The National Capital Region (NCR) has undergone a remarkable transformation, evolving from a hub of dubious real estate activities to one of India’s most dynamic property markets. In the past five years, housing demand in the NCR has shifted dramatically towards the luxury segment.
According to recent data from ANAROCK, over 45% of the approximately 32,200 housing units sold in the first half of 2024 were luxury homes, while only 24% were in the affordable segment. This marks a significant reversal from 2019, when luxury homes accounted for a mere 3% of sales and affordable housing made up 49%. In absolute terms, approximately 14,630 luxury units were sold in the NCR in H1 2024, a staggering increase from the 1,580 units sold in all of 2019. Conversely, the affordable segment saw a sharp decline, with around 7,730 units sold in H1 2024, down from 23,180 units in 2019. Gurugram has emerged as the most active real estate market within the NCR. Official of ANAROCK Group, highlighted that Millennium City saw the sale of approximately 17,570 units across various budget segments in H1 2024. Of these, a notable 59% (around 10,365 units) were luxury homes, while 27% (around 4,710 units) were affordable. This is a stark contrast to 2019, when Gurugram sold approximately 13,245 units, with 43% (around 5,740 units) in the affordable segment and just 4% (around 470 units) in the luxury category.
Noida and Greater Noida collectively saw the sale of around 8,425 units in H1 2024, with 42% (approximately 3,550 units) being luxury homes and a mere 13% (around 1,100 units) in the affordable segment. The mid and premium segments, priced between INR 40 lakh and INR 1.5 crore, accounted for the highest sales share, with 45% (around 3,770 units). In 2019, these cities witnessed the highest sales in the NCR, with approximately 21,770 units sold. Of these, 44% (around 9,565 units) were in the affordable segment and just 4% (approximately 990 units) in the luxury segment. Ghaziabad, Faridabad, Delhi, and Bhiwadi together recorded the sale of approximately 6,205 units in H1 2024. Of these, the luxury segment accounted for over 715 units, while the affordable segment saw around 1,920 units sold. The mid and premium segments saw the highest sales, with approximately 3,570 units. In 2019, these cities sold around 11,900 units, with the affordable segment constituting the highest share of approximately 7,875 units, followed by the mid and premium segments with around 3,910 units. The luxury segment saw just 115 units sold.
The shift in demand has prompted developers to adjust their strategies accordingly. In H1 2024, out of the approximately 24,300 units launched across various budget segments in the NCR, only 2,570 units (11%) were in the affordable segment. In contrast, a massive 18,600 units (77%) were in the luxury segment. This is a stark contrast to 2019, when out of approximately 35,280 units launched, over 47% (around 16,680 units) were in the affordable segment and a mere 12% (around 4,230 units) were in the luxury segment. The NCR’s real estate market is witnessing a paradigm shift, with luxury housing taking centre stage. This trend reflects changing consumer preferences and the region’s evolving economic landscape. As developers continue to cater to the burgeoning demand for luxury homes, the affordable housing segment faces significant challenges, impacting overall housing affordability in the NCR.
