Growing luxury realty sector of Delhi
New Delhi- According to real estate consultants and market analysts, luxury realty sector had remained constant in the first two quarters of 2012, but picked up momentum after the third quarter.
Projects with price tags of Rs 5 crore and more are listed under luxury projects in Delhi and NCR region while in Mumbai, the minimum price of luxury projects is Rs 10 crore.
The Jan-Mar 2012 quarter observed a 68 percent fall in the absorption of luxury units compared to the same quarter in 2011. There was 22 percent fall in the Apr-Jun 2012 quarter followed by mere three percent in the July-Sept 2012 quarter, revealed data from Propequity, a real estate advisory and consulting firm.
According to Cushman and Wakefield, a global consultancy firm, luxury projects of Mumbai witnessed an average price appreciation of three to seven percent. But North and Northeast areas of Mumbai, such as Powai, Bandra and Juhu, were an exception, as they saw 21-29 percent appreciation in 2012.
High-end residential units in Mumbai, which were priced over Rs 3 crore, observed 57 percent decline in residential absorption in the Q1 of 2012, 33 percent decline in Q2 and 15 percent decline in Q3.
The pick up in the third quarter of 2012 is expected to be due to buyers giving up waiting for the prices to come down and festive season that started in September.
Noida real estate witnessed a 76 percent decline in the number of units absorbed in Q1, priced over Rs 5 crore while there was a 11 percent rise in demand in Q2. Surprisingly in the third quarter, there was a 115 percent increase in absorption of luxury residential units.
Around 140 units were launched in Q1 priced over Rs 5 crore, 100 units in Q2 and 87 units in Q3. The units launched in the second quarter got absorbed in the third quarter leading to an absorption rate of 160 percent in the third quarter, against 58 per cent increase in the second quarter and a decline of three per cent in the first.
Another reason for high absorption rate could be because the construction in Greater Noida was halted in July 2011 on the Allahabad High Court order. This paved way for increase in sales all over Noida.
On an estimate, there are minimum 3,000 units with a price tag of over Rs 5 crore in Gurgaon. As per Cushman and Wakefield data, luxury real estate market of Gurgaon observed 35 to 42 percent value appreciation in 2012. The city witnessed 30 percent rise in absorption rate in Q1, 22 percent rise in Q2 and 29 percent in Q3.
The economic slowdown cannot easily effect Gurgaon market and especially the luxury and super-luxury segments of Gurgaon. Market analysts estimate that every month Rs 200 crore enters the Gurgaon market even though real estate rates are high.
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[...] Growing luxury realty sector of Delhi, Mumbai [...]
[...] Growing luxury realty sector of Delhi [...]
[...] Growing luxury realty sector of Delhi, Mumbai [...]