Riding high on rapid economic development and robust infrastructure upgrade amidst supportive real estate and infrastructure policies of the central government, Delhi-NCR has emerged as the Numero Uno real estate market with massive growth in residential and commercial real estate, attracting large scale domestic and global investments.
Today, whether you are looking for a home or want a long-term investment in commercial real estate for capital appreciation and rental gains, Delhi-NCR is the most lucrative option, with Gurgaon, Noida and Greater Noida as the prime markets. This is clearly evident from capital and rental values rising 54% and 40% respectively in Gurgaon and 126% and 56% in Noida between 2021 and H1 2024.
NCR’s commercial real estate scenario is quite vibrant. It saw a 12% YoY growth in gross leasing with 5.7 msf of space leased. Gurgaon led demand for office space in Delhi-NCR , securing 61 percent of the market share.
That Delhi – NCR has come up as a hot real estate destination , is evident from the industry statistics pointing to cumulative investments amounting to 44% of the total quarterly investments received by Delhi-NCR in Q3 2024in the residential segment. Multi-city investments predominantly directed towards office and residential classes corresponded to 30% of the overall inflows during Q3, 2024.
Gurgaon Market
Gurgaon has been the prime driver of real estate in Delhi-NCR with Dwarka Expressway, Sohna Road , Golf Course Extension Road emerging as the hottest corridors. In fact Dwarka Expressway and Sohna Road are the most sought-after areas due to their strategic location, offering direct access to IGIA, Delhi-Mumbai Expressway and NH48 and their proximity to key commercial hubs including Golf Course Extension Road and Cyber Hub
Gurgaon’s residential market is the premier real estate market with world-class developments , creating high benchmarks in luxury and sustainability. The high growth and rising demand has attracted top listed developers from South India and West India including Godrej, Tata Realty , Mahindra Lifespaces, Prestige Estates Sobha, spreading their wings here , carving out a major market share.
Amidst rising demand, average residential prices in Gurgaon touched INR 14650 psf , a 76% increase from two years ago. On Sohna Road, average residential capital rates during Q2 2024 touched INR 10500 , registering 50 percent growth. Average property rates in July- September 2024 quarter reached INR 14650 psf. The continuous infra development and new premium projects along Sohna road , will continue to boost it as the most sought after property corridor.
Dwarka Expressway is touted as the prime investment zone in NCR’s fast evolving real estate market. This high potential corridor has seen over 79% price appreciation in the last 5 years. Property prices along the Dwarka Expressway, according to Anarock, rose from Rs 5359 psf to more than INR 9600 psf in H1 2024. The significantly high demand for high end residential and commercial spaces is driving up prices here, offering a great opportunity for both investors and end-users.
The rapid development activity on Dwarka Expressway and Sohna Road point to Gurgaon’s great potential as a prime real estate destination.
With growing demand for grade A green office spaces and popularity of mixed use developments, Gurgaon has a dynamic commercial landscape , offering great investment opportunities in commercial real estate As a preferred location for IT & Tech companies, Gurgaon has become a vibrant market , with Udyog Vihar, Golf Course Extension Road and Sohna Road , witnessing substantial growth as commercial hubs. The rising trend of SCOs and co-working spaces is substantially contributing to the growth of commercial real estate. Dwarka Expressway is attracting good investment in office spaces and retail.
The high growth potential in commercial real estate, has seen property rates rising by 12% QoQ in July-September 2024 quarter on MG Road and NH48, touching the rate of INR 18701 psf and INR 12389 respectively . Golf Course Road and Golf Course Extension Road registered 8% and 2% rise with rates touching INR 18602 psf and INR 13331 psf ,
Noida & Greater Noida Market
Thanks to rapid upgradation of infrastructure providing connectivity push, Noida and Greater Noida have seen high quality modern residential and commercial developments , bolstering real estate and providing immense opportunities for investments. Particularly, Jewar Airport, set to become operational by the year end , has totally transformed this market. Noida and Greater Noida’s seamless connectivity with Delhi through Noida- Greater Noida Expressway,and its excellent connectivity to various parts of Delhi through road and metro network and easy accessibility within and outside NCR , is driving up realty growth.
Residential market particularly in Greater Noida is seeing a boom with a range of options for high quality, well-planned housing with modern amenities . Yamuna Expressway has emerged as a premier investment destination with property prices registering 170% increase over the last 5 years and land prices surging by 450%.The average apartment cost has risen from INR 2800-3000 psf in 2019 to INR 7900-8100 psf while land prices average between INR 6900-7100 psf. According to industry statistics in September 2024, residential prices in Noida ranged from INR 16000-20000 psf and INR 7000-10000 psf in Greater Noida. The average cost of a highrise apartment is INR 2.2 cr.
Due to massive infrastructural development , supportive government policies and favourable business environment, Noida and Greater Noida have seen unprecedented growth in industrial real estate, opening up new opportunities for warehousing and manufacturing. With a conducive environment for businesses, there is a great demand for commercial office spaces and corporate developers like MAX Estates, are out to leverage this potential. Today, commercial properties here are priced at above INR 7500 psf.
Price Trends
The growing demand for residential and commercial spaces is driving property prices in Delhi-NCR. According to Credai-Liases Foras report, Delhi-NCR prices jumped by 69% in Q2 2024 , registering 30% YoY growth-highest among 8 top cities. While average housing prices jumped 69 percent in Dwarka Expressway , prices soared 45% YoY in Greater Noida. Both these markets saw marquee projects by leading developers in luxury and ultra luxury segments, driving sales. The growing interest in under-construction homes is also driving prices. While Gurgaon saw 17.3% QoQ growth , Noida registered 14.5% QoQ growth in Q2 2024.
Going forward, the prices will see a continued upward trend , with an estimated 10-15% increase in 2024. Escalating building material costs and steady increase in demand will be key price drivers .
