Rising property prices in Gurugram driven by Diwali demand

According to experts, the demand for residential real estate, especially in the Delhi NCR market, is growing steadily and Gurugram stands out as a major hotspot.

Experts said that the main interest in the region is from places like Dwarka Expressway, Southern Peripheral Road (SPR), New Gurugram, Golf Course Road, Golf Course Extension Road and Sohna Road due to improved infrastructure and better connectivity in these areas . offer. Ongoing subway, high-speed rail and road expansion projects have made these areas popular destinations for homebuyers, according to developers and consultants.

The data highlights the robust performance of the real estate sector over the past few months.

According to an Anarock report dated October 25, average residential property prices in Delhi NCR rose 29% year-on-year in the July-September quarter, driven by strong demand, higher input costs and expanding supply of luxury homes. This price increase points to a thriving real estate market, especially in Gurugram, where luxury real estate is increasingly attracting younger buyers, including millennials, who now account for nearly 45% of luxury home buyers in the region.

The Anarock report further states that Gurugram continued to dominate sales in NCR, accounting for more than half (51%) of the sales volume share in Q3 2024. They are followed by Greater Noida and Ghaziabad, which account for 20% and 13% of the region’s sales. , respectively. He added that Gurugram remains the main hub for available inventory, accounting for over 40% of NCR’s total inventory.

Meanwhile, a report published by CBRE titled ‘Market Monitor-Investments’ said that between January 2024 and September 2024, Delhi-NCR led the land deals with a share of approximately 32%, with Gurugram accounted for the highest share of land transactions – 65%. % and Noida/Greater Noida – 20%.

“This represents a 65% increase in the number of transactions compared to the same period last year,” it said.

Experts say that this increase in activity in transactions with land of different classes reflects stable investor sentiment.

“The increase in land transaction activity across asset classes reflects… the evolving dynamics of the Indian real estate market. As we are witnessing strong growth in both established segments, including residential, office and emerging categories like data centers, this indicates that investors are increasingly confident in the long-term potential of the Indian real estate sector,” Anshuman Magazine, Chairman, said and Chief Executive Officer (India, India). Southeast Asia, Middle East and Africa), CBRE.

City developers and real estate consultants agreed and said that apart from end users, many investors, including NRIs, have regained confidence in the Gurugram market.

“As the festive season approaches, excitement is building in the Gurugram real estate market. This time of year often sees a surge in shopping activity, fueled by optimism and the tradition of new beginnings. Over the years, infrastructure developments such as Dwarka Expressway, DMIC and Metro expansion have paved the way for Gurugram’s growth, laying the foundation for even greater momentum in the coming months… This festive month is set to revive the market by introducing new opportunities and meaningful investments for those who are ready to take the plunge,” said Madhur Gupta, CEO, Hero Realty.

They also said that the festival season triggers the latent demand of previous months, which increases sales during Diwali and the rest of the year.

To encourage this, many developers have been offering lucrative discounts, price breaks, freebies and special packages in the months leading up to the festive season to further stimulate demand.

“This Diwali season, our first BOAT Fest brought a unique combination of exclusive real estate options and an unrivaled awards festival… At the Best of All-Time real estate festival, we presented offers… from 15% off, free club membership and parking, a pair of Rado watches and an exciting raffle in which three lucky winners drove away in luxury BMW cars. This festive season has truly set a new standard for joy, connection and opportunity,” said Pradeep Aggarwal, Founder and Chairman, Signature Global.

New class of buyers

Developers also said that a large number of buyers in the city are relatively young and are more attentive to properties that provide a safe, green and comfortable lifestyle that suits their needs.

“Millennials are driving a new wave of demand in Gurgaon’s luxury housing market by purchasing luxury properties much earlier than previous generations. This shift is being driven by factors such as rising disposable incomes, increasing access to flexible finance and a preference for modern, comfortable living spaces that offer both lifestyle and investment value… Latest data shows that almost 45% of luxury home buyers in the region are now below 40 years of age, reflecting their desire for early financial security and improved standard of living,” said Pankaj Pal, Managing Director, Whiteland Corporation.

Others said the festive season always attracts shoppers as it is associated with wealth and auspiciousness.

“Festivals in India have deep cultural significance, making this a favorable time for real estate investment. Given the growing investor interest, pegging investments during this period can bring both personal and financial benefits,” said Ashish Sharma, AVP (Operations) at Brahma Group.

While most developers are optimistic about the development of the real estate market in the city, there are also market observers and experts who see lower sales primarily due to housing prices becoming too high, affordability for most buyers suffering. and property markets that peaked last year are unlikely to reach previous year highs again within a year.

Vinod Behl, an expert on urban real estate, when asked about the prospects of the housing market in the near future, said that while developers are optimistic about the festive season fueling the market, there are apprehensions among the cheers. “There was a slight decline in home sales in the third quarter as the RBI did not cut mortgage rates while prices rose significantly. Investors are slowing down the transfer of their funds into equity and mutual funds, which will impact real estate in the long run. Over-reliance on luxury housing while the affordable and mid-market segments are constantly shrinking is not a good sign in the long term,” he said.