While a variety of factors is driving this confidence, the continued price movement serves as evidence of a strong demand base, reflecting the robust sentiment in the market.
Completed projects in most of these cities have witnessed higher appreciation in capital values as compared to under-construction projects. This preference could be influenced by factors such as reduced uncertainty, immediate availability for use, and the ability to assess the actual quality and features of the property.
“As we step into 2024, the outlook for the premium to luxury residential segment in key urban hubs like NCR and Mumbai remains exceptionally promising. The doubling of new launches in Gurugram and Noida reflects a growing appetite for luxury residences. This surge not only underscores the resilience of the market but also signifies a growing demand for upscale living experiences,” said Arvind Nandan, Managing Director, Research & Consulting, Savills India.
As the residential market gains momentum and capital values experience a surge in recent months, buyers are motivated to make purchasing decisions, anticipating a continued strengthening of property prices.
Mumbai witnessed an average 9% YOY rise in capital values for completed properties while a 4% YOY increase for under-construction properties.The micromarkets of Central Mumbai and Navi Mumbai witnessed a significant increase of 12%-25% YOY in capital values on account of newer completions commanding higher prices because of better specifications than the existing projects in the market.Buyers are preferring larger homes and are also looking to upgrade from existing smaller apartments, hence the demand for large apartments and penthouses in South Mumbai, Central Mumbai and Western Suburbs Prime has risen.
East Bengaluru saw the highest capital value appreciation in under-construction projects at 5.3%, driven by new projects with higher specifications. Meanwhile, North Bengaluru recorded a similar growth of 5.1% over the previous year.
Delhi overall witnessed an increase of 18% YOY in the average capital value of luxury floors. South-East Delhi remains the top micromarket with the highest price appreciation of 31% on an annual basis for luxury floors, followed by the South-West & South Central micromarkets which registered a YOY growth of 24% & 15% respectively.
The average capital values of completed and under-construction properties peak over the last 5 years with 36% and 25% YOY growth registered at city level respectively.
Both categories, under-construction as well as completed properties saw a notable increase in the average capital value between 12% to 45% YOY.
Average Capital values of completed and under-construction properties in Noida witnessed a significant YOY increase of 32% & 31% respectively.
