around 65,677 in 2022 to over 1,19,130 in 2023. This reflects the increasing demand for luxury properties in the top seven cities.

NRIs are increasingly investing in luxury houses.

DLF’s recent Privana South project in Gurugram sold over 1000 luxury home units for ₹7200 crore within three days of pre-launch, indicating strong demand for such properties

“Buyers continue to invest in trustworthy developers with a proven track record. According to Amit Goyal, managing director of India Sotheby’s International Realty, the demand for luxury residences is strong since capital markets are performing well, individuals have more cash at their disposal, and they want to move to nicer houses.

The fact that a large amount of demand for this product originated from NRIs illustrates that the sector continues to look to India for their retirement requirements. 

The rise in demand is primarily due to lifestyle upgrades.

The wealthy prefer ultra-luxury residences for a variety of reasons. These apartments are more than simply a status symbol; they represent a lifestyle shared with others. “The demand for these homes is driven by a desire for superior amenities, a healthy lifestyle, spacious living areas, distinctive designs, and a prestigious address,” stated Ramesh Ranganathan, CEO of K Raheja Corp houses.

“Ultra-luxury developments account for 70-75% of our sales, followed by the mid-premium/luxury market. A major portion of our luxury sales come from Mumbai, where we have projects ranging from 3 crore to 50 crore. These selective clientele choose to invest in a personalized and unique lifestyle when it comes to luxury real estate,” he explained.

Delhi against Mumbai

Buyers in Delhi have always preferred bungalows over apartments, resulting in a horizontal real estate market.

Delhi is facing a pattern that Mumbai experienced decades ago. The restricted availability of premium residential homes contributes to their success. Also, the developer’s track record is driving increasing sales traction. In contrast, Mumbai buyers have several options in the luxury category, which is one of the reasons why it can take a developer six months to a year to exhaust inventory in the segment,” explained Ritesh Mehta, senior director and head (West and North) of residential services and developer initiatives at JLL.

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Source : Hindustan Times