The premium residential market in the major cities saw a notable price appreciation in the range of 3 to 18 percent on average across Mumbai, Bengaluru and Delhi-NCR in H1 of 2023 as compared to the year-ago period, according to a report by Savills India, a global property consulting firm.
While Delhi saw an increase of five percent in rentals year on year (YoY), Gurugram witnessed a rise of 28 percent, Noida and Mumbai 18 percent and Bengaluru four percent, the report said.
New launches of luxury units in Gurugram also increased more than 3X in H1 2023 to 4,910 units. With 2,200 units launched in H1 2023 in the premium segment, Bengaluru saw a 30.3 percent YoY decline, the report noted.
Under-construction projects in these cities have witnessed higher appreciation in capital values as compared to completed projects. This reflects buyers’ preference for new launches with better amenities and spacious units. Additionally, with the residential market picking pace and capital values accelerating in recent months, buyers are prompted to make buying decisions as they anticipate further strengthening of prices.
Mumbai
Mumbai witnessed an average 8 percent YoY rise in capital values for completed as well as under-construction properties. The micro-markets of central Mumbai, Navi Mumbai and Thane witnessed a significant increase of 10 percent to 22 percent YoY in capital values on account of newer completions commanding higher prices because of better specifications than the existing buildings in the market.
Buyers are preferring larger homes and are also looking to upgrade from existing smaller apartments, hence the demand for large apartments and penthouses in South Mumbai and Central Mumbai has increased, the analysis said.
As far as rentals are concerned, during H1 2023, Mumbai witnessed an increase of 18 percent YoY in average rental values as demand for leasing larger homes increased due to a rise in hybrid work culture, it noted.
Bengaluru
The capital values of both completed and under-construction premium housing projects in Bengaluru increased in the range of 3-4.5 percent YoY in different micro markets. South Bengaluru saw a similar 4-5 percent increase in the prices of under-constructed and newly completed projects in H1 2023. Meanwhile, under-construction projects in North Bengaluru registered the highest 7-8 percent YoY rise in premium housing prices in H1 2023. South and North Bengaluru saw a significant growth of 4 percent YoY in rentals in premium residential developments.
Delhi
Delhi witnessed an average increase of 11 percent in the capital value of luxury floors. South-East Delhi stood out with the highest price appreciation of 15 percent on an annual basis, followed by the South-West and Central 2 micro-markets, which registered a YoY growth of 14 percent and 13 percent respectively. The capital values of residential plots plateaued in H1 2023 for most micro-markets, except South-East Delhi, which witnessed a YoY growth of 10 percent, the report said.
The rental values in Delhi increased by 5 percent YOY in H1 2023, the report noted.
The capital values for completed and under-construction properties in Gurugram have significantly escalated in the range of 11 percent to 40 percent YoY across all micro-markets. Both categories – under-construction as well as completed properties – saw a notable increase in capital values at 27 percent YoY and 23 percent, respectively. New Gurugram with a YoY increase of 40 percent witnessed the highest rise in capital values of under-construction properties during H1 2023. Golf Course Extension Road and Southern Peripheral Road registered the highest capital value appreciation for ready-to-move properties with an increase of 35 percent.
Noida’s Sector 150 micro-market witnessed a 28 percent YoY growth, the highest in capital values for under-construction proprieties. As far as rentals are concerned, NOIDA and micro-markets saw a 19 percent YoY jump in H1 2023.
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