Delhi’s 2023 residential launches breach 2022 levels

Launches almost doubled to nearly 19,000 units in 2023.

According to Cushman and Wakefield, Delhi NCR witnessed the launch of 5,163 residential units during Q4 2023, almost 93% higher than the previous quarter, and 33% higher when compared to the same period last year. 

Noida took the main lead in the supply with a major share of 54% mainly concentrated in the Noida expressway region followed by Noida extension. Gurugram followed with a 46% share in the quarterly supply, with launches concentrated largely in Golf Course Road Extension followed by Sohna road and NH8 Region. 

Here’s more from Cushman and Wakefield:

For the full year 2023, launches stood at 18,796 units, a significant 98% increase over that of last year. Gurugram held a major share of 75% in the annual supply of NCR in 2023. Since the past few quarters, Noida has been witnessing healthy amount of supply and now the trend is pointing towards a major High-End and Luxury market making in-roads into the city. 

High-End & Luxury-Segment continues to take the lead in Q4 Supply 

In Q4-23, High-End & Luxury segment launches strengthened, capturing an impressive 47% market share. Gurugram led the quarterly High-End & Luxury segment, in premium submarkets of Golf Course Road Extension, NH8 region and Sohna Road. Mid segment followed closely with 46% share in the quarterly supply, concentrated in submarkets of Noida such as Noida extension and expressway region. In the coming quarters, the city anticipates growth in launches, propelling the market to new heights in terms of both pricing and quality of living. 

In 2023 annual launches, High-End & Luxury segment achieved a dominant position, comprising 45% of the market, followed closely by the Mid category at 42% and Affordable at 13%. This underscores a growing societal preference for better lifestyle amenities. Majority of the luxury launches throughout the year were concentrated in Gurugram, accounting for 87%, with Noida contributing the remaining 13%. Key luxury submarkets included Golf Course Extension, Dwarka Expressway, and NH8 in Gurugram, and Noida Extension as well as Noida Expressway region in Noida. 

Capital Values and Rental Values maintained during the quarter 

During Q4 2023, Capital values in NCR witnessed an increase of 2% to 3% on a q-o-q basis and 15% to 22% on a y-o-y basis. Gurugram and Noida continued to lead this upward trajectory with an annual growth of 18% - 22%. A similar trend was observed in the rental market as well, during the quarter. 

A marginal growth of 1% to 2% on a q-o-q basis and an annual growth of 15 – 20% with Gurugram and Noida as the front runners. As launches are anticipated in the premium submarkets of both these cities, the growth trajectory in pricing is expected to persist further in the upcoming quarters as well.