International property consulting firm Savills has predicted a continuous growth in demand for high-end and luxury property in the realty hubs of Mumbai, Delhi, Gurugram and Noida in the second half (H2) of 2022. In its report, Savills on Tuesday revealed that the segment has also done well during the first half (H1) of the year with all top cities showing capital gains in their on-going projects.
Luxury launches in 2022
Savills data shows Delhi witnessed the launch of approximately 1,168 units in premium to luxury segment in H1 2022. Gurugram witnessed a substantial increase in launches from 272 Units in H1 2021 to 1,574 units in H1 2022. Noida witnessed the launch of 269 units in H1 2022 when compared to 910 units in H1 2021.
Delhi property prices grow 4 per cent
The Savills report shows that Delhi prices have grown at the rate of 4 per cent, year-on-year (YoY) and continues to witness increase in average capital value for land parcel in H1 2022. The South West region of Delhi, with 11 per cent YoY, saw the biggest hike in land price in H1 2022. Lutyens and southern parts of the city have witnessed a rise in demand for luxury floors and prices too, which shot up by 7 per cent for the same period. The circle-rate breather resulted in reviving sales volumes in s
Shveta Jain, Managing Director, Residential Services, Savills India, said, “The residential market is on its path to recovery after a prolonged period of uncertainty. In some cities, the residential market is back to pre-COVID levels while the others are moving along in that direction. With trends like hybrid work acquiring a strong foothold and permanence, the residential market has gained momentum and, evidently, for the larger home segment. The need for larger spaces has led to homebuyers’ sentiment leaning towards 3 and 4bhk apartments with large terraces and roof terraces, plots, standalone bungalows, farmhouses, villas, and holiday home locations.”
Gurugram under-construction property prices increase 10 per cent
According to Savills, the capital values of completed and under-construction projects increased 10 per cent YoY in H1 2022. Gurugram witnessed a steady growth in the capital values with the YoY increase confined to 12 per cent in the last few quarters. With 12 per cent YoY, Dwarka Expressway registered the highest growth in capital values for both completed as well as under-construction projects in H1 2022.
“The city overall witnessed an increased demand for larger apartments with areas of 2,500 sq ft and above in high-rise developments and top floor with terrace units in builder floor projects. The price hike of the plots was significant with 41 per cent YoY in H1 2022,” the report stated.
In Gurugram, the price range in some micro-markets of the city has expanded, creating a spectrum of varied capital values. Newer condominiums with premium facilities have witnessed better price appreciation. This reflects the change in the behavior of buyers, as they are becoming more quality conscious.
Noida new and under-construction properties appreciate
Capital values of real estate projects, with respect to the under-construction properties shot up by 9 to 11 per cent in a YoY basis during H1 of 2022. Ready to move properties showed a 9 per cent rise. Properties in sector 150 witnessed a 13 per cent YoY increase in prices. Under-construction projects too saw a 11 per cent growth.
Mumbai rental values rise
According to Savills, capital values and rental values of Mumbai registered an increase of 2 per cent YoY. The city witnessed an increase of 2 per cent YoY in average capital values for completed properties and an increase of 1 per cent YoY in average capital values for under-construction properties. The micro market of Central Mumbai witnessed the maximum increase of 4 per cent YoY on account of consistent demand for completed as well as under-construction properties. The city witnessed increased traction in the luxury segment. Large bungalows and prime residences were preferred, especially by end-users, as per the report.
Source : BT