Delhi-NCR’s realty market booms with increased PE investment of $633 mn in H1 2024 – Money News

The H1 of 2024 has been a boon for the Indian real estate market, with Delhi-NCR securing the highest private equity investment of $633.3 million, as per a recent Cushman and Wakefield report. This investment stood out as a financial milestone and is attributed to the high demand for Grade A office spaces and luxury housing, reflecting Delhi-NCR’s rising stature in commercial and residential segments. Out of the total investment in Delhi-NCR, $483.6 million was directed into the office segment, while $149.6 million went to the residential.

Continuing the growth momentum in Q2 of 2024, the sector attracted $2.77 billion, propelling the total investment for the H1 of 2024 to a record-breaking $3.9 billion. The second quarter’s performance marks a 1.5x increase in comparison to the previous quarter and a substantial 39% growth year-on-year. This growing private equity investment reflects the growing and strengthened interest of investors in the sector.

Commenting on the same, Sandeep Chhillar, Founder and Chairman, of Landmark Group, says, “As Delhi-NCR’s real estate market spectates this tremendous growth across commercial and housing segments, the increasing demand for luxury housing and Grade A office spaces has catalyzed this process. The rising private equity investment in the sector further stimulates market sentiments, strengthening growing investor confidence. We see continued infrastructure upgradation and heightened business activity in and around the peripheries of NCR, which have been the biggest factors in catapulting the real estate demand in Gurugram for both luxury housing and commercial assets.”

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Delhi-NCR, particularly areas like Noida and Gurugram, has recorded a hike in sales volumes, with luxury properties seeing a boost. This growth is primarily driven by the demand for luxury housing and the premium amenities it offers, steady price appreciation steered by a growing buyer base, and improved infrastructure. On the commercial front, India’s office space market is set for record-breaking growth numbers with leasing across the top 8 cities anticipated to cross 80 million sq. ft. in 2024. This growth is navigated by new demand from multinational corporations for Grade A office spaces.

Prateek Tiwari, Managing Director of Prateek Group, says, “Buyers consistently look for luxury housing options that define their lifestyle and offer exceptional amenities at the same time. These preferences have led Delhi-NCR to grow in a flash, giving numerous options to them. This sustained interest of buyers and investors continues to boost the region’s growth, allowing developers to actively respond with new high-end projects.”

A combination of factors drives the real estate growth of Delhi-NCR. From improved infrastructure through new expressways and metro connectivity to upcoming developments like the Noida Internation Airport in Jewar, these developments have enhanced the region’s connectivity to nearby areas. This accessibility has welcomed a gamut of investment activity in the region welcoming investors and businesses both. Meanwhile, in Gurugram, the city’s growing corporate hub has brought an influx of high-income professionals which has created a strong demand for luxury homes and office spaces.

Dr. Gautam Kanodia, Founder of Kanodia Group and Kanodia Cement, says “The hike in PE investment during H1 2024 has bolstered the growth prospects of Delhi-NCR’s real estate market cementing its position as a preferred destination for luxury living and business locations both. Gurugram has been booming with luxury housing demand and we can anticipate a large-scale development in the coming years. The existing and proposed infrastructure advancement is propelling the demand for real estate in Delhi-NCR, especially in Gurugram and its emerging micro-markets. Hence, the evolving market dynamics, along with the surge in investors’ activity, boost Delh-NCR’s realty potential and bodes well for further development.”

Ashwani Kumar, Pyramid Infratech, says, “Gurugram has been prominently known for its high-rise condominiums, multinational corporations, and vibrant lifestyle. The city’s planned infra, its connectivity, and proximity to IGI Airport have made it a favorite location for homebuyers and businesses. All these factors together make Gurugram stand out from the rest of the areas, raising the demand for luxury living in the city.”

Therefore, at the core of this panoramic growth, rising luxury residential and commercial projects, together with substantial private equity investment, signal a brighter future for Delhi-NCR. As more and more investors are recognizing the region’s potential as evident in the report, the real estate sector can expect continued investment and long-term growth.

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