Achieving a remarkable sellout valued at approximately Rs 5,590 crores, within 3 days.

India’s largest realty firm DLF has sold all 795 apartments for Rs 5,590 crore within three days of the launch of its new luxury housing project in Gurugram, driven by strong demand from consumers including NRIs. In a regulatory filing on Thursday, the company informed about the successful launch of its latest luxury residential project ‘DLF Privana West’, “achieving a remarkable sellout valued at approximately Rs 5,590 crores, within 3 days.” The new project is spread over 12.57-acre comprising 795 apartments.

The average selling price was around Rs 7 crore per apartment. In January this year, the company had sold 1,113 luxury apartments in Gurugram for Rs 7,200 crore within three days of the launch of its project ‘DLF Privana South’, which is spread over 25-acre. Both ‘DLF Privana West’ and ‘DLF Privana South’ are part of its 116-acre township ‘DLF Privana’ located in Sector 76 and 77 at Gurugram in Haryana. According to sources, DLF received Expression of Interests (EOIs) from around 1,550 and 1,600 customers, almost double of total units being offered in this new project, reflecting high demand for ultra-luxury homes. Non-resident Indians (NRIs) lapped up around 27 per cent of the total 795 units.

NRIs have been investing a lot in premium housing projects in Gurugram to earn decent rental income, besides capital appreciation. In January this year, the company had sold 1,113 luxury apartments in Gurugram for Rs 7,200 crore within three days of the launch of its project ‘DLF Privana South’, which is spread over 25-acre. Both ‘DLF Privana West’ and ‘DLF Privana South’ are part of its 116-acre township ‘DLF Privana’ located in Sector 76 and 77 at Gurugram in Haryana. According to sources, DLF received Expression of Interests (EOIs) from around 1,550 and 1,600 customers, almost double of total units being offered in this new project, reflecting high demand for ultra-luxury homes.

Non-resident Indians (NRIs) lapped up around 27 per cent of the total 795 units. NRIs have been investing a lot in premium housing projects in Gurugram to earn decent rental income, besides capital appreciation. Commenting on the development, Aakash Ohri, Joint Managing Director and Chief Business Officer, DLF Home Developers Ltd, said, “After the overwhelming success of DLF Privana’s inaugural project DLF Privana South, ‘DLF Privana West’ emerges as the next chapter in this story, meticulously designed to cater to discerning homebuyers’ aspirations for spacious, luxurious abodes within a vibrant, well-connected community.”

He said NRIs have bought a substantial portion of apartments in this new project. “Our aspiration with DLF Privana and its associated projects is to emulate the success of DLF Phase 5, by curating an integrated ecosystem of luxury residences amidst abundant greenery, fulfilling the most coveted lifestyle requisites.” In March last year, DLF sold 1,137 luxury apartments, priced Rs 7 crore and above, in its housing project in Gurugram for over Rs 8,000 crore within 3 days. Gurugram housing market has witnessed a significant growth in demand for residential properties, leading to a sharp rise in prices. The demand has sustained so far despite the hefty price appreciation.

Overall also, India’s housing market across the top seven major cities has been performing very well post Covid pandemic on pent-up demand and rising aspirations for homeownership. The consumer demand is shifting towards those developers who have a good track record of executing real estate projects on time. DLF is India’s leading real estate developer in market capitalisation. DLF has developed more than 158 real estate projects and developed an area in excess of 340 million square feet. DLF Group has 215 million square feet of future development potential across residential and commercial segments

Magicbricks has unveiled its latest rental update for the period spanning January to March 2024, revealing a notable uptick in rents across 13 major Indian cities. The report underscores a substantial 16 per cent year-on-year surge in rental rates, with Greater Noida, Gurugram, and Bengaluru spearheading the growth trajectory with year-on-year growth rates of 32.1 per cent, 24.5 per cent, and 23.7 per cent, respectively.

In addition to the year-on-year escalation, the quarterly report highlights a 2.8 per cent quarter-on-quarter increase in rents, following a 1.6 per cent uptick observed in the preceding quarter spanning October to December 2023. Notably, rental demand has surged by a significant 16 per cent quarter-on-quarter during the review period, with Chennai, Navi Mumbai, and Noida registering the highest demand growth rates of 24.9 per cent, 20.1 per cent, and 19.2 per cent quarter-on-quarter, respectively.

