Gurugram: Housing prices appreciate 50% in NCR, says report

Gurugram, July 7

Due to increased demand, average housing prices in Delhi-NCR and the Mumbai Metropolitan Region (MMR) have surged by more than 50 per cent over the past five years, according to the latest report by real estate analyst Anarock.

In Delhi-NCR, residential property prices have increased by 49 per cent, rising from Rs 4,565 per square foot in January-June 2019 to Rs 6,800 per square foot in the same period of 2024. Similarly, in the MMR, average housing prices have grown by 48 per cent, climbing from Rs 10,610 per square foot to Rs 15,650 per square foot during the same period.

Anarock attributes these price hikes to significant increases in construction costs and robust sales activity. The report notes that prices in both regions remained relatively stable from late 2016 to 2019 before the recent escalation.

According to Anarock, the Covid-19 pandemic acted as a catalyst for robust demand in Delhi-NCR and Mumbai’s residential markets, propelling sales to unprecedented levels. Initially, developers stimulated sales by offering incentives and freebies. As demand surged, they progressively raised average prices to capitalise on the market dynamics.

In parallel, India’s luxury real estate sector has also experienced a significant surge. Knight Frank’s “India Real Estate: Residential and Office (January-June 2024)” report highlights that sales of homes priced above Rs 1 crore constituted 41 per cent of total sales in the first half of 2024, compared to 30 per cent in the same period of 2023.

Across the country’s eight major cities, including Mumbai, Delhi-NCR, Bengaluru, Pune and Hyderabad, home sales have risen by 11 per cent compared to last year, totalling 1,73,241 units sold. This marks the highest level of sales recorded in the past 11 years.