 "Nearly 19,000 flats priced Rs 2-5 cr sold in NCR in 2024, 84% sales growth")
The National Capital Region (NCR) has witnessed a significant shift in the residential real estate market in 2024. Properties priced above Rs 1 crore have contributed to 80% of the total residential sales volume in the region, reflecting an ongoing trend of premiumization in the housing sector, according to the latest report by real estate consultancy firm Knight Frank India. The region also witnessed an on year sales growth of 84% in the Rs 2-5 crore segment, with 18,997 units sold in 2024.
The demand for high-end, spacious homes with modern amenities continues to rise, driven by affluent homebuyers prioritizing quality living spaces in strategic locations.
Notably, the Rs 1-2 crore and Rs 2-5 crore segments emerged as the most active, with major developers offering projects in prime areas of the region. This surge in sales, especially in the premium and luxury segments, is reshaping the dynamics of the NCR housing market, while the affordable housing segment has faced challenges.
Key Insights and Trends
Premium Segment Dominates NCR Market: The high-end property market in NCR, particularly homes priced above Rs 1 crore, has witnessed substantial demand, constituting 80% of the total residential units sold in 2024.
Strong Growth in Rs 1-2 Crore Segment: The Rs 1-2 crore price range saw the highest sales volume in NCR, with 19,111 units sold in 2024. This segment alone accounted for over 33% of all residential sales in the region.
NCR Leads National Sales in High-End Categories: NCR has led the sales volume in the Rs 2-5 crore, Rs 5-10 crore, and Rs 10-20 crore categories, surpassing other major real estate markets in India. The region saw a YoY sales growth of 84% in the Rs 2-5 crore segment, with 18,997 units sold in 2024.
Market Performance by Ticket Size
- Rs 1-2 Crore: With 19,111 units sold, this segment accounted for the highest sales volume in NCR. The 33% contribution of this category to the total residential sales further reinforces the growing preference for larger, more luxurious homes.
-
- Above Rs 50 Crore: While the Rs 20-50 crore segment remained niche with only 6 units sold, the sales in the Rs 50 crore and above segment saw a staggering increase of 717%, with 49 units sold in 2024 compared to just 6 in 2023.
Ticket Size Categories:
<Rs 50 Lakh:
2023: 7487 units
2024: 4223 units
YoY Change: -44%
Rs 50 Lakh - 1 Crore:
2023: 13699 units
2024: 7510 units
YoY Change: -45%
Rs 1 Crore - 2 Crore:
2023: 22720 units
2024: 19111 units
YoY Change: -16%
Rs 2 Crore - 5 Crore:
2023: 10311 units
2024: 18997 units
YoY Change: +84%
Rs 5 Crore - Rs 10 Crore:
2023: 5469 units
2024: 7361 units
YoY Change: +35%
Rs 10 Crore - Rs 20 Crore:
2023: 275 units
2024: 397 units
YoY Change: +44%
Rs 20 Crore - 50 Crore:
2023: 35 units
2024: 6 units
YoY Change: -83%
Above Rs 50 Crore:
2023: 6 units
2024: 49 units
YoY Change: +717%
Affordable Housing Challenges
Decline in <Rs 50 Lakh and Rs 50 Lakh-1 Crore Segments: The more budget-conscious segments, particularly properties priced below Rs 50 lakh, have continued to face challenges. The sales in the <Rs 50 lakh segment dropped by 44% YoY to 4,223 units, while the Rs 50 lakh-1 crore segment saw a 45% decline to 7,510 units in 2024.
The rise in borrowing costs and increasing equated monthly installments (EMIs) have further strained the affordability of these properties, contributing to slower absorption in these price categories.
"Homebuyers’ preference for residential products priced upwards of Rs 10 mn continued to remain strong as spacious homes with high-end amenities are redefining post pandemic living by high-net-worth individuals. Gurugram and key locations of Noida and Greater Noida continue to draw a substantial interest amongst homebuyers in the higher ticket size segment," said Mudassir Zaidi, Executive Director – North, Knight Frank India.
The residential prices in NCR have grown by 6% to Rs 5,066/sq ft/month. NH-24 bypass in Ghaziabad witnessed 6% YoY increment in the price change, followed by Sector 81 in Gurugram and 78 of Noida at 6% YoY price jump. Similarly, other micro markets like Dwarka in Delhi and Raj Nagar Extension in Ghaziabad saw an appreciation of 6% and 5% respectively in residential prices.