Housing Prices In Delhi NCR & MMR Climb 49% In 5 Years: Report

India’s two leading realty hotspots NCR and MMR (Mumbai Metropolitan Region) have recorded breaking residential property sales. This has resulted in unsold inventory to decline and average prices to soar by 49% in the last five years.

“Latest Anarock Research data finds that NCR recorded a 49% five-yearly jump in average residential prices between H1 2019 and H1 2024 – from Rs 4,565 per sq. ft. to Rs 6,800 per sq. ft.,” said Anuj Puri, chairman, Anarock Group.

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“In MMR, average residential prices appreciated 48% in the period – from Rs 10,610 per sq. ft. in H1 2019 to Rs 15,650 per sq. ft. in H1 2024.”

Top findings of the report;

• NCR recorded a 49% jump in avg. residential prices b/w H1 2019 & H1 2024
• MMR saw average residential prices appreciate 48% in the period
• Massive sales saw NCR witness over 52% 5-year decline in unsold stock
• Unsold stock in MMR saw a 13% decline in the last five years
• MMR witnessed massive new supply post-pandemic; NCR saw restricted supply in the period
• NCR saw approx. 2.72 lakh units sold; MMR saw sales of 5.50 lakh units

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 the status quo from late 2016 to 2019. Just when these two markets were beginning to see green revival shoots, the pandemic struck.

Why Price Increase?

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.

“Paradoxically, the pandemic was an undisguised blessing for the National Capital Region,” said Puri.

“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 approx. 1.82 lakh units at H1 2019-end to approx. 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.”

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 currently available stock is at approx. 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.