Gurugram Basks Amid Rising Sales of Luxury Housing in India With Over 20 Year-on-Year Increase in Rental Yield
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Gurugram, also regarded as the Millennium City, has evolved into NCR’s real estate powerhouse with remarkable projects across all verticals, including residential, commercial, mixed-use, and particularly in the luxury segment. According to recent research conducted by R&R, new launches of luxury units in Gurugram skyrocketed more than twice during the year 2023. Notably, the micro markets of GCER (Golf Course Extension Road) & SPR (Southern Peripheral Road), along with New Gurugram, collectively contributed to 90% of these launches.
Sales of luxury homes, priced Rs 50 crore and above, rose 51 per cent in value terms to Rs 4,319 crore during the last calendar year on strong demand, according to JLL India. Real estate consultant JLL India data showed that at least 45 homes, priced Rs 50 crore and above, were sold in 2023 for Rs 4,319 crore.
Mumbai witnessed most transactions, primarily in the Malabar Hill and Worli micro markets. Golf Links and Vasant Vihar were the top performing submarkets in terms of luxury residential sales in Delhi NCR. Gurugram also saw a couple of luxury apartment transactions.
Sachin Gawri, Founder and CEO, Rise Infraventures, shares, “The growth trajectory of luxury residential properties in Gurugram has been remarkable. Factors such as the rise in disposable income among the upper middle class, the inflow of high-net-worth individuals due to the rise in start-ups, and substantial improvements in physical infrastructure have all fueled the increasing prices of luxury homes in Gurugram. This surge in capital values is a testament to the region’s attractiveness as a real estate investment destination among both buyers and developers.”
“With the remarkable performance in 2023 and promising economic prospects on the horizon, we anticipate continued growth in 2024. The rental yields in Gurugram have also showcased a 28% YOY increase, strengthening the region’s appeal as a feasible zone for investment. The availability of efficient projects developed at prominent locations laced with connectivity are other factors that add to the region’s allure. The inauguration and announcement of significant infrastructures in the vicinity have also been adding to the inflow of prospective buyers and investors to the region,” expresses Gurpal Singh Chawla, MD, TREVOC Group.
Nayan Raheja of Raheja Developers, predicts, “Enhanced connectivity will not only attract more buyers but also drive up capital and rental values in Gurugram’s micro markets. The city’s micro markets have been witnessing significant improvements, fostering demand for luxury residences among high-net-worth individuals.”
Remarkable developers and an inflow of enormous investors and prospective buyers have been instrumental in reshaping the city’s real estate advancements amidst this surge. The year 2023 witnessed a remarkable appreciation in capital values for both completed and under-construction properties, with an average of 35% and 25% year-on-year increases, respectively.
India Sotheby’s International Realty CEO Ashwin Chadha said, “The demand for such residential real estate has been registering significant growth since 2021 and it continues its momentum into 2024.” Along with this, all micro markets within Gurugram have experienced significant improvements in social and physical infrastructure, further increasing the demand for projects among prospective buyers.
Reflecting on this trend, Ankush Kaul, Chief Business Officer of Ambience Group, remarks, “Gurugram’s real estate market offers immense potential, especially in the luxury segment. Our latest projects in the region have also received an overwhelming response from buyers, signifying the strong demand for premium living spaces. With promising economic prospects ahead, we anticipate continued growth in 2024 with several infrastructural developments inviting more investors with ease of accessibility.”
The luxury residential market in Delhi-NCR as a whole has seen steady growth over the past few years. Moreover, with the completion of key infrastructure projects such as the Dwarka Expressway and Jewar International Airport in Noida, connectivity to micro markets in Gurugram is set to improve further. Gurugram has emerged as the most sought-after real estate hotspot for luxury investments. As the city continues to evolve and infrastructure projects are near completion, the prospects for investors and developers remain bright, promising a future of continued growth and prosperity in the region.
