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The premium residential real estate market in major cities in India is seeing notable price appreciation, led by Gurugram with a rise of up to 45 per cent followed by Noida, according to Savills India, which is into real estate consulting globally.
While a variety of factors is driving this confidence, the continued price movement serves as evidence of a strong demand base in the real estate sector. Completed projects in most of these cities have witnessed higher appreciation in capital values as compared to under-construction projects. New Gurugram and Dwarka Expressway were the top-performing micro markets with an annual growth of 45 per cent and 21 per cent respectively in average capital values of under-construction properties. Golf Course Road, and GCER, and SPR registered the highest average capital value appreciation for ready-to-move properties with a year-on-year increase of 45 per cent and 39 per cent, respectively. In Noida, average capital values of completed and under-construction properties witnessed a significant 32 per cent and 31 per cent year-on-year increase, respectively. Savills noted this preference could be influenced by factors such as reduced uncertainty, immediate availability for use, and the ability to assess the actual quality and features of the property. "As the residential market gains momentum and capital values experience a surge in recent months, buyers are motivated to make purchasing decisions, anticipating a continued strengthening of property prices, Savills said. Further, it noted that the upbeat sentiment is further supported by the recent decision of the Reserve Bank of India's Monetary Policy Committee, which maintained interest rates unchanged for a fifth consecutive time. RBI's status quo move is anticipated to provide a significant boost to consumption in the residential segment, encouraging increased investment and activity in the residential market. Any hike in repo rate is a negative for the interest-rate-sensitive real estate sector. Arvind Nandan, Managing Director, of Research and Consulting, Savills India said, "As we step into 2024, the outlook for the premium to luxury residential segment in key urban hubs like NCR and Mumbai remains exceptionally promising. The doubling of new launches in Gurugram and Noida reflects a growing appetite for luxury residences. This surge not only underscores the resilience of the market but also signifies a growing demand for upscale living experiences." (ANI)
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