MARKET

IN India | Year-End 2023

MINUTES
Savills Research Delhi-NCR Residential
Market Watch

In this report, we focus on the premium residential segment.

ECONOMY growth. However, food

inflation remains a short-term
DELHI-NCR REGULATORY
ROUND-UP headwind for the Indian ANNOUNCEMENTS
economy. The RBI’s inflation
• India recorded a robust GDP • The Municipal Corporation of Delhi has made it
projection for FY24 currently
growth of 7.7% in the first half mandatory to geo-tag all kinds of properties to avail 10%
stands at 5.4%, well within the
of FY24 exceeding all property tax exemption. The move will enable the civic
tolerance zone of 2-6%.
forecasts. Amidst new agency in location-based identification of properties and
geo-political conflict in the • Despite high inflation making better service delivery.
Middle East, India recorded its way back in few months
• The New Delhi Municipal Council hiked the property
strong growth aided by through 2023, the RBI has
transfer fee by 1% w.e.f August 1, 2023, on the sale and
supportive domestic played a commendable role in
purchase of properties in the New Delhi area.
consumption and impressive achieving high growth while
growth in manufacturing. keeping the repo rate • The Haryana Government brought in a new policy to
Owing to the healthy growth, unchanged at 6.5% since Feb permit the conversion of residential plots into
RBI has revised GDP growth 2023. This has helped in commercial ones. This would benefit owners of
projections for the current boosting consumer properties as these prices would increase post
financial year from 6.5% to confidence, especially in real conversion.
7.0%. estate, resulting in robust sales
• The Haryana Government relieved developers from an
during the year.
• Domestic inflation softened in additional responsibility of constructing power
the last few months of 2023, substations. The same would now be done by DISCOMS,
with October reporting a 4.9% thereby reducing the cost of developing electrical
infrastructure for builders between 20% and 72%.

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 South East & South West
micromarkets witness highest
rise in average capital values
of floors

Delhi
PRICE TREND
Average Capital Values for Plots Average Capital Values for Floors
(INR per sq. yard) (INR per sq. ft.)

