As the festive season graces India, the real estate market is poised for its traditional surge, fuelled by developer incentives and strong economic indicators. This year, a confluence of factors, including evolving buyer preferences and robust infrastructure development, is driving growth, particularly in emerging luxury hotspots like Gurugram.
CBRE’s Festive Season Residential Outlook 2024 predicts continued growth, building on the strong sales performance witnessed throughout 2023 and the first nine months of 2024. Developers are preparing a range of attractive offers for homebuyers, including EMI waivers, GST exemptions, and complimentary add-ons like modular kitchens and furnished apartments. Some developers are even partnering with banks to offer fixed interest rates for specified periods, further sweetening the deal.
“Building on the strong sales performance throughout 2023 and the Jan-Sep 2024 period, the housing market remains well-positioned for continued growth as we approach the festive season,” says Anshuman Magazine, Chairman & CEO (India, South-East Asia, Middle East & Africa) of CBRE. “Traditionally, this time of the year is considered auspicious for home purchases, hence the sector will witness a surge in demand, particularly from previously hesitant first-time homebuyers.”
Gurugram, in particular, is attracting significant attention, emerging as a focal point for luxury real estate investments. Major infrastructure developments, coupled with a growing affluent population, are driving this trend. Knight Frank’s India Real Estate Report reveals a 12% year-on-year increase in property sales across the Delhi-NCR region in the first half of 2024, with Gurugram playing a significant role. Areas like Golf Course Road, Golf Course Extension Road, and Southern Peripheral Road (SPR) are highly sought after due to their excellent connectivity, commercial expansion, and luxury residential projects.
Aakash Ohri, Joint Managing Director and Chief Business Officer of DLF Homes, notes, “The Indian festive season has evolved into the annual high point for residential real estate. This auspicious time is seen as an ideal opportunity to invest in wealth-creating assets. The growing significance of homeownership, bolstered by consumer confidence in recent years, has notably stimulated housing demand.” He adds, “This year, the sector is poised to experience a substantial upsurge, particularly in the luxury segment, attracting HNIs and UHNIs, as well as significant investments from the NRI community.”
This demand for luxury is reflected in a report by Liases Foras, which shows that luxury property prices in Gurugram increased by an average of 8% in the first half of 2024. Prime areas like Golf Course Extension Road and Dwarka Expressway are outpacing the national average in price appreciation, solidifying their status as prime investment hotspots.
Vineet Dawar, Senior Vice President of Sales & Strategy at Elan Group, echoes this sentiment, stating, “With market sentiment already strong, we anticipate that the festive season will further accelerate the real estate sector’s growth. Both the residential and commercial segments are seeing promising buyer interest, particularly in key areas of the Delhi-NCR such as Dwarka Expressway and SPR road.”
Gurugram’s success is intrinsically linked to its continuous infrastructure improvements. The expansion of the Rapid Metro and the upgrade of SPR have significantly enhanced connectivity, attracting both residential and commercial interest. Savills India reports that commercial leasing in Gurugram grew by 18% in the first half of 2024, with SPR and Dwarka Expressway emerging as key growth corridors for IT parks, retail outlets, and office spaces.
Rahul Singla, Director of Mapsko Group, highlights a shift in buyer preferences, stating, “After the pandemic, there’s been a marked rise in demand for homes that offer more space and lifestyle features like work-from-home setups. We’re expecting strong interest in the mid-to-luxury market segments, as more buyers now prefer comfort, convenience, and enhanced living experiences.”
Mohit Malhotra, Founder and CEO of NEOLIV, adds, “As the festive season approaches, expectations for sales in Gurgaon’s real estate market are high. This period typically ignites increased buyer interest, driven by optimism and the desire to invest in new homes. Developers are expected to roll out attractive offers and along with the ongoing infrastructure improvements we can expect a good festive period.”
Beyond Gurugram, emerging markets like Sonipat and Panchkula are also witnessing increased real estate activity. Sonipat, benefiting from its proximity to Delhi and ongoing infrastructure projects like the KMP Expressway, is attracting both residential and industrial investment. Panchkula, close to Chandigarh, is seeing growing interest due to its strategic location and burgeoning IT and business hubs.
Impact of Loan Rates
Despite higher loan rates, homeownership remains a priority for many. RBI data shows a substantial 40% increase in home loan deployment, reflecting the resilience and confidence in the housing market. However, credit providers need to remain cautious to manage NPAs effectively.
In conclusion, the festive season is set to illuminate India’s real estate market, driven by a potent mix of developer incentives, evolving buyer preferences, and strong economic fundamentals. While Gurugram shines as a luxury hotspot, emerging markets are also presenting compelling investment opportunities. As the year progresses, the sector appears poised for sustained growth, fuelled by the enduring aspiration for homeownership and the allure of a prosperous future.
