Housing Appreciation Growth – Know What Put Delhi-NCR Amongst The Top 5 Markets In Asia Pacific

The luxury housing segment in India has observed exponential growth over the years, with key cities leading the charge in demand and price appreciation. Among the top cities, Delhi-NCR stands out, witnessing a remarkable surge in demand and sales across its high-end residential markets. According to a market analysis report by Knight Frank, Delhi-NCR secured fifth place in the Asia-Pacific region for annual price growth in the luxury housing segment. The region reported a 6.5 per cent rise in luxury property prices. This accomplishment places the region in the league of global hubs such as Tokyo and Sydney, highlighting its rising prominence on the international real estate map.

What Is Delhi's Property State?

The report also highlighted that Delhi-NCR ranked as the 19th most expensive market, with an average price of $452 sq ft during Q3 2024. This upsurge indicates the region’s growing appeal among affluent buyers and investors, driven by a blend of infrastructural advancements, lifestyle upgrades, and a burgeoning economy.

Amit Modi, Director, County Group, says, “Delhi-NCR’s ascent to the 5th spot in Asia-Pacific for luxury housing price growth highlights its evolution as a global real estate destination." As the region observes various developments, the growth has impacted the demand for luxury homes. This evolution further reflected buyers’ strong affinity towards larger, luxurious living spaces.

"Additionally, this growth is propelled by HNIs and UHNIs who look for unparalleled quality and exclusivity in their homes.These buyers are well-traveled and are exposed to the global standard of living." Modi said.Features such as concierge services, green spaces, and smart home technologies are now considered essential, making high-end residences highly sought-after.

A Suburban Boom
 

Besides, Delhi-NCR’s micro-markets like Dwarka Expressway, New Gurugram, Southern Peripheral Road, Noida-Greater Noida Expressway, Yamuna Expressway, and more are witnessing increased demand and sales, leading to healthy growth numbers.

Recent reports indicate that 61per cent of new residential projects in the first quarter of 2024 were aimed at the luxury market, with Gurugram accounting for 55 per cent and Noida for 35 per cent.

Commenting on this trend, Sandeep Chhillar, Founder and Chairman, Landmark Group, says, “With increasing investment inclination from NRIs and global institutions, the sector is expected to attract substantial capital inflows."

Experts believe Delhi-NCR’s realty market has the potential to sustain this growth momentum and outperform other metros in the luxury homes segment. The supply of new quality projects continues to solidify its reputation as a luxury real estate hotspot by bringing high-end projects and attracting a mix of domestic and international buyers seeking luxury living and investment opportunities. Commenting on this trend Dr. Gautam Kanodia, Founder of KREEVA and Kanodia Group, says, “We expect this trend to gain momentum and believe the coming years will be transformative for the real estate sector.”

Moreover, Delhi-NCR’s infrastructural development has been a key catalyst for the luxury housing market. Projects like the expansion of metro connectivity and the development of the upcoming Jewar Airport are expected to improve accessibility. These advancements have enhanced the region's appeal, particularly in emerging micro-markets. On the other hand, the demand for gated communities with world-class amenities has surged as homebuyers increasingly prioritize a luxurious and secure living environment. Hence, the city’s dynamic urbanization and growing cosmopolitan population significantly contribute to this rise.

Prateek Tiwari, Managing Director, of Prateek Group, says, “For developers, this is an incredible opportunity to innovate and redefine urban luxury through projects that cater to these changing dynamics. We foresee the sector’s growth being driven by a mix of robust infrastructure projects and a focus on creating iconic developments.”

Looking at the trends, the luxury segment will remain a priority for international and domestic buyers leading Delhi-NCR to become a global benchmark for luxury real estate.