In a notable trend, premium residential under-construction properties across major Indian cities such as Delhi, Noida, Gurugram, Bengaluru, and Mumbai have experienced a sharp price increase, rising by up to 53% in the first half of 2024 compared to the same period last year. Property consultancy Savills India attributes this surge primarily to the high demand for new launches offering superior amenities and configurations.Gurugram has emerged as the frontrunner, reporting the steepest price hike among these cities. The under-construction projects in these urban hubs are now costing up to 30% more than ready properties, highlighting the premium buyers are willing to pay for advanced features and better living standards.
The rise in prices is not confined to urban areas alone. North Goa, a favoured second-home destination, has seen property prices for villa projects escalate by up to 28%. This increase is driven by the widespread adoption of ‘work from anywhere’ models and the appealing rental yields that the region offers.The buoyant market sentiment during the first half of 2024 has been propelled by investor interest in new launches and end-users seeking ready-to-move-in properties. According to the Managing Director of Residential Services at Savills India, older developments in Grade-A corridors have also witnessed increased demand from both buyers and tenants, further buoyed by stable interest rates.The surge in demand reflects a robust and dynamic growth within India’s prime real estate markets. Both first and second-generation homebuyers are increasingly gravitating towards Gurugram, drawn by its promise of an elevated lifestyle. This trend has been bolstered by a series of residential project launches post-COVID-19, as developers rush to meet the latent demand.
The real estate market’s significant uptick is evident across all segments. Gurugram, in particular, has benefitted from the completion of the Dwarka Expressway, which has transformed the city’s dynamics. Prominent areas such as Sector 37D, Sector 71, Dwarka Expressway, and Southern Peripheral Road now offer a range of housing options, making the city appealing to both end-users and investors.Industry experts note an increased preference for larger living spaces and premium amenities, a trend driven by the aspirations of high-net-worth individuals (HNIs) who are well-versed with global luxury standards. This shift towards premiumisation is evident in both the demand for high-end residential properties and the substantial capital values for under-construction projects, which have risen sharply.
In Mumbai, under-construction property prices have risen faster than ready properties, with capital values increasing by 5% year-on-year for the former. The micro-markets of Central Mumbai and Western Suburbs have seen substantial increases, ranging from 12% to 21% year-on-year, driven by new launches at premium prices.Bengaluru’s premium residential market has also witnessed growth, with under-construction projects experiencing a 7.2% year-on-year increase in capital values. The completion of new metro routes and strong demand from HNIs have been key factors driving this appreciation.Overall, the average capital values of completed and under-construction properties in these key cities have hit new peaks, with significant year-on-year growth. The rising interest in luxury residences and the trend towards upscale, sustainable living are set to continue shaping the Indian real estate market in the coming years.
