These Positive Developments Define NCR Residential Property Market in 2024
The National Capital Region (NCR), encompassing Delhi along with neighboring urban areas such as Gurgaon, Noida, Ghaziabad, and Faridabad, has emerged as one of India’s most vibrant and diverse real estate markets. It thrives as a bustling economic Centre, offering ample prospects in a fast-growing employment landscape. Fueled by these factors and attracted by advancements in contemporary infrastructure, elevated living standards, and improved connectivity, the demand for residential properties in Delhi NCR has significantly grown in recent years.
Summing Up the Past Year
The residential market in the NCR experienced some notable trends and shifts in 2023.
The region saw 21,364 housing units launched during the year, depicting a substantial 11 percent growth in new supply on a year-on-year basis. Interestingly, over 34 percent of the total launches in Delhi NCR were priced in the INR 1-3 Crore price segment.
Geographically, majority of the new launches were concentrated in specific areas, viz. Sector 79 in Gurugram, Sector 84 in Faridabad, and Greater Noida West. Gurugram emerged as a dominant player, capturing a lion’s share of 55 percent in the overall new supply in Delhi NCR. This underscores Gurugram’s position as a key real estate destination within the region, likely driven by its status as a commercial and economic hub.
In terms of sales, a total of 21,364 units were transacted in Delhi NCR in 2023. The demand was largely skewed towards 3BHK homes, comprising 43 percent of total sales, followed by 2BHK units with a 32 percent share. Gurugram continued to maintain its dominance in sales, capturing 38 percent of the overall sales pie in 2023.
Additionally, Noida and Greater Noida together accounted for 37 percent of sales, indicating a balanced demand across different sub-markets within the NCR.
Positive Demand and Supply Statistics in the First Quarter
Residential sales in the NCR witnessed significant growth in Q1 2024, as evident from our latest data.
When compared to Q1 2023, there was an impressive year-on-year growth of 164% in sales, indicating a substantial increase in demand for residential properties in the region, while residential sales in Q1 2024 witnessed a notable quarter-on-quarter growth of 54% as well, compared to the preceding quarter Q4 2023.
Meanwhile, the region witnessed a robust increase in new residential supply, too, compared to both Q1 2023 and Q4 2023.
When comparing Q1 2024 to Q1 2023, there was a substantial year-on-year growth of 32%, indicating a considerable uptick in the supply of new residential units. Additionally, when compared to the previous quarter, Q4 2023, there was a significant quarter-on-quarter growth of 59% in new supply.
This indicates an accelerated pace of new project launches and development activity, reflecting improving confidence among developers and a proactive approach to meeting market demand.
Conclusion
The residential market in the NCR showed resilience and growth throughout 2023, characterized by significant new supply and robust sales activity. Moving into Q1 2024, the market witnessed remarkable growth in sales, reflecting confidence among buyers and signaling optimism for the future. Simultaneously, new supply also saw a notable increase, suggesting a proactive approach by developers to meet rising demand.
Overall, the robust performance in both year-on-year and quarter-on-quarter comparisons suggests a buoyant and dynamic residential market in the NCR during Q1 2024, marked by substantial development and increased buyer and developer activity. These trends paint a dynamic picture of the residential market in the region and sets a promising tone. With evolving consumer preferences and improving market conditions, the outlook appears optimistic for sustained growth and development in the coming quarters.
