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The Hindu
3 days ago
- Business
- The Hindu
Gurugram beats Mumbai in luxury housing
The seeds of urbanisation that were sown in the sleepy town of Gurgaon (now Gurugram) in the early 90s are now bearing fruit. Today, Gurugram, located in the Delhi National Capital Region (NCR), has become the abode of top corporations due to its affordable commercial real estate and high-quality infrastructure, which compares favourably to Mumbai's commercial hubs. It has now rivalled the maximum city in terms of luxury residential real estate. Legend had it that in those days, Gurugram farmers sold their land to real estate developers and bought Ferraris. Today, that land is minting gold. What started as a hub of call centres and malls, has now become the nerve centre of the economy, housing top corporates like Air India, IndiGo, Maruti, JSW MG Motors, and Hyundai, to name a few. Gurugram has even dwarfed Delhi in terms of real estate pricing and quality of life, prompting many to relocate. Now, the Haryana city has emerged as a challenger to Mumbai and, in fact, has surpassed the western metropolis in terms of the number of luxury homes sold in a year, though India's commercial capital still rules in per rate and in transaction ticket size. 'Gurugram has become the abode of luxury homes priced above ₹5 crore each. The average size of Gurugram apartments has increased from 1,800 to 2,600 and with this, the ticket size of apartments has crossed ₹5 crore, making it the top destination for luxury homes,' said Samir Jasuja, MD, PropEquity, a real estate analytics firm that has conducted research on the trend. In 2024, about 79,000 luxury homes were sold in Gurugram, which is about 50% of all luxury homes sold in India. In Mumbai, about 33,000 units of luxury homes were sold that year, according to PropEquity data. Prefer larger homes In Gurugram — like in most of North India — people prefer larger homes, and thus the price per unit has gone up, while in Mumbai, due to high property prices, local developers offer apartments of smaller sizes, which is the reason behind Gurugram stealing the show. The people who are buying luxury homes in Gurugram include NRIs, HNIs, investors and end-users like CXOs working in top Indian and multinational companies. 'Employment generation, proximity to Delhi airport, great infrastructure and superior construction have led to demand for luxury homes in Gurugram, leading to price escalation,' Mr. Jasuja said. He said the demand momentum would continue as people are getting richer and seeking high-quality living. For example, DLF Ltd. — India's top real estate developer,responsible for modernising and urbanising Gurugram — sold 1,100 units in its DLF Camellias project, which is priced over ₹9 crore each, in one week recently. In tune with the demand, almost all developers have now shifted their focus to luxury homes, as the return is far better than in other segments of housing. The price appreciation in Gurugram has been phenomenal compared to Mumbai, which is a landlocked city. As per PropEquity data between January 2020 and April 2025, the property prices in Gurugram appreciated by 113.26%, while it was only 42.30% in Mumbai in the same period. In the period between January 2015 and April 2025, property prices in Gurugram appreciated 181.72%, while it was a mere 30.42% in Mumbai. In 2020, the weighted average price per was ₹10,090 in Gurugram, while it was ₹25,981 per sq ft in Mumbai. In 2021, it dropped to ₹8,756 per in Gurugram, while it increased to ₹27,417 per in Mumbai. In 2022, 2023, 2024 and 2025, the weighted average price increased to ₹12,802, ₹15,294, ₹17,733, and ₹21,518 per respectively, in Gurugram. While in Mumbai, it rose to ₹29,793, ₹32,834, ₹34,282 and ₹36,970 per respectively. Gurugram might have stolen the thunder in terms of the average size of luxury apartments, but Mumbai still commands the highest price in terms of per rate. In Gurugram, the highest price was about ₹1,90,000 per whereas in Mumbai, it was ₹2,50,000 per 'These are one of the transactions, but in general, Gurugram has arrived,' Jasuja said. In 2024, the demand for luxury homes in Gurugram increased 66% to nearly ₹1.07 lakh crore as per PropEquity's estimates. Areas like Golf Course Road are witnessing a surge in ultra-luxury housing as the city, which has transformed into a major corporate hub, is attracting professionals from all over, including Mumbai. P. Pandey, a long-time Mumbai resident, shifted base to Gurugram post-COVID for work. So did F. D'Souza. Both are seeking premium living, fuelling the demand for luxury homes. Santhosh Kumar, vice chairman of ANAROCK Group, said Gurugram has undoubtedly seen a surge in activity in ultra-luxury properties, with both demand and new supply seeing a significant jump over the last few years. As per Anarock Research, back in Q1 2023, as many as 1,920 units were launched in the ultra-luxury category priced at ₹2.5 crore in the city, while in Q1 2025, the new supply in this category increased to 7,610 units – a whopping 296% jump in the last two years, he said. Meanwhile, in mainland Mumbai, the new supply of ultra-luxury homes in Q1 2023 exceeded Gurugram's back then, with approximately 2,110 units. However, in Q1 2025, new supply in this budget category was nearly 4,900 units – at least 55% lower than in Gurugram, he added. 