Rise of Premium & Luxury Homes

Post-Covid, Gurgaon’s residential real estate is witnessing its transition towards premium and luxury housing, with the city’s share of premium and luxury homes, going up from 24 percent in the pre-covid year of 2019 to 30 percent in post-covid 2021. In 2020, when the Corona pandemic first struck, the share was 25 percent. by Team Torbit

Last year, as many as 15590 residential units priced above Rs 80 lakh, were sold, compared to 13250 units sold in 2019. The city also witnessed uptick in mid-priced homes (Rs 40 lakh-80 lakh). Compared to 16 percent share of mid-priced homes in overall home sales in 2019 and 23 percent share in 2020, the share in 2021 further went up to 27 percent.

Percentage Share of Home Sales Across Budgets

The sale of premium and luxury homes in Gurgaon has been rising steadily post-pandemic. One of the defining features of premium and luxury homes which witnessed demand surge, is their larger size, which has been the new imperative because of the WFH culture. Low interest rates, developer discounts and offers, and homebuyers’ preference for state-of-the-art amenities further contributed to this trend.

 Gurugram Supply Trends

Following the new consumer demand, developers began increasing the supply of homes priced above Rs 80 lakh. According to Anarock data, of 18,540 units launched in Gurgaon in 2021, about 33 percent units (numbering 6,040 units) were priced above Rs 80 lakh.

In 2019, 4,080 units out of a total of 19,350 (21%) launched in Gurgaon were in the premium and luxury categories, denoting an increase of 48% in the supply of the homes priced above Rs 80 lakh in 2021 as against 2019.

Percentage Share of Total New Launches Across Budgets

Source: Anarock Research

Total Units Launched in Gurgaon

The rise of premium and luxury homes has been at the cost of affordable homes, both in terms of sales and new launches. As against 60 percent share in 2019 and 52 percent in 2022, it fell to 42 percent in 2021. Developers considerably reduced the supply of affordable homes – from 12,310 units in 2019 to 7,550 units in 2021, indicating a drop of 39%. The share of affordable homes in the total new supply thus dropped from 64% in 2019 to 41% in 2021.