However, amidst the burgeoning demand, the supply of rental units experienced a marginal uptick of 1.8 per cent quarter-on-quarter, attributed to the swift absorption of available rental properties.

Abhishek Bhadra, Head of Research at Magicbricks, elucidated the underlying dynamics propelling the surge in rents, attributing it to the resurgence of office operations since 2022. Bhadra noted that residential rental yields, which averaged around 3 per cent prior to 2020, have witnessed a discernible surge in tandem with the heightened rental demand, consequently offering higher yields to landlords.

Anticipating the continuity of this upward trajectory in rents over the forthcoming months, Bhadra underscored that rental activity typically peaks in the initial two quarters of the fiscal year. Notably, residential and IT hubs such as Bengaluru, Gurugram, Hyderabad, and Noida have witnessed substantial increases in their rental yields, aligning with Magicbricks’ projections.

The report delineates that the demand for rental accommodations within the budgetary range of Rs 10,000 to Rs 30,000 per month predominates the market, commanding a 42 per cent share of the total demand.

Furthermore, the report furnishes a comprehensive breakdown of rental dynamics across major cities. Ahmedabad, for instance, witnessed a quarter-on-quarter demand growth of 14.3 per cent alongside a marginal supply increase of 0.1 per cent.

Despite a 6.2 per cent decrease in supply, Bengaluru witnessed a notable quarter-on-quarter demand surge of 15.0 per cent, coupled with a rent escalation of 4.4 per cent quarter-on-quarter and 23.7 per cent year-on-year.

Chennai experienced a substantial quarter-on-quarter demand growth of 24.9 per cent but contended with a steep supply decrease of 22.6 per cent.

Delhi observed a quarter-on-quarter demand growth of 14.0 per cent juxtaposed with a supply decrease of 2.7 per cent.

Other cities such as Greater Noida, Gurugram, Hyderabad, Kolkata, Mumbai, Navi Mumbai, Noida, Pune, and Thane also witnessed varying degrees of demand and supply fluctuations alongside rent escalations.

The comprehensive report by Magicbricks serves as a barometer of the evolving rental landscape across major Indian cities, shedding light on the multifaceted dynamics influencing rental trends.

As rental rates continue to surge, stakeholders within the real estate domain are poised to navigate the evolving market dynamics while leveraging insights gleaned from the report to inform strategic decisions and capitalize on emerging opportunities.

Home prices in India are likely to increase by 4-6 per cent this year but rising per capita income will support demand.

A real estate consultancy firm reported a 10% increase in the sales of luxury homes priced at Rs 4 crore and above during the quarter ending on March 31 compared to the previous year. According to CBRE’s ‘India Market Monitor Q1 2024’ report, 4,140 luxury homes were sold between January and March 2024, compared to 3,780 sold during the same period last year.

This growth trend has persisted for the past two years, with sales surging by 75% in 2023 to 12,935 units. Additionally, the share of luxury homes in total sales doubled to 4% in 2023 from 2% the previous year. At the end of March 2024, their share has risen to 5 per cent. Mumbai led in the March quarter by selling 1,330 luxury homes: 15 per cent higher than 1,150 units sold last year.

It was followed by Delhi National Capital Region (NCR) at 1,150 units and Hyderabad at 800 units. While Hyderabad saw a twofold jump in luxury home sales, demand for such properties in Delhi NCR fell from 1,880 units in the same quarter last year. Residential property sales across categories reached 85,000 units in January-March, growing 8 per cent year-on-year.

The largest sales were in the mid-end segment homes (priced between Rs 45 lakh to 1 crore) which compised 47 per cent share in total sales. It was followed by high-end (Rs 1 – 2 crore) and affordable projects (up to Rs 45 lakh). Luxury home sales ranked fifth. Pune, Mumbai, and Bangalore cumulatively accounted for about 65 per cent of the total sales. The report said the demand has also led developers to focus on luxury homes. In the March quarter, there was a 64 per cent increase in new launches of luxury segment units.

“The Indian luxury real estate sector demonstrates robust fundamentals for sustained expansion, underpinned by consistent increases in household income and consumer spending power,” said Anshuman Magazine, chairman and chief executive officer (India, South-East Asia, Middle East & Africa) at CBRE. “These factors are anticipated to cultivate a segment characterized by discerning buyers prioritising quality, financial prudence, and a desire for an elevated living experience.”