'This is essentially because post the pandemic, we are seeing high demand for luxury homes, and developers who previously refrained from launching projects in this category are now coming forward,' Kumar said. Rise in demand He said due to steadily rising demand, new supply in the ultra-luxury category by large and listed developers has increased substantially. Developers are seen cashing in on the rising demand. One of the major beneficiaries of the changing trend is real estate company Signature Global (India), which has a large presence in Gurugram. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd., said only in the last five years has the city emerged as the epicentre of premium housing. Its status as a corporate hub has led to significant internal migration from various parts of Delhi NCR and neighbouring states, thereby fuelling sustained demand for quality housing, he said. Key hotspots such as Dwarka Expressway, Southern Peripheral Road, Sohna, and South Gurugram have witnessed a steady rise in property prices. This growth has been largely driven by rapid infrastructure development, improved connectivity across Delhi-NCR, and a growing demand for high-quality residential spaces from both end-users and investors, Aggarwal said. Mumbai's enduring appeal Meanwhile, Mumbai's developer community does not accept Gurugram's ascent. According to Manju Yagnik, Vice Chairperson, Nahar Group, and Senior Vice President, NAREDCO Maharashtra, while Gurugram has certainly seen a surge in the number of luxury housing transactions, 'Mumbai remains unequivocally the crown jewel of India's luxury real estate market — not just in terms of legacy, but also in value.' 'In 2023 alone, Mumbai recorded luxury home sales worth over ₹38,000 crore, with average prices in prime locations like South Mumbai, BKC, and Juhu ranging from ₹85,000 to ₹1.5 lakh per — nearly three to five times higher than luxury rates in Gurugram,' she said. 'What sets Mumbai apart is not just the price tag but the deep-rooted aspirational value, global investor interest, and scarcity-driven demand. It's a land-constrained city with a coastline, heritage zones, and limited vertical expansion, which continues to drive price appreciation,' she said. 'Even though Gurugram may have surpassed Mumbai in transaction numbers temporarily, Mumbai continues to lead in total value, per square foot pricing, and long-term capital appreciation — making it the true epicentre of India's luxury real estate landscape,' she said. Amit Vakharia, VP Projects, Ashar Group, known for the redevelopment of late actor Dilip Kumar's bungalow at Pali Hill in Mumbai, said that though the number of luxury housing transactions had gone up in Gurugram, Mumbai still 'remains and retains the gold standard in value, prestige, and per-square-foot supremacy'. 'With luxury residences in Malabar Hill, Bandra, and Worli often selling for over ₹1 lakh per sq. ft., and individual transactions ranging from ₹50 crore to over ₹200 crore, the city reflects a market led by HNIs and UHNIs who seek branded and well-located addresses,' he said. He added that Mumbai offered more than homes; it delivers a legacy of heritage, unmatched connectivity, panoramic sea views, and direct access to India's financial capital. 'As other luxury landscapes evolve, Mumbai continues to set the benchmark for value, aspiration, and investment confidence in Indian luxury real estate,' he said. MUMBAI Leena Gandhi Tewari, chairperson, USV Ltd, has reported bought two luxury duplex flats for ₹639 crore in Worli. The duplexes, spreading across four floors, cover a total area of 22,572 The price works out to ₹2.83 lakh per making it perhaps the costliest residential deal in India. Tanya Dubas, Executive Director of Godrej Industries Group and daughter of Adi Godrej, through Shaula Real Estates Private Ltd, has purchased a duplex apartment for ₹225.76 crore in Worli. With a total built-up area of 11,485 sq ft, the per prices work out to ₹1.97 lakh. In October 2024, Shreegopal Kabra, promoter of RR Kabel and his family, purchased two luxury apartments in Worli for ₹198 crore. The apartments spread over 13,809 sq ft, translating into a price of ₹1,43,000 a
