NCR Witnesses a Remarkable Growth in Residential Sales: Know the Budget Category in Demand

The National Capital Region (NCR) of India, which includes Delhi and neighbouring urban areas like Gurgaon, Noida, Ghaziabad, and Faridabad, stands out as a highly dynamic and varied housing market within the country. Over the years, Delhi NCR has undergone swift development in its economic landscape, demographics, and lifestyle preferences of its inhabitants, witnessing a significant population surge, as individuals from various parts of the country migrate in pursuit of enhanced economic prospects. Attracted by the advancement of contemporary infrastructure, elevated living standards, and improved connectivity in the area, this influx of people has consequently generated an increased demand for residential properties.

NCR Residential Market on an Upward Growth Trajectory

The residential real estate market in the country recorded a notable year-on-year growth of 22 percent during Q3 2023. Simultaneously, the housing market in Delhi NCR saw a significant uptick in sales, too, suggesting a growing demand amidst positive industry sentiment.

Approximately 7,800 residential units were sold in the region during the third quarter of 2023. In comparison to the corresponding period in the previous year, sales for Q3 2023 exhibited a notable 44 percent growth. The increase was even more pronounced when contrasted with the preceding quarter, registering a substantial 141 percent growth.

The cumulative sales figure for the initial nine months of the year totalled an impressive 14,840 units. This increase in sales highlights the region’s ability to maintain a steady demand for housing, even in the face of evolving market dynamics in stringent economic conditions.

Prime Budget Ranges in Demand

Interestingly, homes falling within the budget range of INR 1 Crore and above emerged as the foremost choice, making up a substantial 46 percent of the total units sold during this period. Meanwhile, residences priced between INR 25 lakh and 45 lakh secured the second position, accounting for a 16 percent share of the overall units sold.

This inclination towards higher-budget homes signifies a demand for premium housing options, largely indicating the presence of a segment of buyers with substantial purchasing power and a preference for upscale amenities. The fact that the average property prices in the NCR are quoted around INR 5,000/sqft to INR 5,200/sqft also concur the buyer trend. At the same time, homes in the relatively lower ticket-size band of INR 25 lakh to 45 lakh coming second suggests a diverse market, catering to a segment seeking more affordable yet quality housing. This dual preference underscores the dynamic nature of the real estate market, with developers and stakeholders needing to align their strategies to meet the distinct demands of both high-end and mid-range buyers.

Larger Homes Emerge as the Most Preferred Choice

Delhi NCR residential market saw 3 BHK apartments accounting for a noteworthy 43 percent of the total units sold in Q3 2023, indicating increasing preference for this specific housing category. Coming in a close second were 2 BHK units, capturing a substantial market share of 30 percent of the overall sales.

Thus, the increased sales of higher-budget housing properties in the NCR can partly be attributed to a growing preference for larger homes. Larger residences usually involve increased costs due various factors such as expanded space, developer reputation and additional amenities they offer. This trend is further supported by our recent survey on consumer sentiment, which underscores an increased preference for moving towards larger living spaces, particularly in response to the growing prevalence of work-from-home and hybrid work arrangements.

In conclusion, the preference towards the higher budget category could be summed up as a testament to the Delhi NCR’s evolution as a cosmopolitan centre. With the region gaining increasing attention, the luxury residential market is poised for growth, addressing the exclusive requirements of homebuyers.

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