Average value of premium under-construction housing projects in Gurgaon increased annually by 22%, shows a recent report by property brokerage firm Savills India. According to the report, rates of completed projects in the Millennium city also showed an annual appreciation of 15%.
“With 30% Y-o-Y increase, Dwarka Expressway registered the highest growth in capital values for under-construction projects in 2022. The price hike of plots is significant with 32% Y-o-Y growth in 2022. Dwarka Expressway with 50% Y-o-Y increase registered the maximum growth in plotted development,” says the report.
Closely following Gurgaon in terms of price growth in 2022 was its NCR peer Noida, where values of premium under-construction properties showed an average increase between 9 and 17%. For completed projects, the increase stood at 12% year-on-year.
The analysis covering premium residential markets in Mumbai, Delhi, Bangalore, Gurgaon and Noida showed each housing market showed considerable price growth in 2022.
In Bangalore, capital values in 2022 for both completed and under-construction premium housing projects increased in the range of 4-8% Y-o-Y in different micro markets. With 2% Y-o-Y growth, Delhi continued to witness increase in average capital value for land parcels in 2022. Mumbai showed 1% Y-o-Y rise in average capital values for completed properties and an increase of 3% in average capital values for under-construction properties.
Demand side growth in premium residential segment has been evident despite the RBI increasing the benchmark lending rates by 225 basis point in the year 2022, the report points out.
“The market movement, while being reliant on end users, has also benefited from investors seeking medium to long-term investment opportunities in both under construction and secondary spaces. Investor interest was also prominent for leisure locations offering both rental and capital appreciation opportunities. To capitalise on the new growing demand for second homes, developers have been seen making a bee line for land parcels ranging between 2,000 sq metres and 3 acres in locations such as Goa, Alibaug, Kasauli, etc. The heightened demand is leading to both paucity of supply and increase in values for clear title land parcels,” says Shveta Jain, managing director, residential services, Savills India said.
Activity in the premium to luxury residential segment in NCR, Mumbai and Bengaluru is likely to remain robust in the first two quarters of 2023, she adds.
Know about: Gurgaon flats
Rental values grow too
Demand in the rental market has also gained momentum as professionals have returned to their work locations, the report adds.
| Rental values trend | |
| City | Y-o-Y increase as of 2022 |
| Delhi | 11% |
| Gurgaon | 12% |
| Noida | 13% |
| Mumbai | 4% |
| Bengaluru | 4% |
| Source: Savills India Research | |
While Noida witnessed the highest growth in rental values with 13% Y-o-Y increase, Gurgaon stood second at 12% increase.
Know about: Sector 110 Gurgaon
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
sunita.mishra@proptiger.com
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