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Business Standard
3 days ago
- Business
- Business Standard
Home loan interest must drop to 6% to revive sales: NAREDCO president
Realtors' body NAREDCO president G Hari Babu on Friday demanded that interest on home loans should come down to around 6 per cent to boost sales that have fallen during the first six months of this year across the top seven cities. He attributed the fall in housing sales to excess supply, sharp rises in prices of residential properties and global economic uncertainties. Real estate data analytics firm PropEquity has reported a 19 per cent drop in sales during the current April-June period and a 23 per cent fall in the preceding quarter across 9 major cities. Property consultant Anarock has estimated a 20 per cent fall in the latest June quarter in the top 7 cities. When asked about the reason for this fall, Hari Babu said, "Housing prices have increased significantly in the last three years, affecting the affordability of prospective customers." Salaries have not increased so much that it can match the appreciation in the housing prices, Hari Babu said on the sidelines of a conference organised by the association's women wing, NAREDCO-MAHI. That apart, the NAREDCO president said there is an excess supply in many cities, including Hyderabad. He pointed out that homebuyers' sentiments have been affected due to global political and economic uncertainties. Hari Babu said the demand is likely to remain subdued even in the July-September quarter. Asked about the impact of the RBI decision to reduce repo rate by 100 basis points since February, the Naredco president said it has definitely provided some relief to customers as EMIs (Equated Monthly Installments) would come down to 7.5-8 per cent. "Interest rates on home loans should come down to around 6 per cent to boost demand," he said. The NAREDCO president also pitched for a new policy for the redevelopment of slums across Tier I-II cities to bring more land in the market for building housing projects. "Land cost has gone up sharply post-COVID pandemic," he said, adding that high land cost has made it difficult for developers to build affordable homes. As per PropEquity data, housing sales are expected to decline by 19 per cent to 94,864 units in the second quarter of this calendar year from 1,16,432 units in the year-ago period. According to Anarock, housing prices rose 11 per cent annually in the April-June quarter across the top seven cities, leading to a 20 per cent fall in sales. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Mint
4 days ago
- Business
- Mint
‘Homebuyers in wait-and-watch mode': Fewer Indians now buying homes as prices soar, says report
The sale of houses in the country dipped 20% year-on-year in the April-June quarter, mainly due to an 11% jump in prices and geopolitical tensions, Anarock said on Thursday. According to data released by the real estate consultancy, the housing sales across seven major cities dipped to 96,285 units during the quarter from 1,20,335 units in the same quarter last year. Earlier this week, another realty platform, PropEquity, estimated a 19% fall in sales this quarter. Anarock's data showed that the sales declined in six out of seven top cities - Delhi-NCR, Mumbai Metropolitan Region, Bengaluru, Hyderabad, Pune and Kolkata. The highest dip of 27% was witnessed in Pune and Hyderabad. The demand increased only in Chennai. 'The second quarter of 2025 was a rollercoaster for the Indian housing market, rocked by major military actions at home and abroad,' said Anarock Chairman Anuj Puri. He added, 'The war-like climate pushed homebuyers into wait-and-watch mode, compounding the impact of soaring property prices over the past two years.' Not just buyers but the developers also seem to have taken a cautious stance with the new launches falling 16% this quarter as compared to last year. The sharpest dip in launches was witnessed in Mumbai at 36%. The launches grew in Delhi NCR, Chennai and Kolkata, with the highest at 65% in Tamil Nadu's capital. Puri, however, added that the RBI's larger-than-expected repo rate cut of 50 basis points, along with easing domestic tensions, the buyer sentiment are rebounding. 'With home loan rates softening and developers largely holding prices steady, the stage is set for a potential upswing in housing sales in the coming quarters,' he said. On Thursday, the central bank suggested that all banks should bring down their lending rates for the speedy transmission of the policy rate. An article published in the RBI's June Bulletin stressed that the financial conditions remained conducive to facilitating an efficient transmission of rate cuts.
