Despite the pandemic, luxury housing (priced >INR 1.5 Cr) in Delhi-NCR performed reasonably well in 2020. Of the total housing sales of ~23,220 units that NCR saw last year, luxury housing comprised over 4% share – increasing marginally over 2019, when it was 3% (of 46,910 units). Noida witnessed total housing sales of ~3,240 units in 2020 of which luxury comprised a 9% share. Gurgaon sold a total of ~7,240 units of which luxury homes comprised a 5% share.

While there was a marginal rise in overall sales, a new supply of luxury homes dropped to 9% of the total 18,540 units in 2020 (from 12% or 35,280 units in 2019. Noida, Gurgaon, and Ghaziabad were the only cities in NCR that saw new luxury supply in 2020.

“Affordable and mid-segment housing continued to drive homebuyer demand in 2020, but luxury sales also saw some momentum in NCR despite the pandemic,” says Anuj Puri, Chairman – ANAROCK Property Consultants. “This is also because the impact of the pandemic on this buyer-class was not as significant as other budget categories. The discounts doled out by developers further made such properties more lucrative especially for the ‘real’ buyers who are prioritizing their home bases and willing to spend accordingly. Moreover, we are also seeing good traction from the NRIs amidst good deals and discounts and favorable rupee vs dollar value.”

Demand-Supply Dynamics

As per ANAROCK research, NCR in 2020 saw total housing sales of more than 23,220 units of which nearly 4% was in the luxury segment priced >INR 1.5 crore onwards. Back in 2019, NCR saw total housing sales of 46,910 units of which luxury units comprised just 3% overall share.

• Gurgaon saw maximum housing sales of approx. 7,240 units in the entire 2020 of which luxury sales comprised 5% share. In 2019, of the total 13,240 units sold, luxury sales comprised a 4% share.
• Greater Noida saw housing sales of approx. 6,950 units in 2020 of which luxury segment consisted of 2% share. In 2019, total sales here were 15,150 units of which luxury share was just 3%.
• Noida witnessed housing sales of approx. 3,240 units in 2020 of which luxury comprised 9% share. Back in 2019, the region saw sales of 6,620 units of which luxury sales had the same 9% share.
• Ghaziabad saw housing sales of 3,780 units in 2020 of which luxury share was just 1% while in 2019 the city saw total sales of 7,860 units of which there were no luxury sales reported.
• Faridabad too saw limited sales in the luxury segment. Of the total sales of 970 units in 2020 luxury comprised just 1% share while in 2019 of the total 1,630 units sold luxury had just 1% share.

From the supply perspective, NCR saw new launches of approx. 18,540 units in 2020 of which just 9% was within the luxury segment priced >INR 1.5 Cr. While in 2019, as many as 35,280 units were launched of which luxury comprised 12% share.

• Gurgaon saw maximum housing launches of approx. 11,180 units in the entire 2020 of which luxury segment comprised 10% share. In 2019, of the total 19,350 units launched luxury comprised 14% share.
• Greater Noida saw housing launches of approx. 1,820 units in 2020 of which the luxury segment saw no new launches. In 2019, total launches here were 4,090 units of which luxury share was a whopping 16%.
• Noida witnessed housing launches of approx. <1000 units in 2020 of which luxury comprised whopping 28% share while back in 2019 the region saw the supply of 2,950 units of which luxury had 18% share.
• Ghaziabad saw a housing supply of <500 units in 2020 of which more than halfway in the luxury segment while in 2019 the city saw a total supply of 2,430 units of which there was no new supply in the luxury category.
• Faridabad saw no new launches in the luxury segment in both 2019 and 2020. The total launches in 2020 were 3,050 units while in 2019 it was 2,860 units.

About the author- Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants