NCR recorded a 49% five-yearly jump in average housing prices between H1 2019 and H1 2024 – from ₹4,565 per sq ft to ₹6,800 per sq ft. In MMR, the average residential prices appreciated 48% in the period – from ₹10,610 per sq ft in H1 2019 to ₹15,650 per sq ft in H1 2024, research data by Anarock has shown.
The steep rise of housing prices in Delhi-NCR and MMR is attributable to steep hikes in construction costs as well as healthy sales. Prices in both regions had maintained status quo from late 2016 to 2019. Just when these two markets were beginning to see green revival shoots, the pandemic struck.
“The COVID-19 pandemic was a boon for these two residential markets, causing demand to soar to new heights. Initially, developers induced sales with offers and freebies; but with demand heading north, they gradually increased average prices. Strong sales helped unsold inventory to decline in the period, especially in NCR,” said Anuj Puri, chairman – ANAROCK Group.
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“Paradoxically, the pandemic was an undisguised blessing for the National Capital Region,” said Puri.
Unsold inventory in NCR and MMR declines
“Once infamous for high unsold inventory fed by speculative demand and supply, the region has seen a sharp decline of over 52% in its unsold stock in the last five years – from approximately 1.82 lakh units at H1 2019-end to approximately 86,900 units by H1 2024-end. Interestingly, the inventory overhang has reduced to 16 months in NCR in H1 2024 as against 44 months back in H1 2019,” said Puri.
Conscious curtailment of fresh supply was a major factor that helped the region to clear its stock. ANAROCK data indicates that only about 1.72 lakh units were launched in NCR between H1 2019 and H1 2024.
Meanwhile, MMR’s current available stock is at approximately 1.95 lakh units. In the last five years, the region has seen a 13% decline in its unsold stock – largely on account of substantial new launches to meet resurgent demand.
MMR has seen over 5.26 lakh units launched between H1 2019 and H1 2024 – thrice the new supply in NCR in this period. The inventory overhang in the region came down 14 months as of H1 2024-end from 34 months back in H1 2019-end, the data showed.
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“The surge in demand for homes underscores a fundamental shift in people’s perception of homeownership, where the value of having a place to call home has become more apparent than ever before. The substantial returns offered by residential properties, especially luxury homes, have fueled an increasing trend of purchasing homes for investment purposes,” said Aakash Ohri, joint managing director and chief business officer, DLF Homes.
Within NCR, Gurugram, in particular, has emerged as a preferred choice for luxury homebuyers, with a large presence of HNIs and UNHIs base and a significant rise in the number of affluent millennials in the region, who prefer to stay close to work, and are willing to go the extra mile for their convenience and indulgent lifestyle.
There has also been a newly stirred up insistence on luxurious integrated townships that offer affluent homes, safety, and security to the homebuyers, he said.
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