India Today
5 days ago
- Business
- India Today
Roti, kapda, but no makaan? The disappearing dream of affordable housing
India is running out of affordable houses. In city after city, homes once within reach of the country's vast salaried middle class—typically priced below Rs 1 crore—are quietly disappearing. And with them, the idea of ownership is slipping away for millions of Indians who still believe in that first decades, a small apartment in a reasonably connected neighbourhood sat at the heart of the urban middle-class dream. Something affordable with a bit of planning. Close enough to work, stable enough to raise a that dream is fading. Across India's top cities, the supply of affordable and mid-income homes has dropped sharply. According to data from real estate analytics firm PropEquity, inventory in this segment fell from around 3.1 lakh units in 2022 to under 2 lakh in 2024. That's a 36% drop in just two years. In 2024 alone, the number of such homes dropped by 30% compared to 2023. Some of the steepest declines have come in already unaffordable markets. Hyderabad has lost nearly 70% of its affordable housing supply. In Mumbai, the drop is 60%. In Delhi-NCR, supply has halved. The numbers are particularly stark in NCR, which added only 2,672 homes under Rs 1 crore in 2024 — just 6% of the city's total new supply. advertisement What looks like a slowdown is actually a shift in priorities. Developers are moving up market, focusing on premium launches, where margins are higher and buyers are less sensitive to price. Houses priced above Rs 1 crore have surged by nearly 48% in the same period. In Bengaluru and NCR, such launches have nearly HITS A WALLRising costs are behind this shift. Land has become more expensive. Construction inputs, from steel to cement, remain elevated. Delays in approvals and expensive borrowing have eroded already-thin margins. For many builders, constructing homes priced between Rs 50 and Rs 90 lakh no longer makes sense.'First, the margins have become quite thin. Inflation has risen significantly and land acquisition costs have also increased,' said Sahil Verma, COO of Shray Projects, a real estate services company based in New Delhi. 'Additionally there is input inflation, which is basically a steel or cement cost. Compliance is also increased, so that also adds to the cost.''Second, the approval process generally for affordable projects is very slow,' he added. 'Government housing schemes and related initiatives often face delays in clearances.'Nowhere is the squeeze more visible than in Mumbai. According to a recent CII–Knight Frank study, the average launch price of a sub-30-square-metre unit (approximately 320 square feet) in the Mumbai Metropolitan Region rose from Rs 17 lakh in 2019 to Rs 26 lakh in 2024, marking a 55% the top nine cities, housing prices have risen by 9% year-on-year in FY25, according to PropEquity. In Kolkata, prices jumped 29%, followed by Thane (17%) and Bengaluru (15%). Pune crossed the Rs 10,000 per sq. ft mark for the first time. Chennai, despite being the most affordable among major metros, saw prices climb to Rs 7,989 per sq. ft. Only Mumbai and Navi Mumbai recorded a slight decline of 3%.Over a two-year period, prices have risen 18% nationally. In Bengaluru, the increase was 44%. For families in the economically weaker section (EWS), with annual incomes under Rs 3 lakh, these jumps make home loans nearly impossible. In most cases, EMIs now breach lending thresholds set by was once an entry-level home within city limits is now a compromise far beyond them. Prices have crept outward, unit sizes have shrunk, and infrastructure hasn't kept pace. Even in the distant suburbs, many middle-income buyers are now priced out.'Affordable housing today must go beyond traditional definitions of size or cost,' said G Hari Babu, National President of the National Real Estate Development Council (NAREDCO). 'In urban India, especially in a region like NCR, affordability should be linked to the buyer's income, the location's connectivity to work hubs, and the overall cost of ownership.'advertisement'Now affordability isn't just about price, it's beyond that,' said Verma. 