NCR Residential Real Estate Outlook 2023

Mon, 05/22/2023 - 11:51

Author: JLL


The year 2022 has been a phenomenal year for residential real estate in terms of sales and new supply in the market, which have set benchmarks with each quarter. The National Capital Region (NCR) has witnessed robust growth in residential sales post-pandemic despite an increase in lending rates by RBI and global headwinds on account of the Ukraine war and high inflation globally,

It is observed that the government's special thrust on infrastructure projects and private investments, along with an inherent demand for residential assets across all strata of society, will keep the momentum going in the year 2023. Many A-grade developers like DLF, Adani, Godrej, etc. have a slew of big residential projects scheduled to be launched in 2023 where all residential asset classes like apartments, independent floors, villas, plots, etc. will be in high demand. It is expected that 3 and 4 BHK apartments will gain maximum traction in reputed developer projects. Due to the consistent demand by consumers, we can expect an average price increase of around 7–11% year-on-year, and in certain micro-markets, it may go up to 20% where big infrastructure projects like the Dwarka Expressway are underway with a completion timeline of 2023.

Noida, Greater Noida, and Yamuna Expressway:

The upcoming Jewar airport, as well as the state government's desire for large corporate investments in Noida and Greater Noida, will drive demand across all asset classes over the next 3-5 years. Residential demand is directly proportional to the economic activity in the region. With the ongoing development of Jewar Airport, the region is poised for superlative economic activity in the coming years. We have recently seen some grade-A developers like Max, L&T, Godrej, etc. acquire land parcels in the region with no dues to the authorities and are expected to launch their luxury residential projects in 2023. The local authority is also constantly working with local developers such as ATS, Mahagun, and others to find a solution to the long-standing impasse of land dues owed to the authority, which has gotten even worse after the Supreme Court judgement. However, this location will see a very good supply of some good projects from both Grade A and B developers, giving prospective buyers plenty of credible options to choose from.


Gurugram city in the National Capital Region has witnessed the maximum number of new supplies and sales in the year 2022. Due to its proximity to domestic and international airports, Gurugram has become a first choice for multinational companies to inaugurate their India offices. Its tremendous growth in commercial leasing in the last decade resulted in the development of all residential asset classes throughout the city. The year 2023 will witness a lot of supply coming up in micro-markets like Dwarka Expressway, Golf Course Extension Road, Southern Peripheral Road, New Gurgaon, and Sohna. The infrastructure development, economic activity, good existing social infrastructure, and indulgent lifestyle will keep demand going in Gurugram city.

Further, due to the lack of gated communities in South Delhi & West Delhi, many residents are planning to move into the Millennium City for a better lifestyle. This has further put pressure on the already stressed supply of good projects/inventory. In 2023, we could see a lot of big bang launches in Gurgaon from grade A developers like DLF, M3M, Adani, Godrej, Emaar, etc. with a price hike of around 5–7% in the short run and over 15% in certain micro-markets in the long run.

An advice to the prospective buyer:

There is never a good or bad time to invest. We just need to have the knack for identifying the right opportunity at any given point in time and the confidence to go ahead with our buying decision. To help consumers make the right decision, the role of professional real estate consultants like JLL comes into play. Never go after investment schemes in real estate wherein the developer is offering a lucrative return along with an easy exit after a certain period. These kinds of investments are highly vulnerable to macroeconomic conditions. During headwinds, it is tough for such projects to survive. Therefore, investing wisely is the only way to keep yourself safe.

In a nutshell, we should invest in the end consumer’s product and not in the investor's product. A prospective buyer should instead invest in the right product or project in terms of efficient layouts, construction quality, open area, amenities, security, etc. They should also consider the track record of the developer and its financial position. It might come at a premium; however, it will be worth the investment in the grand scheme of things. Happy Real Estate 2023!!!