16,00,000 105,000

14,00,000
90,000

12,00,000
75,000

10,00,000
KEY
60,000 TRANSACTIONS
8,00,000
45,000 Transaction: Sale
6,00,000
Location: Vasant Vihar
30,000 Asset Type: Bungalow
4,00,000
Area: 1,200 sq. yards
2,00,000 15,000 Asset Description:
Independent house
Price: INR 91.0 Crore
-
South South South Central 1 Central 2 South South South Central 1 Central 2
West East Central West East Central
Transaction: Sale
2019 2020 2021 2022 2023 Location: Jorbagh
Source: Savills India Research
Asset Type: Apartment
• The average capital values of luxury floors in Delhi 24% and 15% respectively in luxury floor prices. Area: 2,800 sq. ft.
witnessed an increase of 18% YOY at a city level. Asset Description: Top
• Demand-supply mismatch has also played a role in floor with terrace
The price escalation is mainly attributed to higher
pushing up floor prices across micromarkets. Top Price: INR 25.0 Crore
land acquisition cost and increased cost of
floors with terrace remained the foremost choice
construction after the maximum height permitted
of elite buyers.
for buildings was raised to 17.5 metres from the Transaction: Sale
erstwhile limit of 15 metres. • After a period of stagnancy in 2019 and 2020, and Location: Anand Lok
witnessing rangebound increase in 2021 and 2022, Asset Type: Apartment
• Delhi witnessed a surge in demand for luxury
the average capital values of residential plots saw
floors offering state-of-the-art amenities and Area: 4,200 sq. ft.
a significant jump in 2023. The city witnessed an
sustainability. This reflects the aspirations of Asset Description:
overall increase of 23% in average capital values.
buyers who are buying houses with better Park-facing corner plot
Asking prices in most of the micromarkets have
aesthetics and enhanced functionality at Price: INR 22.0 Crore
gone up more than 20% over the year with Central
extraordinary prices. South East Delhi remains the
2 micromarket registering a remarkable increase of
top market with 31% appreciation registered in
up to 30% YOY. Transaction: Sale
average capital values on an annual basis. This is
Location: Westend
followed by the South West & South Central • Delhi witnessed the launch of approximately 300
micromarkets, which registered YOY growth of apartments in the luxury segment in 2023. Asset Type: Apartment
Area: 4,000 sq. ft.
Asset Description:
RENTAL TREND Apartment with ultra-luxe
(INR per
(INR permonth)
month) facilities
• Average rental values DELHI MICROMARKETS
350,000 Price: INR 22.0 Crore
witnessed growth of 26% at South West - Shanti Niketan, Anand
Niketan, Westend, Vasant Vihar
a city level in 2023 in Source: Savills India Research
300,000
comparison to 11% annual South East - Friends Colony East,
Friends Colony West, Maharani Bagh,
250,000 increase reported in 2022. Greater Kailash - I, Greater Kailash - II
Notes:
• Average capital value for projects
is the quoted base price on
200,000 • Central 1 micromarket South Central - Defence Colony, Anand
saleable area.
Lok, Niti Bagh, Gulmohar Park, Hauz
witnessed the highest Khas Enclave, Safdarjung Development • Average rentals are for
apartments/floors with average
150,000 growth with 35% YOY Area, Mayfair Gardens, Panchsheel
size of 2,000-2,500 sq. ft. with
Park
increase in average rentals. stilt car-parking.
100,000
This was followed by the Central 1 - Jorbagh, Golf Links, • The quoted capital and rental
values for the current year are as
Malcha Marg
50,000
South East and South of December 2023.
Central 2 - Amrita Shergil Marg,
Central micromarkets that • The quoted capital values for plots
in the Central 2 micromarket,
Aurangzeb Road, Prithviraj Road,
- observed 25% annual hike Sikandara Road, Tilak Marg, Ferozshah especially in the Lutyen’s
South South South Central 1 Bungalow Zone, is a function of
West East Central
in average rental values. Road, Mann Singh Road, Tees January
the plot size and the size of the
Marg, Sunder Nagar, Chanakyapuri structure built over it. Generally,
2019 2020 2021 2022 2023 plots with a bigger built-up area
Source: Savills India Research trade at higher rates as compared
to plots having smaller built-up
area.

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 Properties’ prices
peak over the last
5 years

Gurugram
PRICE TREND KEY
Average Capital Values for Completed Properties Average Capital Values for Under-Construction TRANSACTIONS
(INR per sq. ft.) Properties (INR per sq. ft.)
35,000 Transaction: Sale
30,000 Location: Golf Course Rd.
25,000 Asset Type: Apartment
20,000 Area: 6,400 sq. ft.
Asset Description:
15,000
4-BHK apartment in a
10,000 premium project
5,000 Price: INR 25.0 Crore
-
Golf Course GCER & New Dwarka Golf Course GCER & New Dwarka
Transaction: Sale
Road SPR Gurugram Expressway Road SPR Gurugram Expressway
Location: Golf Course Rd.
2019 2020 2021 2022 2023
Source: Savills India Research Asset Type: Plot
Area: 502 sq. yards
• The year 2023 has witnessed the highest role in enhancing the real estate quotient and Asset Description:
appreciation in recent years in capital values of overall appeal of these micromarkets. Plot located in a premium
completed and under-construction properties locality
• Golf Course Road and GCER & SPR topped the Price: INR 12.3 Crore
averaging 36% and 25% YOY increase at a city
charts for ready-to-move properties with a YOY
level, respectively.
increase of 45% and 39% respectively in average Transaction: Sale
• Under-construction and completed properties capital values. Location: South City I
across micromarkets witnessed an astounding Asset Type: Plot
• Overall, the growth trajectory of the luxury
increase in average capital values in the range of Area: 500 sq. yard
residential segment in Gurugram has been
12% to 45% YOY. New Gurugram & Dwarka Asset Description: Plot
incredible. Increase in disposable income of the
Expressway, with an annual increase of 45% and located within a gated
upper-middle class, burgeoning start-ups adding society
21% in average capital values of under-construction
more HNIs in the region, improvement in physical
properties respectively, were the top-performing Price: INR 12.25 Crore
infrastructure and yearning to live a quality life
micromarkets in 2023. Completion of Dwarka
among millennials have culminated in higher Transaction: Sale
Expressway, improved infrastructure and a flurry of
demand and spiraling prices of luxury homes . Location: South City II
new projects by renowned developers offering
ultra-modern facilities, have played a phenomenal Asset Type: Plot
Area: 500 sq. yard
Asset Description: Plot on
RENTAL TREND PRICE TREND FOR PLOTS 18-meter-wide road
Price: INR 7.5 Crore
(INR per month) Average Capital Values Source: Savills India Research
(INR per sq. yard)
2,40,000
3,50,000
3,00,000 YOY
2,00,000
2,50,000 Comparison
2,00,000
1,60,000
1,50,000

