Delhi-NCR outpaced Mumbai in 2022 real estate market

National Capital Region of Delhi (Delhi-NCR), the country’s second largest real estate market after the Mumbai Metro Region (MMR), bounced back to outpace all key markets, including MMR, in 2022. After its lacklustre performance in 2022, following the second COVID-19 wave that severely disrupted activities, the NCR market has emerged as the most preferred destination of private equity (PE) investors.Delhi-NCR attracted the largest chunk of PE investments during the April-December period. While the region, comprising cities like Delhi, Gurgaon, Noida, Greater Noida, Ghaziabad and Faridabad, received PE investments worth US$1,215 million (or US$1.215 billion) or over ₹9,700 crore during the period. The largest real estate market MMR received only US$224 million or ₹1,800 crore. Incidentally, investments in Delhi-NCR grew by a whopping 58 per cent year-on-year, compared to a 61 per cent drop in MMR. The sharp drop in investments resulted in MMR slipping to the third spot behind Chennai that received US$268 million or ₹2,150 crore during the period.While in the residential real estate market, the NCR market’s superior performance reflected in sales and launch numbers. As per Knight Frank Research, while Delhi-NCR (58,460 units) remained at the second spot behind MMR (85,169 units), sales grew fastest in NCR (by 67 per cent y-o-y) compared to any other market. In MMR market, sales grew by 35 per cent y-o-y, Bangalore registered a 40 per cent rise in sales of residential homes during 2022.