The premium residential market in the major cities witnessed 3-18% price appreciation compared to H1 2022, according to the latest report by Savills India, a global property consulting firm.
Under-construction projects in these cities have witnessed higher appreciation in capital values as compared to completed projects. Additionally, with the residential market picking pace and capital values accelerating in the recent months, buyers are prompted to make buying decisions as they anticipate further strengthening of prices.
Buyers are preferring larger homes and are also looking to upgrade from existing smaller apartments, hence the demand for large apartments and penthouses in South Mumbai and Central Mumbai has risen.
Delhi witnessed an average increase of 11% YOY in the capital value of luxury floors while South-East Delhi stands out with the highest price appreciation of 15% on an annual basis, followed by the South-West & Central 2 micro-markets which registered a YOY growth of 14% & 13% respectively.
“The premium residential market in key cities has witnessed remarkable momentum, leading to a significant appreciation in property values throughout the year. Recognising this demand, developers have responded with notable new launches in this category,” said Shveta Jain, Managing Director, Residential Services, Savills India.
The capital values for completed and under-construction properties in Gurgaon have significantly escalated in the range of 11% to 40% YOY across all micro-markets.
New launches of luxury units in Gurugram increased more than 3X in the H1 2023 to 4,910 units approximately. With 2,200 units launched in H1 2023 in the premium segment, Bengaluru saw a 30.3% YOY decline.
“With the buoyancy expected to prevail, the demand for premium properties is driven by both end buyers seeking long-term investments and upgrades to their current homes. Properties like villas, golf-facing developments, farmhouses, and independent homes continues to captivate buyers, further fuelling the market’s growth. The successful launches by grade A developers in NCR and Bengaluru stand as a testament to the enduring interest of buyers in the premium residential segment,” said Jain.
Source : ET