1,20,000 1,00,000 3,758 units

50,000 2022
80,000 -
Golf Course GCER & New Dwarka

40,000
Road SPR Gurugram Expressway
9,097 units
2019 2020 2021 2022 2023 2023
Source: Savills India Research
- New launches of luxury units in
Golf Course GCER & New Dwarka
Gurugram increased more than
Road SPR Gurugram Expressway • The average capital values of residential plots in Gurugram 2X in 2023. The micromarkets
2022 2023 registered an increase of 20% YOY in 2023 at a city level. of GCER & SPR and New
Source: Savills India Research Gurugram together accounted
• Dwarka Expressway with 22% YOY growth witnessed the for 90% of the new launches.
• Average rentals witnessed an maximum increase in average capital values. GCER & SPR and
increase of 27% YOY at a city level. Golf Course Road stood behind with 20% and 19% YOY growth Notes:
respectively. • Average capital value for projects is the
quoted base price on saleable area.
• Dwarka Expressway and Golf • Capital values are reflective of properties
Course Road witnessed the highest • Continued ban on fourth-floor construction by the Haryana priced INR 2 crores and above.
• Average quoted rentals are for 3 & 4-BHK
increase with 36% and 30% YOY Government is likely to have adversely affected the price apartments on Golf Course Road and
3-BHK apartments in other
growth, respectively. appreciation of plots in the city. However, the move has been micromarkets.–
instrumental in pushing up floor prices, thereby causing a setback • The quoted capital and rental values for
the current year are as of December
to prospective buyers. 2023.
• GCER - Golf Course Extension Road
• SPR - Southern Peripheral Road

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 Sector 150 micromarket
witnesses highest price
appreciation for under-
construction properties

NOIDA
PRICE TREND
Average Capital Values for Completed Properties Average Capital Values for Under-Construction
(INR per sq. ft.) Properties (INR per sq. ft.)

18,000

15,000

12,000

9,000

6,000

3,000

-
NOIDA-Greater
NOIDA Expressway
Sector 150 NOIDA Others NOIDA-Greater
NOIDA Expressway
Sector 150 NOIDA Others
YOY
2019 2020 2021 2022 2023 COMPARISON
Source: Savills India Research

