Delhi NCR has emerged as a top contender in the global luxury real estate market, securing the 6th position among 44 cities. With this, the crown of India’s Billionaire Row has shifted from Mumbai to Delhi NCR, where Rs 100 crore deals by high-net-worth Indians seem to be the norm. A report by Aayush Goel
Delhi NCR has emerged as a top contender in the global luxury real estate market, securing the 6th position among 44 cities worldwide for the highest price appreciation of luxury homes, according to the latest Prime Global Cities Index Q4 2024 by real estate consultant Knight Frank. The region saw a 6.7% increase in luxury home prices during the December 2024 quarter, reflecting a growing demand for high-end properties in India’s national capital region.
The Prime Global Cities Index, a valuation-based tracking system for prime residential prices, evaluates price changes in luxury properties across 44 cities globally. Seoul topped the list with a remarkable 18.4% surge, followed by Manila (17.9%), Dubai (16.9%), Tokyo (12.7%), and Nairobi (8.3%). A Rs 90 crore ultra-luxury apartment deal in Gurugram, a Rs 130 crore bungalow transaction in New Delhi’s posh Kautilya Marg, 2024 has undoubtedly been the year of the boom of super luxury realty. What however caught the attention was the shifting of the crown of India’s Billionaire Row from Mumbai to Delhi NCR, Gurugram to be specific where 100 crore deals by high-net-worth Indians seem to be the norm. It was at the tail end of last year when in December 2024 history was rewritten in the Indian real estate market. An ultra-luxurious penthouse in Gurugram was sold for a whopping 190 crore. Spanning an impressive 16,290 sq. ft., this opulent property in DLF’s luxury residences Camellias was bought by Info-x Software Technology Pvt Ltd through its director Rishi Parti. The deal which got Haryana a stamp duty of over 13.30 crores has taken per sq. ft. rate to around two lakhs, which is way higher than most sought-after areas in Delhi and even Mumbai. Previously, Mumbai’s Lodha Malabar held the title for India’s costliest high-rise transaction, with three apartments sold for Rs 263 crore at Rs 1.36 lakh per sq. ft. (carpet area). While the world was still digesting Camellias, the realty major’s next project Dahlias sent realtors, and investors into a frenzy. Touted to be the most expensive residential project in India has clocked sales of Rs 11,816 crore by selling 173 super-luxury apartments in just nine weeks of the pre-launch of The Dahlias. Two penthouses here have reportedly been sold for Rs 150 crore each. It’s not just Mumbai but Delhi-NCR seems to be competing with the world’s billionaire row New York as well. While 30 crores can buy you an apartment in swanky DLF’s the Magnolias in Sector 42 with a built-up area of around 5,000 sq. ft., the same amount can fetch you a 6-room penthouse with two terraces with the Empire State Building view in New York.
64 percent of luxury residential launches in Delhi-NCR
Luxury real estate in Delhi-NCR is seeing sustained growth, offering buyers a diverse range of options, from established high-end neighborhoods to rapidly developing micro-markets. As per CBRE, the real estate sector saw a growth in land deals in 2024, with transactions exceeding 2,200 acres from around 1,900 acres in the previous year, with Delhi-NCR taking the lead. Besides, the Delhi-NCR micro-markets led the chart with over 40 land deals, with Gurugram accounting for more than 60%, followed by Noida and Greater Noida with a 25% share of NCR deals. This uptick in activity across regions highlights a major shift in the luxury housing segment. According to a similar report by real estate analyst JLL, among the top seven cities in India, Delhi-NCR stood out with a remarkable 64% share of luxury residential launches in 2024. NCR saw around 23,500 residential units launched in Delhi-NCR, exceeding the total launches of 2023, which stood at 22,707 units. Gurugram dominated with 55% of the new launches, while Noida contributed 35% in 2024. Notably, over 26% of these new launches, totaling about 6,200 units, comprised luxury apartments (priced at Rs 5 crore or above).
ANAROCK data shows that a total of 25 ultra-luxury homes priced over Rs 40 crore were sold in Mumbai, Hyderabad, Gurugram and Bengaluru in the first eight months of 2024 for a collective sales value of approximately Rs 2,443 crore. It may be noted that Delhi-NCR tops the country in housing price surge in the last one year registering an increase of around 32%. According to latest year-on-year (YoY) comparison of the third quarter by CREDAI–Colliers- Liases Foras, many parts in Gurugram like Dwarka Expressway, Golf Course Road Extension and Sohna Road witnessed over 50% yearly price growth. The report highlights average housing prices across the top eight markets in India rose 11% YoY at INR 11,000 per sq ft during the third quarter of 2024. Interestingly, average housing prices have increased for the 15th consecutive quarter since 2021. While Delhi NCR witnessed the highest rise, Bengaluru stood second at 24% while Ahmedabad and Pune registered an increase of 16% and 10% respectively. The Mumbai Metropolitan Region recorded a surge of a meager 4 percent while Kolkata and Hyderabad stood at 3 percent and Chennai at 2 percent.
According to industry experts, the trend to buy luxury homes will continue in 2025 with increased demand in newly developing areas in metros, and prime areas of Tier-2 cities, with improved connectivity and world-class infrastructure, and the rise of luxury gated communities and smart homes. “The premium housing market had a sustained demand in 2024, driven by young professionals, mid-income buyers, and first-time homeowners. Key areas such as Golf Course Extension Road and the Dwarka Expressway experienced a surge in new housing projects, offering a combination of comfortable living and excellent connectivity at competitive prices. Additionally, government incentives like reduced stamp duties and home loan subsidies significantly boosted the demand for premium housing”, said Harinder Dhillon, Senior Vice-President of Sales at BPTP.
What’s driving the growth
The luxury realty in Delhi-NCR is fueled by several factors including increased affluence, a growing number of high-net-worth individuals, and the area’s appeal as a business and political hub. Additionally, the Indian luxury market is benefiting from economic stability and a positive outlook, encouraging affluent buyers to seek lifestyle upgrades in the form of more spacious, sophisticated homes. Recent infrastructure upgrades like Dwarka Expressway, Southern Peripheral Road (SPR), and Jewar Airport have given a major push to the NCR being chosen as the destination by high-net-worth Individuals with proximity to key business hubs.
“The surge in demand for ultra-luxury homes in the Indian real estate industry is fueled by a rise in wealth creation and economic resilience among affluent segments. Gurugram, particularly areas like Golf Course Road and DLF5, has emerged as a prime destination for real estate investment, witnessing record growth in capital appreciation, rental yield, and demand for newly launched projects. This shift is driven by a new-found appreciation for real estate as both an appreciating asset and a source of tangible and intrinsic value,” says Aakash Ohri, Joint Managing Director & Chief Business Officer, of DLF Homes. According to Ohri, India has witnessed a remarkable increase in the number of UHNIs (Ultra-High-Net-Worth Individuals), with expectations of further wealth growth, alongside a projected 50% growth in UHNIs over the next five years.
“In addition to this, Gurugram is luring a lot of UHNI diaspora, further bolstering the uber-luxury real estate market. Price inelasticity in luxury goods reflects the unique value and prestige associated with such products. Moreover, the appeal of super luxury homes extends beyond comfort and opulence to include a sense of community and prestige, attracting discerning buyers who previously invested in other asset classes or luxury goods”, adds Ohri.
