Delhi real estate has an optimistic future ahead. A variety of factors are contributing to its surge in growth, such as increasing incomes and luxury amenities.
Demand for residential properties continues to outstrip commercial ones and this trend is projected to persist through 2023.
- The millennials
One of the primary drivers of real estate market growth in Delhi-NCR is the millennial generation. They are driving demand for both residential and commercial properties; seeking homes with modern amenities that can easily connect to transportation; while investing in properties that will appreciate over time.
Millennials are also driving the development of new projects in the city, such as luxury apartments and integrated townships, which are drawing investors to invest in them. Furthermore, their influence is helping expand tourism industries throughout the region.
Delhi real estate’s future looks bright as millennials drive demand for housing and commercial properties. Now is an excellent time to invest as prices remain affordable. Additionally, the Delhi-Mumbai Expressway should help boost real estate investments as residents will spend less time traveling between Mumbai and Delhi each day, alleviating stress on roads while improving economic health in both cities.
- The new affluent class
Modern buyers of luxury real estate in Delhi have different lifestyle expectations than their older professionals counterparts, preferring upscale neighborhoods with access to quality education systems and bustling business hubs, along with access to an active social scene and plenty of amenities such as parks. As a result, demand has skyrocketed for luxury homes in this city.
According to the Luxury Outlook Survey 2023, HNIs and UHNIs are increasingly viewing residential real estate as an advantageous avenue for both end use and investment purposes. Furthermore, this survey revealed that Delhi-NCR was among the top locations among these luxury buyers alongside Mumbai, Bangalore, and Goa.
These increased interests have inspired developers to offer various new forms of residential formats ranging from Spanish-inspired villas and Disney apartment complexes, to Spanish-themed villas. As more and more people migrate to Delhi-NCR for work and pleasure, their increased number will have an undoubted positive effect on its real estate market.
- The post-pandemic effect
Residential real estate sales and construction activities have ground to a halt due to pandemic influenza, taking time for this sector to return. Furthermore, rising commodity prices are impacting profitability for developers.
Office real estate has seen steady improvement. Mumbai and Delhi NCR led in gross leasing in the first half of 2021 – this positive sign bodes well for India as one of its primary markets for commercial real estate development.
Homebuyers in major markets such as Mumbai and Delhi NCR are finding it more challenging to purchase property. Affordability has decreased since reaching its peak last year.
- The affordability factor
Affordability is an essential component of real estate demand. Rising construction and mortgage costs have hindered homebuyers’ ability to purchase properties, leading to reduced new launches and sales activity.
2023 should see this trend reverse as developers offer more affordable options and consumers seek greater value for their money, which will allow the market to reach new heights of success and expansion.
Delhi is India’s largest urban agglomeration and offers investors and end users alike numerous opportunities. From its flourishing IT sector to Metro connectivity and affordable micro markets, Delhi’s real estate sector continues to flourish.
Additionally, Delhi’s infrastructure spending has given an additional boost to its real estate market. Furthermore, world-famous companies operating within its borders should create job opportunities which, in turn, increase residential as well as commercial real estate demand in Delhi and make for a prosperous real estate future that may surprise many.
- The connectivity factor
With enhanced highways and Metro connectivity, real estate is expected to see significant growth in Delhi’s neighbouring areas like Noida, Ghaziabad, Gurugram and Faridabad. Commute will become easier, prompting an upsurge in demand for residential and commercial properties in these locations as commute time reduces. Furthermore, such projects generate economic activity in these locations as well as taxes generated via sales tax/stamp duty revenue for governments.
Investment in premium residential projects has increasingly become a safe and rewarding asset class among HNIs, UHNIs, and NRIs, due to their luxurious living space and desirable locations.
Delhi offers an abundance of affordable and luxury properties, but before making a selection it is crucial to conduct proper market research and seek professional advice from trusted sources. Also avoid legal disputes which could cause delays and costly overruns that threaten your investment over time. Therefore it is vitally important that a project has an honest developer so as to protect it fully from being negatively impacted.