India's real estate market is experiencing unprecedented growth, with sales reaching nearly Rs 35,000 crore during the September quarter, as stated by 26 of the country’s major listed companies. This remarkable surge has been predominantly driven by the residential property segment.
Leading the charge is Godrej Properties, which reported sales bookings amounting to Rs 5,198 crore, marking it as one of the top performers during this period. The momentum was also backed by Mumbai-based Macrotech Developers and the Delhi-NCR operation of Max Estates, which recorded impressive sales figures of Rs 4,290 crore and Rs 4,100 crore, respectively. Conversely, DLF Ltd faced challenges, experiencing a steep decline in bookings to Rs 692 crore. This drop was largely attributed to the absence of new project launches during this quarter.
According to analysts, the recovery post-COVID-19 has reignited homeownership demand and led to increased housing prices. Homebuyers are now gravitating more toward well-established brands, as they seek reliable investments following previous regulatory controversies with firms like Unitech and Jaypee InfraTech.
The National Capital Region (NCR) has also seen remarkable developments, with housing prices soaring around 137% from 2019 to September 2024, fueled by renewed investor confidence and extensive infrastructure initiatives. Areas including Noida, Gurugram, Ghaziabad, and Greater Noida saw their housing prices more than double. Noida led this increase with the highest rise of 152%, from Rs 5,910 per square foot to Rs 14,946 per square foot. Ghaziabad followed closely with a 139% hike, and Gurugram observed a 135% increase.
Samir Jasuja, Founder and CEO of PropEquity, emphasized the transformative effect of infrastructure projects such as the Noida International Airport and the Delhi-Meerut Expressway on the region's real estate market. He pointed out how these developments have created significant momentum for real estate sectors across NCR.
While demand for housing remains stout, the region also faces challenges with stalled projects. Greater Noida currently grapples with 167 stalled developments, resulting in 74,645 unfinished units. Noida has 103 halted projects affecting 41,438 units, and Ghaziabad has 50 stalled with 15,278 units. Gurugram also has 158 stalled projects, which encompass about 52,509 units. These figures highlight the pressing need for effective government policies to expedite completion.
Despite the challenges posed by stalled projects, the revival of homebuyer sentiment is palpable. Effective government initiatives and the rise of reputable developers have restored confidence among investors, homebuyers, and corporations alike. Jasuja anticipates the NCR will continue to outperform other tier-1 cities, drawing substantial investment and developments from established players.
Notably, even though absorption rates have seen drops—Noida's absorbed units declined by 55%, and Ghaziabad's fell by 31%—Gurugram stands out with its remarkable 157% increase. This anomaly can be attributed to the area's strong commercial and luxurious housing appeal.
Aman Gupta, Director of RPS Group, expressed optimism about the future, stating, "The 137% increase observed since 2019 is indicative of the underlying strength and investor confidence present within the NCR. The region's surge could create new growth corridors fueled by major infrastructure developments, particularly noted with Noida’s growth of up to 152%." He underscored the resilience of demand across various market segments, even amid rising construction costs.
Vishal Raheja, Founder & MD of InvestoXpert.com, echoed these sentiments, recognizing the interplay of numerous elevatory factors: significant infrastructure projects, the enduring preference for homeownership post-pandemic, and rising land and construction costs. Raheja described Noida's surge as emblematic of its transformation to an investment hotspot, driven largely by connectivity enhancements and reputable development projects.
“The case of NCR’s real estate is emblematic, showcasing how infrastructure and supportive policy frameworks can catalyze long-term value creation,” stated Sunil Sisodiya, Founder of Geetanjali Homestate. He added, "Locations like Gurugram and Ghaziabad are benefiting immensely from proximity to large-scale projects, including rail and metro expansions. The continuous rise reflects the enduring appeal of these cities as investment magnets, especially as construction costs increase alongside housing demand. The NCR is now firmly positioned to attract more investments from both end-users and investors over the coming years."
The key takeaway from this economic upturn? Confidence is rising, investments are flowing, and India's real estate market, particularly within the NCR, is poised for even more growth, leveraging infrastructure and regulatory support to advance its position within both national and international real estate arenas.