'Nowadays it's all about what surrounds your home. If infrastructure is well developed, are there good schools, hospitals and connectivity to public vehicles?'NO WAY OUTThe impact goes well beyond personal disappointment. As affordable housing disappears, more families are being forced into long-term renting. But rents, too, have climbed sharply over the past few the middle class, this creates a painful limbo: priced out of ownership and stretched thin by monthly outgo. And the pressure is showing up in the numbers. According to Anuj Puri, Chairman of property consultant firm ANAROCK Group, urban India faces a shortfall of nearly 1 crore affordable housing units. That number could rise to 2.5 crore by 2030. A separate estimate by CII–Knight Frank places the cumulative shortage and demand at over 3 crore units by decade's end, with 95% of it in the affordable as the overall market bounced back post-Covid, housing under Rs 40 lakh — typically classified as affordable — didn't. ANAROCK data shows this segment's share of total sales fell from 38% in 2019 to just 18% in 2024. Its share of new supply dropped from 40% to 16%.And yet, demand hasn't disappeared. It's still visible in the vanishing inventory. Between Q1 2024 and Q1 2025, unsold affordable stock dropped by 19%, from 1.4 lakh units to 1.13 lakh. Where houses are still available, end-users are buying. But they're running out of options.'Smaller developers, who have become the backbone of affordable housing, are struggling with expensive debt and limited financing options,' Puri said. 'They need direct support, not just the homebuyers.'OUT OF REACHFor many middle-class families, owning a home still matters. But it's slipping further out of reach.'Middle-class buyers remain in the market but are exercising caution, delaying their purchases in response to current market conditions,' said Pyush Lohia, Director of Lohia Worldspace. 'The increase in home loan interest rates and inflation-driven price hikes have heightened price sensitivity among potential homeowners, leading them to adopt a more strategic and intentional approach.'advertisementThere is no shortage of interest. What's missing is supply. 'Unquestionably, there is pent-up demand for affordable and mid-income housing. However, there is very little available,' Lohia added. 'Getting into this sector is the challenge. The increasing cost of land and construction is putting upward pressure on the price to the end-user, making it hard for developers to offer home prices in the affordable basket.''Land is the biggest bottleneck,' said Verma. 'In cities like Gurugram and Mumbai, land often accounts for 30 to 40% of project costs and that makes it totally impossible to deliver a unit under Rs 50–60 lakh without compromising on quality or location.'Between 2019 and 2024, the average launch price of homes under 30 square metres (approximately 322.9 square feet) rose at an 8% annual rate — nearly twice the pace of mid-sized homes. Incomes haven't kept up. Loan eligibility remains weak for low-income households. Many now find themselves permanently shut out of the housing ladder. According to the CII–Knight Frank study from December 2024, the share of affordable housing in total launches dropped from 52% in 2020 to just 23% in 2024. And when smaller units are launched, they're often priced far out of reach for the middle class.'Developers are gradually reducing their focus on affordable housing as the overall project economics have become increasingly challenging,' said Hari IMBALANCEAn alarming tilt toward luxury is hollowing out India's affordable housing market.'There is a growing divergence in supply, with a notable skew towards high-end and premium housing units,' said Lohia. 'If left unchecked, this trend could lead to a structural imbalance, where the supply of luxury housing far exceeds demand, while affordable and mid-income segments are neglected.''That's a lot of economic misalignment that we're seeing,' said Verma. 'The rising costs, stagnant entry-level incomes, and regulatory delays have made it all unattractive for developers.'Meanwhile, the expectations of buyers have also shifted. 'Now they don't just want walls and buildings. They want a proper housing unit where they have a lifestyle to live in, and they also don't want to be flung to far locations,' he a troubling scenario. By 2030, India will have at least 71 cities with populations over 10 lakh, including eight megacities, according to the CII–Knight Frank study. Most of the demand in these cities — nearly 2.1 crore homes — will be in the affordable NEEDS TO CHANGETurning this around will require more than good intentions. Builders say the economics simply don't work any more, not unless something shifts on the policy side.'Land and construction costs are a major barrier to affordable housing today,' Hari Babu said. "Policy price caps for affordable housing haven't been revised in years, leading to a wide gap between cost and selling price. Unless there is a comprehensive effort to revise pricing norms, offer faster clearances, and reintroduce financial incentives, many developers will continue to find affordable housing unviable.''I think one is, of course, the faster approvals in single-window clearances for affordable and mid-income housing,' said Verma. 