• Average capital values of completed and under- • The growth of capital values for both completed
construction properties in NOIDA witnessed a and under-construction properties in Sector 150 is 921 units
significant increase of 32% and 31% respectively on quite noteworthy. This is mainly attributed to its 2022
a YOY basis at a city level. strategic location offering easy access to NOIDA-
Greater NOIDA Expressway and the upcoming
• With 47% YOY growth, Sector 150 micromarket
witnessed the highest growth in capital values for
Jewar International Airport. Presence of reputed 2,039 units
developers, enhanced connectivity with other 2023
under-construction properties.
parts of the National Capital Region and
• NOIDA Others with a 36% YOY increase, remains announcement of new developments like the
the top-performing market in the category of International Cricket Stadium etc. have improved New launches of luxury
completed properties. Sector 150 places itself at the overall appeal of the area, thereby increasing units more than doubled
the second position in this category with 32% YOY prices significantly in the last few quarters. in 2023. More than 65%
increase. of the new developments
are coming up along the
NOIDA-Greater NOIDA
RENTAL TREND Expressway, highlighting
the increased
(INR
(INR per
per month)
month) prominence of this
70,000
micromarket in the
• NOIDA Others micromarket, with 7% YOY increase, witnessed the luxury residential
60,000
highest rental growth in 2023. segment.
50,000
40,000 • Newer availability of luxury residential apartments in Sector 150
30,000 has resulted in softening of average rental values in the
20,000 micromarket.
10,000
Notes:
- • Average capital value for projects is
NOIDA-Greater Sector NOIDA the quoted base price on saleable
NOIDA Expressway 150 Others area.
• Capital values are reflective of
2022 2023 properties priced INR 2 crores and
KEY TO MICROMARKETS above.
Source: Savills India Research NOIDA Others - Sectors 50, 75, 78, 79 & 107 • Average quoted rentals are for
3-BHK apartments.
• The quoted capital and rental values
for the current year are as of
December 2023.

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OUTLOOK • Government interventions, like limiting the
Savills Property
deductions from capital gains on investments in Services (India)
• The luxury residential market of Delhi-NCR has residential houses to INR 10 crore w.e.f from Private Limited
grown steadily over the last two years. Looking April 1, 2024, are expected to have an adverse 3-A&B, 2nd Floor,
Building 9B
at the combined effect of robust performance effect on luxury housing deals thereafter. DLF Cyber City, Phase 3
this year and heightened economic activity, the Hence, we may see heightened momentum in Sector 24,
Gurugram 122 002
market is expected to witness persistent growth Q1 2024.
in 2024. Please contact
• Peripheral micromarkets in Gurugram such as us for further information
• Demand for luxury housing continued through Dwarka Expressway, New Gurugram and Shveta Jain
the year. This led to significant price Southern Peripheral Road (SPR) and Sector 150 Managing Director
Residential Services
appreciation of completed and under- in NOIDA will continue to catch attention of shveta.jain@savills.in
construction properties alike in most buyers. The capital and rental values in these Rajat Johar
micromarkets of the region. Although Managing Director
micromarkets are anticipated to witness Delhi-NCR
developers are acquiring land and plan to infuse significant price appreciation owing to rajat.johar@savills.in
fresh supply of luxury units to cater to the improved connectivity with the completion of AUTHORS
demand, the hike is expected to continue in the the Dwarka Expressway in Gurugram and Jewar
Shashwat Srivastava
year 2024. International Airport in NOIDA. Assistant Manager
Research & Consulting
shashwat.srivastava@savills.in

Megha Maan
Director
Research & Consulting
megha.maan@savills.in

Arvind Nandan
Managing Director
Savills
Research & Consulting
Savills PLC is a global real estate services provider listed on the London Stock Exchange. We have an international network of more than 700 offices and 40,000 associates arvind.nandan@savills.in
throughout the Americas, the UK, continental Europe, Asia Pacific, Africa and the Middle East, offering a broad range of specialist advisory, management and transactional
services to clients all over the world. MEDIA
Savills India
Savills India is a group company of Savills PLC and is a premier professional international property consulting firm. With full-service offices in Bengaluru, Mumbai, Delhi
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NCR, Chennai, Pune, Ahmedabad and Hyderabad, the firm serves occupiers, investors and developers of Real Estate. The company provides services across office leasing, Corporate
project management, capital markets, valuations, research, consulting, industrial and logistics and residential services. Started in India in 2016, the company employs over Communications Lead
600 professionals. chinmoyee.kalita@savills.in

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 savills.in

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