Days after a 11,000 square foot apartment at The Camellias by DLF on Gurgaon's Golf Course Road was sold for more than Rs 100 crore in a resale, the transaction is being compared with deals in New Delhi’s posh localities, which are among the priciest properties in the country.
Experts said even though the price was at par with that of bungalows in the national capital’s upmarket areas and comparable to several premium sea-facing properties in Mumbai, the deal was not reflective of the entire Gurgaon micro-market but only of one project facing the golf course. Similar units by other developers in the same location may command only one-third of this price.
However, the deal does narrow the gap between prices in older established micro-markets of the National Capital Region, known for their prime locations, with those of the relatively new Gurgaon market, they said.
These uber luxury apartments (The Camellias) in Gurgaon were sold by the developer as bare-shell units back in 2014 at a rate of Rs 22,500 per sq. ft. The price of the recent deal, said sources, is almost Rs 114 crore. The unit was bought for about Rs 45 crore a few years ago, they said, adding that the primary owner sold it after spending a substantial amount on doing up the interiors, they said.
Demand-supply mismatch
“Appreciation of the golf course-facing unit, location, an unmatched product by a builder of repute, and the fact that the new owner gets a ready apartment and will not have to spend time and effort in doing up the condominium’s interiors are what helped the seller command a premium,” said Ritish Mehta, a senior director at Jones Lang LaSalle. “This is also a case of a luxury product by a particular developer that is driving demand. It is all about demand-supply mismatch – very few units of this kind are available in the Gurgaon market.”
Most buyers of luxury homes prefer bare-shell apartments. Almost 30 percent of the cost of the unit is generally spent on interiors. An estimated 95 percent of Mumbai’s uber luxury market is a bare-shell market, whereas in Delhi, 95 percent has all along been a builder-finished market.
“With more uber luxury projects getting launched in the NCR market, this ratio may also change, with more buyers willing to go in for bare-shell units and do them up to suit their lifestyles,” Mehta added.
Amit Goyal, managing director of India Sotheby's International Realty, said the latest high-value transaction in Gurgaon is a clear indicator that luxury homes are not just about brick and mortar, but about the amenities ecosystem.
“Demand is driven by the communities created in and around, the security and the amenities on offer. People are willing to pay a premium for the right neighbourhood, with all the desirable facilities,” Goyal said, acknowledging that in this case, the developer had created unmatched views, amenities and services.
A high pricing benchmark also lifts the entire market, especially as supply is limited at the top end and demand is robust. It is also a reflection of the overall economy doing well, he added.
Most homeowners who bought apartments in The Camellias would have paid between Rs 18 crore at the launch in 2014 and more than Rs 40 crore in more recent times for bare-shell units. Getting the interiors done would have cost them upwards of Rs 5 crore.
Brokers said properties near The Camellias in Gurgaon that do not face the golf course are priced upwards of Rs 15 crore.
Although fully done 11,000 sq. ft apartments are few and far between, the fact that the price is at par with that of a bungalow in a posh Delhi area is not representative of the market – only of this project and developer in particular. It also suggests that the overall market sentiment is strong, said Mudassir Zaidi, executive director, north, at Knight Frank India.
South Delhi, Lutyens zone
Real estate brokers said the price difference between Gurgaon and Delhi is narrowing. Back in 2003, a plot in Delhi traded at about Rs 1 lakh per sq. yard compared with Rs 10,000-15,000 per sq. yard in Gurgaon. Now, some properties in Delhi trade at Rs 5 lakh per sq. yard compared with Rs 3 lakh per sq. yard in Gurgaon.
Yet, even though an apartment can be purchased for Rs 100 crore in Gurgaon, in Delhi, a buyer would also get to own the land on which there is the flexibility to construct a basement and four floors, they said.
A few buyers of apartments on Gurgaon's Golf Course Road are from either south Delhi or central Delhi, besides other parts of India. Many families sell their ancestral properties and buy into luxury condos in Gurgaon for the lifestyle offered.
“It’s similar to someone preferring a hatchback and someone who prefers an SUV... It’s to do with customers’ preferences and requirements,'' explained Rohit Chopra of Southdelhiprime.com.
The poshest areas in Delhi include Sundar Nagar, Kautilya Marg, Malcha Marg, Golf Links and the Lutyens Bungalow Zone (LBZ). The LBZ is located in the heart of the national capital and is home to top politicians and wealthy entrepreneurs.
Construction in the LBZ is highly regulated because it is a designated heritage zone. There are strict height, floor-area-ratio and reconstruction norms. The area may be a prime address but it does not provide the luxury of space, although some bungalows have a carpet area of more than 10,000 sq. ft. Areas in this zone include parts of central Delhi such as Prithviraj Road and some parts of Sundar Nagar, Golf Links, and Bengali Market.
According to Chopra, a buyer may choose to live near the Lutyens zone, especially if the space requirement is large. These could be in areas such as West End or Malcha Marg, where, on an 800 sq. yard plot, an owner can build up to 24,000 sq. ft of space spread across a basement and four floors. Similarly, on a 1,200 sq. yard plot, up to 30,000 sq. ft, of space can be constructed.
Bungalows in West End, Malcha Marg and Panchsheel Park can cost anything from Rs 80 crore and beyond, added Chopra.
Deals so far
Vasudha Rohatgi, wife of former attorney general of India Mukul Rohatgi, bought a 2,100 sq. yard bungalow in Delhi’s Golf Links for Rs 160 crore.
Rategain founder Bhanu Chopra bought an 850 sq. metre bungalow in Delhi’s Golf Links for Rs 127.5 crore.
Aakash Chaudhry, co-founder of Byju’s-owned Aakash Educational Services, bought a bungalow in Kautilya Marg, Diplomatic Enclave, for Rs 137 crore.
In 2021, JC Chaudhry, founder of tutorial chain Aakash Educational Services, bought a 2,000 sq. yard property in south Delhi’s Vasant Vihar for over Rs 100 crore and later purchased a 5-acre farmhouse in south Bijwasan for about Rs 96 crore.
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