GETTING USED TO THE GOOD LIFE
For all the positives that can be highlighted about Gurgaon’s luxury homes market, the fact is that the capital values appre- ciation trend in Gurgaon has in fact slowed down considerably. From a remarkable appreciation high of 17.8% year-on-year in 2011- 2012, the trend tapered down drastically to 3.7% yearon-year in 2012-2013 and declined further to 1.1% year-on-year in 2013-2014.
At the current point in 2015, luxury capital value appreciation in Gurgaon remains at this point. Capital values for luxury apartments average at around ₹ 11,425 per sq ft, though this figure applies only to actively selling projects and is not representative of individual projects which are sold out. Capital values three years ago ranged between ₹ 10,900 to ₹ 11,300 sq ft.
Though there is not much to be currently said for Gurgaon in terms of ROI based on capital values growth, demand for luxury homes remains healthy. From our current market readings, buyers are not looking so much at appreciation as on the opportunity to secure luxury homes in Delhi NCR’s most glamourous, best- connected business hub.
Also, a significant amount of the demand for luxury homes in Gurgaon comes from investors geared towards rental income. Gurgaon offers a good choice of luxury housing, with a number of luxury housing projects that are either operational or nearing completion/under construction. These high-end luxury apartments boast of world class amenities that expats look for in their residences World-class educational and Many high- end apartment seekers prefer taking uber luxury homes on rent over outright purchase. Gurgaon has, in fact, emerged as a welldefined market for investors focused on l uxury homes, which accounts for the steady supply of rental options available in the most desired locations. This, despite the fact that luxury rental values in Gurgaon also underwent a correction of around 11% year-on-year in 2012-13, thereafter seeing only a marginal recovery of less than 1%.
Currently, the stock of luxury apartments in Gurgaon healthcare facilities Presence of high-end malls, shopping centres and multicuisine restaurants that offer food of all major world cuisines Good MRTS (Rapid Metro) system which has massive expansion plans Close proximity to airport Rapidly growing infrastructure
In the future, Gurgaon’s luxury real estate market is expected to pick up momentum on account of:
fundamentals remaining strong on account of healthy office space absorption and the city’s position as the preferred residential destination for upper levels of management across various corporations. Quality of construction, amenities, specifications and proximity to social infrastructure will continue to act as drivers for improved demand momentum. Luxury housing is based on concepts of niche address and limited upcoming supply, especially on the Golf Course Road Interest rate softening may have a positive impact as end-user buyers, especially salaried professionals (the upper-tier management) are looking to upgrade to luxury accommodation by selling off older investments and bridging the gap through bank loans Secondary market transactions for completed and close to completion projects is likely to inject momentum in the primary market going forward.