While Delhi- NCR has emerged as a dominant region in terms of the rising popularity of low-rise independent floors, Gurgaon takes centre stage in the NCR as a hottest destination for new launches of independent floors, mostly catering to upper mid and high-end consumers.
Industry statistics clearly show that independent floors are a dominant segment of residential real estate in Gurgaon. As many as seventy-four percent of total units launched in Gurgaon in the calendar year 2021 were independent floor units, catering to demand from higher-end consumers. According to JLL, 16,418 units were launched in the Delhi NCR, including 6850 independent floors units in Gurgaon, representing a further recovery of consumer confidence in the region’s residential market.
Catering to the growing demand for low-rise independent floors, the developers in Gurgaon actively launched new projects and units in this category. Leading developers had set the ball rolling for the launch of low-rise independent floors 2-3 years back. , More of such projects, according to JLL, will come to market to meet demand. Apart from independent floors, plots, and villa projects have also recorded a healthy momentum with around 2569 units launched in 2020 and 2021 across Delhi NCR.
|New Launches in Delhi NCR|
|Total new launches (high rise apartments + independent floors)||5964||16418|
|New launches of independent floors||1699||6850|
|% of independent floors in new launches||28%||42%|
|New Launches in Gurgaon|
|Total new launches (high rise apartments + independent floors)||3560||9232|
|New launches of independent floors||1699||6850|
|% of independent floors in new Launches||48%||74%|
There are several key factors responsible for developers taking to independent floors
and plotted developments. These include lower capital investment, fluid cash flows amidst speedy sales, low
project execution risk,faster exits from investment and quicker development turnaround.
The prime residential corridors in Gurgaon, where independent floors have been launched in the last two years, include Golf Course Extension Road, Dwarka Expressway (Sector 37D), New Gurgaon (Sector 81, 89, 92), Sector 73, DLF City Phase II, III, and IV and Sohna.
The price range of independent floors in different micro markets in Gurgaon:
|Micro Market||Price range (INR/Sq ft) on super built-up area|
|New Gurgaon (Sector 81, 89, and 92)||5,500-7,250|
|Dwarka Expressway (Sector 37D)||6,500|
|Golf Course Extension Road||9,500-11,250|
|DLF Phase II, III, IV||16,000-18,500|
|SPR (Sector 73)||12,000-13,200|
Majority of the independent floors launched in Gurgaon cater to the upper mid and high-end categories. The average size of these units is around 1900 sq ft. According to Dr. Samantak Das, Chief Economist and Head, Research and REIS, India, JLL. the domestic economic recovery and the consequent improvement in market sentiment in the residential segment, with the return of buyers in the market, instilled the confidence in developers to strategically launch projects across Delhi NCR in 2021. More buyers now give preference to bigger homes amid the rise of work from Home, hybrid culture, and e-schooling. The dominant configuration in these upcoming independent floor projects is 3BHK and 4BHK, with the additional room now becoming a good-to-have need from buyers and developers responding by developing such flexible home types
The major micro-markets where plots and villas were launched across Delhi NCR include Greater Faridabad (Sector 77, 81,83,84), Pari Chowk in Noida, Dwarka Expressway, Sector 82, Sector 88B, and Sector 70 A in Gurgaon.
Home buyers are increasingly giving preference to plotted developments as these residential developments provide the benefit of flexibility and customization, facilitating the construction of houses as per the choice and preference of prospective buyers. In certain cases, developers also offer services for construction to create bespoke houses for the buyers. In terms of demand, plotted developments and independent floors are gaining significant traction as buyers are increasingly looking at staying in low-rise independent floors which by design are low-density developments and are now mirroring gated condominium communities with more open spaces, according to Manish Aggarwal, Managing Director, North & East India, JLL
Looking from the perspective of consumers, low-rise floors give more independence, a healthy and safe lifestyle, coupled with vast lifestyle amenities in a gated complex. The amenities offered in independent floors include a clubhouse, gymnasium, children’s play area, swimming pool, jogging tracks, etc. There is a greater trust of home buyers in independent floors as they take less time for completion, facilitating faster deliverly an in turn reducing the development risk. faced by home buyers.
The all-time low home loan rates, coupled with incentives and discounts offered by the developers, amid improved buyer confidence, augur well for the residential sector. The buyers’ preference towards plotted developments and independent floors is expected to be reflected in a significant pipeline of plotted developments and independent floors in the next year owing to positive demand and supply dynamics. As this class of property provides top amenities within a gated complex, prospective buyers and investors are simply lapping up these offerings, with tremendous response to new launches of low-rise independent floors.