According to a report by Savills India, the 2024 year witnessed a 55% price appreciation for under-construction properties in India. This price appreciation demonstrated a strong demand base. This move sends positive sentiment in the real estate market.
The report says, “Gurugram and Mumbai led the surge in under-construction property values, with increases of up to 55% and 10%, respectively.” Buyers showed their interest in investing in under-construction properties due to the influx of new projects, featuring quality specifications, high-end amenities, and staggered payment plans. In addition, an average increase of up to 25% price appreciation was also registered in ready-to-move properties across prime cities in 2024.
A recent surge in residential market and capital values has motivated buyers to buy under-construction properties. The recent decision of the Reserve Bank of India’s recent decision to keep interest rates unchanged also boosted buyers’ purchasing decision.
Shveta Jain, MD, Residential Services, Savills India believes fast economic growth, amenity-rich properties, new launch projects, and flexible payment plans are major factors behind the rapid sales of luxury homes.
“The surge in luxury home sales in 2024 has been driven by several key factors, including robust economic growth and a growing appetite for exclusive, amenity-rich properties that align with modern lifestyles. The increase in new launches with high-end amenities and flexible payment options reflects the evolving preferences of buyers seeking quality and convenience,” says Jain.
“This upward trend underscores the strong fundamentals of the luxury residential market, bolstered by positive buyer sentiment and stable interest rates,” she added.
Capital Value Surge in Noida’s Completed Properties
The average capital values of Noida-based finished and under-construction properties in Noida’s micro markets amplified 1%-24% on a YOY basis. The micro markets of Noida-Greater Noida Expressway and Noida registered a 24% YOY surge in capital value for completed properties. Even, the value of rental value in the micro markets of Noida and Sector 150 recorded 16% and 12% YOY increase.
Like Noida and Gurugram, Bengaluru also witnessed the growth of premium residential market witnessed in under-construction projects.