Delhi’s Q4 residential sales hit record highs

Over 12,000 units were sold in the quarter.

According to JLL, demand for high-end homes in Delhi increased both on a quarterly as well as yearly basis. With more than 12,000 units sold in 2022, this was the highest ever quarterly sales recorded in the Delhi NCR market. 

Gurgaon led the quarterly sales, contributing 72% of the total, with newly launched projects in the Dwarka Expressway submarket witnessing great response.

Here’s more from JLL:

Noida contributed 19% of the sales, with Noida-Greater Noida Expressway having the highest number of sales. As there were no launches in Delhi, it only contributed 9% to the residential sales. New project launches by established developers received good traction from both end-users and investors who have returned to the market and the high-end segment.

New launches in the high-end segment surge in 2022

The year 2022 recorded the highest ever launches in the high-end segment in the Delhi NCR residential market. Encouraged by robust sales and strong economic fundamentals, developers launched residential projects in the Suburban submarket as well as in established micromarkets. Launches increased by 72% in 4Q22 compared to the previous quarter, as it was the festive season.

In the quarter, a majority of the launches were witnessed in Gurgaon (77%), followed by Noida (23%). In Gurgaon, Dwarka Expressway saw the majority of launches, with four new buildings by developers such as Smartworld Developers, Elan Group and Sobha Ltd. Noida witnessed the launch of only one project at Sector 107, Noida-Greater Noida Expressway.

Rents and capital values increase in the quarter

With new launches and demand picking up, prices in the high-end segment have increased. The increase in prices was seen across the spectrum of buildings that have high demand and less ready-to-occupy inventory. New phases of existing buildings are also being launched at higher prices. Rents remained stable across most submarkets.

Prices are expected to increase further, with robust sales and planned new launches in the coming quarter.

Outlook: Demand expected to remain robust in 2023

Sales are expected to witness some sluggishness in the next 2-3 months as rising prices and higher acquisition costs may pull demand down for a short time. However, sales momentum is likely to endure in 2023 on the expectation of moderating inflation, supporting a reversal in repo rate hikes.

Many land transactions for developing residential projects by established as well as regional developers have been noted in Delhi NCR. As a result, launches are expected to increase significantly. Gurgaon and Delhi should see the majority of the high-end launches. Capital values and rents are likely to rise further with demand picking up, supported by strong supply.

Note: Delhi Residential refers to Gurgaon's prime residential market.