South, West builders tap NCR for next growth wave

The National Capital Region (NCR) has become the top priority for developers from South and West India as the real estate market in the area gains momentum. Prestige Group and Sobha from Bengaluru have already expanded their presence in NCR, while Puravankara recently acquired a 13.44-acre plot for its first project in the region.

Godrej Properties, a major player from the West, has already established itself in NCR, while Oberoi Realty launched a massive Rs 16,000 crore project in Gurugram, expecting the NCR market to rival Mumbai in size. L&T Realty has acquired land in both Gurugram and Delhi, while Lodha is set to launch its first project in NCR.

NCR has emerged as a lucrative expansion market for established developers due to its deep residential market and a receptive buyer base for national brands. Shalin Raina, MD of residential services at Cushman & Wakefield, noted that the region's early-stage participation in project lifecycles can help developers quickly establish sales momentum.

Additionally, buyers in NCR are becoming increasingly discerning, focusing on brand credibility, execution track record, product quality, and delivery, creating opportunities for developers even when relatively new to the region.

Rajat Rastogi, CEO of Puravankara Limited, emphasized that NCR is becoming an important growth market for established developers from South and West India, reflecting confidence in the region's demand, pricing, and development potential. The entry of these developers signals a shift in how they view the NCR market, seeing it as more than just an expansion market but an important growth market with strong brands, execution capabilities, and customer trust.

The expansion of established names in NCR reflects the region's appeal, attributed to its infrastructure, diverse geography, and healthy competition among states. Large and listed developers are reducing their dependence on their home markets to tap growth opportunities in NCR, with interest from NRIs with roots in North India adding to the breadth of the buyer base.

The response to new entrants has given developers greater confidence in NCR as a long-term market, leading to expansion becoming less about testing a new geography and more about building a sustained presence.