Following the recent sale of an 11,000-square-foot apartment at The Camellias by DLF in Gurgaon’s Golf Course Road for over Rs 100 crore in a resale, comparisons are arising with real estate deals in New Delhi’s upscale neighborhoods, known for some of the priciest properties in India.
While experts note that the price aligns with bungalows in Delhi’s affluent areas and rivals premium sea-facing properties in Mumbai, they emphasize that this deal isn’t indicative of the entire Gurgaon micro-market. Comparable units by other developers in the same location may command only one-third of this price.
However, the deal does narrow the price gap between older established micro-markets of the National Capital Region and the relatively new Gurgaon market. These luxury apartments (The Camellias) were initially sold as bare-shell units in 2014 at Rs 22,500 per sq. ft. The recent deal, sources say, amounts to almost Rs 114 crore. The unit was originally purchased for about Rs 45 crore a few years ago, with the primary owner selling it after significant interior renovations.
“Appreciation of the golf course-facing unit, location, an unmatched product by a builder of repute, and the fact that the new owner gets a ready apartment and will not have to spend time and effort in doing up the condominium’s interiors are what helped the seller command a premium,” said Ritish Mehta, a senior director at Jones Lang LaSalle. “This is also a case of a luxury product by a particular developer that is driving demand. It is all about demand-supply mismatch – very few units of this kind are available in the Gurgaon market.”
Most buyers of luxury homes prefer bare-shell apartments, with almost 30 percent of the unit cost typically spent on interiors. Brokers note that properties near The Camellias in Gurgaon that do not face the golf course are priced upwards of Rs 15 crore.
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Amit Goyal, managing director of India Sotheby’s International Realty, highlights that luxury homes are about more than just brick and mortar; they encompass the amenities ecosystem. “Demand is driven by the communities created in and around, the security and the amenities on offer. People are willing to pay a premium for the right neighborhood, with all the desirable facilities,” Goyal said, acknowledging that in this case, the developer had created unmatched views, amenities, and services.
While the pricing benchmark sets a high standard for the market, it also reflects the overall strength of the economy. However, it’s essential to note that fully done 11,000 sq. ft apartments are rare, and the price at par with a bungalow in a posh Delhi area is not representative of the entire market, only of this project and developer.
Real estate brokers observe that the price difference between Gurgaon and Delhi is narrowing. In 2003, a plot in Delhi traded at about Rs 1 lakh per sq. yard compared with Rs 10,000-15,000 per sq. yard in Gurgaon. Now, some properties in Delhi trade at Rs 5 lakh per sq. yard compared with Rs 3 lakh per sq. yard in Gurgaon.
While an apartment can be purchased for Rs 100 crore in Gurgaon, in Delhi, a buyer would also get to own the land on which there is the flexibility to construct a basement and four floors.
In conclusion, high-value transactions like these indicate the robustness of the luxury real estate market, emphasizing the significance of location, amenities, and community offerings in driving demand.
