Residential property prices in Delhi-NCR and the Mumbai Metropolitan Region (MMR) have witnessed a substantial rise of nearly 50 per cent over the past five years, driven by robust demand and economic factors, according to a recent report by real estate consultancy Anarock.
Anarock’s data reveals that average housing prices in Delhi-NCR surged by 49 per cent, reaching Rs 6,800 per square foot in the first half of 2024 from Rs 4,565 per square foot in the same period in 2019. Similarly, in the MMR, prices escalated by 48 per cent, climbing to Rs 15,650 per square foot from Rs 10,610 per square foot over the same period. The sharp increase in prices is attributed to substantial hikes in construction costs and a sustained uptick in sales volume. Between late 2016 and 2019, prices in both regions had remained relatively stable, but the onset of the Covid-19 pandemic triggered unprecedented demand spikes, propelling prices upwards as developers capitalized on the surge.
“The Covid-19 pandemic acted as a catalyst for these residential markets, stimulating demand to unprecedented levels. Initially leveraging incentives and discounts, developers gradually raised prices in response to soaring demand,” Anarock highlighted. A spokesperson from TARC Ltd, a listed realty firm, emphasized, “The significant price appreciation in the NCR region underscores robust demand fuelled by infrastructure developments and improved connectivity. This trend underscores the region’s potential as a promising investment destination for sustainable growth. “Echoing this sentiment, a spokesperson from VS Realtors (I) Pvt Ltd, a Gurugram-based property brokerage firm, noted, “There has been a notable surge in demand for larger, more spacious homes in the NCR since the pandemic. This trend reflects shifting priorities among homebuyers towards comfort and quality living spaces.” The NCR’s status as a major economic hub continues to attract investors to its property market, driving further growth and development opportunities.
