The spike in demand is being encouraged by the making of new infrastructure, which is motivating real estate developers from all over the country to compete for land parcels in the region of the national capital.
The National Capital Region (NCR) has long been one of the most desirable locations in the country for property acquisition by the leading real estate developers in the country. The cities of NCR's rapid growth towards the suburbs has been thriving, resulting in the creation of new residential corridors, commercial hubs and office areas. This expansion was done in a small duration. Developers from all over the country have crowded into the area because of its closeness to the nation's capital, its increasing physical and social infrastructure, and the growing need for housing and other services. Many developers in Mumbai and Bangalore are considering investing in the northern region of INDIA.
The availability of institutional money and partnerships with international businesses have been beneficial to the funding of Indian developers. The majority of sales include either governmental entities or developers with high outstanding debt as the seller. In 2022, more than 740 acres of land were sold as part of over 20 separate deals with a total value of 7,000 crores Indian rupees (USD 875 million). The number of big land sales in 2022 was topped by the city of Gurgaon, with 12 registered, followed by the city of Noida, with 6 major transactions recorded. The acquisition of land for residential development was the most common purpose, accounting for 15 of the 23 transactions, with a combined area of around 665 acres. This land will be used for residential construction. The total land area that developers have acquired is 744 acres (Delhi NCR, 2022), as per the report by JLL & REIS.
More and More Residential projectsï¿½
Housing has become a tough task in Delhi due to the city's substantial population expansion, mostly due to the increased number of migrants. The city started expanding laterally outwards into its outskirts, with Gurgaon and Noida taking the lead in terms of the residential real estate sector. Over the past two decades, Gurgaon and Noida have emerged as the primary residential centres in the region. However, in 2013, a revision to Delhi's master plan removed several of the city's height limitations, making it possible for developers to construct skyscrapers with greater height. After some time, the city started to see the construction of multi-story flats. This was made possible by the development of projects in the city by developers such as DLF, Godrej Properties, Raheja, The Trump Organization and more.
The necessity for land banks has skyrocketed as a result of the ever-increasing demand for housing across the entirety of the NCR as well as the efforts of relevant state governments to promote new housing projects by encouraging developer involvement via various forms of financial inducement. Since 2014, the number of homes sold in the NCR's top five cities reached its most lavish point in 2022, with 38,356 units changing hands. The most significant land purchases were made by national companies like Godrej and Max Estates, in addition to locally based developers such as Signature and M3M. Established developers who previously favoured a concept of cooperative development have recently altered their preference to a strategy in which they acquire the property outright.
The area near and around NCR is picking up the pace.
Township development is shifting away from the submarkets of Gurgaon and Noida in the centre of the National Capital Region (NCR) and instead is looking towards the corridors of Panipat, Sonipat, and Bahadurgarh. Notable transactions include M3M purchasing around 350 acres in Panipat and Godrej Properties purchasing more than 48 acres in Sonipat. All of these land purchases are to construct residential communities.
A significant increase in the number of transactions is anticipated to take place in 2023 as a result of the rising demand for housing, the expansion of landbanks by developers, and the injection of cash by institutional investors. Additional demand will be stimulated as a result of upcoming infrastructure expansions in the region, such as the Dwarka Expressway, Noida International Airport, Delhi-Mumbai Industrial Corridor, and the Delhi Meerut Rapid Rail Transit System.