'If the government is able to provide land-related incentives, such as unlocking government land at subsidised rates for high-density housing, that is second.''And lastly, tax incentives for private developers,' he added. 'GST relief on construction or incentives tied to affordability metrics — for example, carpet area or location proximity — can benefit the segment, being impactful and commercially sustainable.'Developers are not alone in calling for course correction.'Prices of construction materials have surged, land costs are rising, and compliance burdens vary wildly,' said Shekhar G Patel, President of the Confederation of Real Estate Developers' Associations of India (CREDAI).'A unit once priced at Rs 45 lakh in 2017 now costs upwards of Rs 85 lakh in many cities. The current price cap is outdated and disconnected from ground realities,' Patel argues that affordability should be redefined based on size — 60 square metres (around 645 square feet) in metros, 90 square metres (970 square feet) in non-metros — to reflect real market conditions. He also calls for GST cuts, standardised stamp duties, faster approvals, and credit guarantees for buyers.'These reforms are essential to bridging the growing gap,' he said, 'and keeping affordable housing central to India's urban growth story.'For now, though, that gap remains all too real. Prices have surged, supply has thinned, and policy hasn't kept pace. Owning a home was once the beginning of a stable life. Now, for many, it's a finish line they may never reach. The dream still lives on, but the space to realise it is shrinking every is part one of our two-part series on India's affordable housing crisis. In part two, we will look at how it's leaving households stuck in a limbo as they stretch budgets, delay decisions and run out of choices.- Ends
India Gazette
22-06-2025
- Business
- India Gazette
Housing sales in top cities fall below 1 lakh unit, first time in 14 quarters: PropEquity report
New Delhi [India], June 22 (ANI): Housing sales in India's top cities in Q2 2025 (April-June) fell below one lakh unit mark for the first time since Q3-2021 while supply remained below this threshold for the fourth consecutive quarter as per a report. Sales fell by 19 per cent on year-on-year basis to 94,864 units while supply fell by 30 per cent on year-on-year to 82,027 units in the April-June period of 2025, according to a report by NSE-listed real estate data analytics firm PropEquity. Housing sales stood at 116,432 units and supply stood at 117,208 units in April-June period of 2024. According to the report, housing sales fell year-on-year in 7 out of the 9 cities with Mumbai and Thane witnessing the sharpest fall at 34 per cent each while Delhi-NCR at 16 per cent and Chennai at 9 per cent were the only two cities that saw a rise in sales in April-June of 2025. Similarly, housing supply fell in six out of the nine cities with Mumbai recording the sharpest fall at 61 per cent while three cities saw rise in supply, namely Delhi NCR at 37 per cent, Hyderabad at 19 per cent and Chennai at 6 per cent in April-June of 2025. Samir Jasuja, Founder and CEO, PropEquity said, 'This is for the first time since Q3 2021 (July-September) that housing sales have fallen below 1 lakh unit mark. Supply, too, has stayed below 1 lakh unit mark for the fourth consecutive quarter. There has been a decline in both sales and supply on Q-o-Q basis in Mumbai, Bengaluru and Navi Mumbai as these cities recorded their high in 2023 and 2024, and are now stabilising to their normal pace.' 'Delhi-NCR has witnessed the maximum growth in this quarter owing to rise in supply in Ghaziabad and Greater Noida.' According to the report, housing sales in top 9 cities fell by 10 per cent while supply rose by 2 per cent on quarter-on-quarter basis. While Chennai, Hyderabad, Kolkata, Pune and Delhi-NCR saw a rise in supply, the sales rose in Chennai, Hyderabad, Kolkata and Delhi-NCR. (ANI)
