The pandemic has prompted the potential buyers and undecided individuals to recognize the importance of owning a home, increasing the demand for housing units in Delhi.
Delhi has surpassed Mumbai in terms of the total number of houses sold over the last four years. In 2022, Delhi witnessed sales of 1.34 lakh units, compared to 74,943 houses sold in Mumbai, representing a significant increase of 78.8 percent in sales. This data, which only includes sales in Delhi NCT and Mumbai city and suburban areas, indicates a growing trend of buyers in Delhi choosing to invest in property ownership compared to renting, according to a recent analysis by CRE Matrix Research.
Sales of homes in Delhi during 2021 and 2022 surpassed the pre-Covid levels. In 2019, 115,000 houses were sold, followed by 73,777 in 2020. The number increased to 123,000 in 2021 and 134,000 in 2022. Likewise, in Mumbai, 48,654 houses were sold in 2019, 46,368 units in 2020, 77,677 units in 2021, and 74,943 units in 2022. The surge in sales can be attributed to a growing awareness among buyers of the advantages of property ownership over renting.
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The pandemic has prompted the potential buyers and undecided individuals to recognize the importance of owning a home, increasing the demand for housing units in Delhi. Additionally, the reduction in stamp duty has also contributed to the increase in demand for homes.
Commenting on the same, Shashank Vashishtha, Executive Director, eXp India, said, “The fact that the real estate market in Delhi has experienced a significant increase in sales, surpassing Mumbai, is a clear indication of buyers’ growing interest in investing in the real estate market across India. People have realised the importance of home ownership and have taken advantage of the stamp duty reductions. This has contributed to the increase in sales figures, despite the pandemic. This is an excellent time for prospective purchasers to invest in real estate, as the market is gaining momentum and demand is constantly rising.”
Historically, Delhi has been regarded as a secondary real estate market, with the majority of investment and development directed toward other major cities. However, there has been a resurgence of interest in Delhi’s real estate market, particularly in the luxury segment, in recent years. This is due to the city’s growing demand for upscale homes and the return of developers with new, high-end offerings.
“As the national capital, the city has perpetually been a favoured address for residential and commercial developments. In the past few years, developers have redirected their focus back to Delhi’s real estate market. Parts of NCR like Gurugram and Noida have seen many prominent projects launched in the past decade, but Delhi’s realty market has predominantly been reproached to the status of a secondary market. Today, vertical development has become a rational assent to expanding infrastructure barriers like parking spaces, waste disposal, and lack of green spaces, among others, in metro cities. The major realty markets of the National Capital Region – like Gurugram and Noida — have already adopted and have been flourishing with high-rise developments in the past two decades, making way for modern living,” says Aakash Ohri, Group Executive Director and Chief Business Officer, DLF.
While NCR has gained popularity among home buyers by creating a template for future cities; many aspire for a similar lifestyle without compromising the comfort and privilege of living in Delhi. As a result, today, there is an exponential rise in demand for gated communities within Delhi. Homebuyers still have the highest preference to own property in Delhi.
“Today’s home buyers in the Delhi market desire a well-planned community living, with an environment that promises comfort, privacy, and security. Expansive open spaces, walking areas, and green vistas within the complex, amid a well-connected neighbourhood with every urban amenity close by, are some of the demands that Delhiites are yearning for while investing in a new home. With its unsurpassed connectivity to business setups and strong cultural connections, families are keen to find residential options within the city instead of looking elsewhere. This steadfast demand has seen the Delhi real estate market gradually metamorphose from a secondary market to a primary development opportunity with plenty of luxury gated high-rise communities coming up in the city that offer all amenities, facilities, and safety within the complex,” adds Ohri.
DLF has developed DLF Midtown in the center of West Delhi, Shivaji Marg in Moti Nagar. It is planned to be one of the biggest integrated developments in West Delhi and is already home to around 2700 families. One Midtown, a recently-launched project, is part of a larger development plan for DLF Midtown. In the first phase, this high-rise luxury residential project sold towers worth Rs 1500 crore. The project comprises 913 units, which are priced Rs 3 crore onwards. DLF is soon planning to launch the last tower of One Midtown. Similarly, other leading developers like TARC, Godrej, and Parsvanath have launched high rise projects in the national capital in last couple of years.
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In terms of value, Delhi has seen a significant increase in the value of the most expensive house transacted. In 2019, the most expensive house in Delhi was valued at Rs 520 crore, while in Mumbai, it was valued at Rs 96 crore. In 2020, the most expensive house in Delhi was valued at Rs 143 crore, while in Mumbai, it was valued at Rs 95 crore. In 2021, the most expensive house in Mumbai was valued at Rs 1,001 crore, while in Delhi, it was valued at Rs 253 crore. In 2022, the most expensive house in Mumbai was valued at Rs 144 crore, while in Delhi, it was valued at Rs 265 crore.
The increase in housing sales in Delhi indicates a growing trend of buyers choosing to invest in property ownership rather than renting.
