Luxury real estate developers in NCR are reporting a marginal uptick in sales and even selective price appreciation as the economic activity picks up post lockdown.
According to Anarock Property Consultant, luxury housing in NCR comprised over 4% share of total housing sales, increasing marginally over 2019.
Ambience Group, which is executing luxury residential projects in Noida and Gurgaon, said that on a year-on-year basis, the current prices are now north by approximately 8% following rising demand for premium and luxury housing.
“In NCR, the buyer usually can’t afford what he likes and doesn’t like what he can afford. The pandemic has given rise to a new generation of buyers who want luxury if given at a right price,” said Akash Khurana, CEO, Krisumi Corporation.
According to the Anarock report, Noida witnessed total housing sales of 3,240 units in 2020, of which luxury comprised a 9% share, while Gurgaon sold a total of 7,240 units, of which luxury homes comprised a 5% share.
“Affordable and mid-segment housing continued to drive homebuyer demand in 2020, but luxury sales also saw some momentum in NCR despite the pandemic,” said Anuj Puri, chairman at Anarock Property Consultants.
Experts say this was due to the fact that the impact of the pandemic on this buyer-class was not as significant as other budget categories.
And the discounts doled out by developers further made such properties more lucrative especially for the ‘real’ buyers who were prioritising their home bases and willing to spend accordingly.
From the supply perspective, NCR saw new launches of approximately 18,540 units in 2020, of which just 9% was within the luxury segment priced at over Rs 1.5 crore. In 2019, the luxury segment comprised 12% of the 35,280 new launches.
“With evolving dynamics in the Indian real estate, developers are also focusing on offering luxurious amenities to the homebuyers,” said Pankaj Bansal, director, M3M.
Noida, Gurgaon and Ghaziabad were the only cities in NCR that saw new luxury supply in 2020.
“The pandemic has in fact increased the interest in luxury property as people are looking to upgrade to a better lifestyle,” said Nayan Raheja of Raheja developers.
The Delhi-headquartered Ambience Group has also reported an increase in demand, due to which they have revised their pricing.
“The price revision announcement marks the beginning of a new year and a new era. The luxury-premium housing at current rates are still a good bet in the long term,” said Ankush Kaul, president (sales & marketing) at Ambience Group.
Source :Economic Times