Once a burgeoning city on the outskirts of Delhi, Gurugram has now emerged as the dominant force in the National Capital Region’s (NCR) residential real estate market. In the first half of 2023, Gurugram witnessed a surge in homebuying demand, solidifying its position as the go-to destination for homebuyers.
According to a recent Knight Frank report, among the total units sold in H1 2023, Gurugram accounted for over half of the sales with a substantial 52 per cent market share. Noida and Greater Noida together held a 32 per cent share; while Ghaziabad, Delhi and Faridabad accounted for 12 per cent, 2 per cent, and 2 per cent, respectively.
According to market players, there were two primary factors contributing to this strong performance. Firstly, the pause in the repo rate hike cycle in 2023 provided relief to homebuyers, boosting their confidence in the market. Secondly, the introduction of new inventory by developers, who had overcome the challenges posed by the pandemic, was well-received by interested buyers. This combination of factors resulted in H1 2023 becoming the strongest half-yearly period since H1 2013.
Rahul Singla, director of Mapsko Group, said, “Gurugram’s rise in the real estate market is truly remarkable. With a commanding 52 per cent market share and remarkable growth, it has become the go-to destination for homebuyers. Factors like the pause in the repo rate hike and new inventory introduction have fueled this success.”
He added that Gurugram’s dominance is evident with an 82 per cent share of new launches and upcoming infrastructure improvements. The city’s market share has skyrocketed, making it an exciting market for developers and homebuyers alike.
Although new launches in the NCR region moderated from 34,507 units in H2 2022 to 29,738 units in H1 2023, there was still a 4 per cent year-on-year increase in the launch volume. Developers continued to introduce new projects to meet the latent demand, while also acquiring land for future developments.
Gurugram dominated the new launches, comprising a staggering 82 per cent of the total half-yearly launches. The city’s growing peripherals and upcoming infrastructure improvements, such as the Dwarka Expressway, Delhi-Mumbai Expressway, and Gurgaon Metro expansion, contributed to its robust connectivity and popularity among homebuyers.
Vivek Singhal, CEO of Smartworld Developers, said, “Gurugram’s prominence as a primary hub for residential sales in the NCR remained unchallenged. The city was projected as a poster boy for an IT city since the country opened its economy to international investments. With the third highest per capita income in India and highest per capita income in Haryana, optimal connectivity, and upscale infrastructure, and new age projects in various formats like independent floors, gated plotted developments, and high-rise apartments, the millennium city has become a significant residential and industrial hub luring buyers from across the globe over time.”
He added that Gurugram’s appeal extends to both first and second-generation homebuyers who seek a lifestyle upgrade. The availability of high-rise living options aligns with the post-pandemic trend, while improved connectivity supports the city’s real estate boom.
Gurugram’s market share steadily increased from 12 per cent in H2 2019 to an impressive 52 per cent in H1 2023. The city’s various locations, including large township projects on Golf Course Extension Road, New Gurugram, and the Dwarka Expressway, attracted buyers looking for a lifestyle upgrade. Gurugram’s high-rise living and improved connectivity to the city’s main areas and peripherals were significant factors driving its real estate boom.
Shashank Vashishtha, executive director of eXp Realty India, said, “This surge in real estate demand in Gurugram has not only propelled the city’s growth but also prompted real estate developers in the NCR region to actively acquire land and forge strategic partnerships for innovative residential projects, adapting to the evolving market dynamics.”
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