Despite hike in prices, sale of residential properties rises in Delhi NCR

Delhi NCR registered brisk sales of residential property in the calendar year 2022, registering a 19% jump over the previous year.

According to the real estate consultancy PropEquity, the total sales of residential real estate in Delhi NCR stood at 32,789 units in 2022 as compared to 27,553 units in the previous year. The cities considered in the Delhi NCR were, New Delhi, Gurugram, Faridabad, Noida, Greater Noida, and Ghaziabad. Whereas, the segment wise categories were; Affordable- Less than 75 lacs, Mid- 75 lacs to 1.5 crores, Luxury- More than 1.5 crores

Delhi NCR’s weighted average price of the homes sold in 2022 has jumped by a whopping 33% at Rs 9,512 per square feet as compared to last year. The average price of new launches in 2022 has shot up by 64% at Rs 10,958 per square feet as compared to the previous year. Even though the real estate companies are launching new projects at significantly higher prices, there is sizable demand and healthy absorption of these projects. About 48% of all sales of residential property in 2022 were accounted for by luxury segment homes.

In terms of new launches, Delhi NCR witnessed negative growth of 28% in 2022 at 15,699 units as compared to the preceding year. The inventory overhand stood at 15 months at the end of 2022 based on the current rates of sales of properties. The inventory overhang has dropped since the total sales are almost two times the new launches. There will be new launches in the coming year as a result of this increase in demand.

The luxury segment had the largest share of homes in both new launches and sales. Most of the home buyers preferred the luxury segment of housing. The share of the affordable segment (ticket price less than 75 lacs) of houses stood at 17% and that of the luxury segment was 70% among the new launches. As far as sales are concerned, the share of the affordable category of homes stood at 39% and that of the luxury segment was 48%.

“Delhi NCR is one of the most dynamic residential real estate markets in the country and the dynamism played out to the brim in 2022 with the sales and weighted average price of the homes going up significantly. There seemed exuberance in the property market all throughout in 2022 and the momentum seems to be continuing in 2023 as well. There are new developers entering the fray in the Delhi NCR market who are expected to bring their own prowess and finesse which bodes well for the property buyers’ interests, while the existing players continue to launch new projects.” said Mr. Samir Jasuja, Founder and Managing Director at PropEquity.