Residential Properties in Gurugram: Emerging asset class for real-estate investors
Various aspects like Increasing sales of residential properties in Gurgaon and customers’ preference for modern amenities and luxurious lifestyles. Gurgaon has become an attractive hub for real estate investors.
In context to residential properties, a recent report disclosed that 3BHK apartments were the favored configuration during Q2 of 2022. These apartments claimed 42% of the share in entire sales. In context to the budget range, the report disclosed that more than 51% of the homes sold during the mentioned period were in the INR 1 Cr+ price range.
1) High reliability:
Delhi NCR region is densely populated due to the huge number of entrepreneurs and professionals residing there. The city scored well in terms of trust factor. Even leading real estate brands couldn’t complete projects in Noida, whereas leading brands in Gurgaon completed projects to ensure reliability.
2) Improved safety:
Another reason behind the residential properties emerging as an asset class is that luxury homes in Gurgaon provide enhanced safety. The high rental income suggests that you are ensured with safe monetary gains from your residential property. Moreover, another benefit is property of appreciation that means the value of your invested property grows over time. Hence, your investment turns out to be safe in respect to monetary gains.
3) Growth potential:
Gurgaon possesses a fast-growing real estate market and presents ample opportunities. Even ex-pats, ultra-high-net-worth individuals (UHNWIs), NRIs, and corporate leaders are searching for luxurious residential spaces in Gurugram. The city’s older regions are about to saturate, so the real estate activities have now flourished in the micro markets.
4) Increased NRI investment:
The construction of residential properties continues ongoing in the city. So, NRI investors perceive the city as a favorable option for investments. Specifically, in FY22, NRI investments in the Indian real estate market were approx. USD 14.9 billion. Gurgaon was the leading choice in India’s northern section.
5) Increasing real estate property sales:
The homebuyers are interested in buying Gurgaon luxury flats even if there is a rise in home loan rates. The real estate investors have focused their investments in key micro-markets like Golf Course Extension Road, the Dwarka Expressway, and Sohna Road.
The city’s luxury home segment perceived significant momentum because high net-worth buyers continued to invest in real estate properties. Therefore, the residential real estate sector will grow by 40% in 2022 as opposed to 2021. The growth rate is further anticipated to increase annually by 5% until 2027.
6) Rising property prices:
The demand for residential properties continually rises in Gurugram. So, the property prices have also witnessed a considerable rise. This increment has enticed end-users and real estate investors who were formerly reluctant to invest due to slow demand. The assurance of better returns in the city’s demanding real estate market suggests that its real estate properties are asset class for investors.
7) Constant development:
Even during the phase of sequential rate hikes by the RBI, the real estate sector in the city perceives exceptional growth. The constant development of this sector despite the rate hikes proves the city’s appeal and strength. Homebuyers and real estate investors have faith in the long-term real estate investment opportunities in the city. Hence, while investing in a residential property in Gurgaon, real estate investors consider the properties as asset class.
8) Demanding luxury homes:
The demand for luxury homes and 4 BHK luxury apartments in Gurgaon was boosted due to the availability of huge homes at cost-effective prices in smaller towns. Specifically, NRI has fueled the demand for luxury homes with enhanced safety in the city.
9) Demand of ready-to-move-in properties:
The under-construction properties are beneficial but they come with one key concern i.e. delay. On the other hand, ready-to-move properties don’t pose this concern. Hence, many home buyers prefer ready-to-move-in properties. Consequently, the relevant residential properties are demanding and they make the city an emerging asset class for investors.
Conclusion:
Various positive trends imply that the city’s real estate market will significantly benefit from the upsurge in realty investments. The two key aspects are outstanding growth rates in the real estate property market and enhanced interest in homeownership. These aspects have made residential properties in Gurgaon preferable for real estate investors. These properties will offer stability and immense growth opportunities in the future as well.