Gurugram Premium Housing Market Prices Surge 53%, Followed By Noida

The premium residential market in major cities is experiencing significant price appreciation, with Gurugram leading the way at 53%, followed by Noida, according to a report by Savills India released on Monday.

North Goa, a popular second home location, saw a 28% rise in villa prices over the year, driven by the increase in remote working and high rental yields.

Under-construction projects in the top three cities have seen price appreciation of up to 30% over the year, surpassing ready properties due to the appeal of new amenities and configurations offered in new launches. This trend indicates strong demand in the premium housing market.

The demand is bolstered by the Reserve Bank of India's decision to maintain interest rates for the sixth consecutive time, which is expected to further stimulate the residential market.

Key trends observed include notable price increases in premium locations and heightened demand for new, amenity-rich projects.

In Mumbai, the capital value for under-construction properties saw a sharper rise as compared to ready properties, increasing by 5% year-on-year versus 3% year-on-year for completed properties. Micromarkets like Central Mumbai and Western suburbs experienced notable increases of 12% to 21% year-on-year in capital value, driven by new launches at prices above the existing market average.

There was heightened demand in the luxury segment, particularly for larger spaces in bungalows and prime residences, fueled by the trend of hybrid working, especially among professionals in the finance and legal sectors.

Bengaluru's premium residential market witnessed a moderate growth in capital value, with under-construction projects averaging a 7.2% year-on-year increase, outpacing the 5.2% year-on-year rise in newly completed projects. Central Bengaluru led the growth in completed projects at 7.5% year-on-year, followed by East Bengaluru at 6.2%, bolstered by the completion of new metro routes and strong demand from high-net-worth individuals.

Delhi observed a robust increase of 16% year-on-year in the average capital value of luxury floors, with South-East Delhi leading at 27% year-on-year growth, followed by South-West Delhi at 21% year-on-year. Residential plots in the city saw a substantial 25% year-on-year growth, driven prominently by South-Central and South-West Delhi with 29% year-on-year increases.

Gurugram recorded significant growth across both completed and under-construction properties, with average capital value rising by 37% year-on-year and 30% year-on-year, respectively, at the city level.

New Gurugram and Dwarka Expressway emerged as top performers, experiencing annual growth rates of 53% and 34%, respectively, in under-construction properties. Residential plots in Gurugram saw a 26% year-on-year increase in average capital value, with Dwarka Expressway leading with 43% year-on-year growth.

Noida saw substantial year-on-year increases of 30% and 29% in average capital values for completed and under-construction properties, respectively, with Sector 150 witnessing the highest growth of 43% year-on-year in under-construction properties.

In North Goa, average capital value for villas surged by 28% year-on-year, driven by rising popularity as a second-home destination with high rental yields and increasing demand for gated villas. Coastal locations such as Anjuna, Arpora, and Calangute were particularly favoured, with a shift towards smaller villa sizes due to rising land costs.

The market reflects a trend of young professionals from major cities relocating to Goa for better work-life balance, particularly in creative fields and with digital nomadism.

In Mumbai, all micromarkets experienced year-on-year increases in rental values, ranging from 3% to 8%. This growth was partly driven by pent-up demand for rental properties following the redevelopment of dilapidated buildings. The market saw heightened activity as tenants increasingly favoured larger homes with amenities, especially those near metro stations offering convenient access to business hubs and entertainment areas.

Bengaluru's South and North regions reported significant year-on-year rental growth of approximately 3% in premium residential developments, while East and Central Bengaluru saw around 2% year-on-year increases.

Delhi saw a substantial 31% year-on-year rise in rental value citywide in the first half of 2024. The South-Central micromarket led with a 38% year-on-year increase, followed closely by Central 1 with a 36% year-on-year rise.

Gurugram's average rentals increased by 18% year-on-year across the city, with Dwarka Expressway and Golf Course Road witnessing the highest growth rates at 28% and 19% year-on-year, respectively.

In Noida, Sector 150 and other micromarkets saw significant year-on-year rental hikes of 12% in the first half of 2024.

Luxury unit launches in Delhi increased over four times, with 1,300 new units launched in the first half of 2024. With approximately 9,500 luxury units, new launches in Gurugram increased two times in the first half of 2024. New launches of luxury units in Noida saw a significant increase, with approximately 2,200 units added in H1 2024.

With 5,632 units launched in H1 2024 in the premium segment, Bengaluru saw 156% YoY growth. East Bengaluru accounted for 55% of the new launches, while North Bengaluru contributed 23%.