Delhi and Mumbai Housing Markets Witness 49% Price Surge Amidst Robust Sales
Record sales and reduced unsold inventory drive up average residential prices in Delhi-NCR and MMR, with a 49% increase over five years.
Delhi NcrMumbai Metropolitan RegionReal EstateHousing PricesLuxury HousingReal Estate MumbaiJul 07, 2024
According to recent reports, the National Capital Region (NCR) saw a 49% increase in average residential prices, rising from Rs 4,565 per sq. ft. to Rs 6,800 per sq. ft. between the first half of 2019 and the first half of 2024. Similarly, MMR witnessed a 48% appreciation, with prices climbing from Rs 10,610 per sq. ft. in H1 2019 to Rs 15,650 per sq. ft. in H1 2024.
The pandemic proved to be a blessing in disguise for NCR, which saw a sharp decline of over 52% in its unsold stock over the five-year period. The region's inventory overhang reduced to 16 months in H1 2024 from 44 months in H1 2019, largely due to a conscious curtailment of new supply.
On the other hand, MMR's current available stock stands at approximately 1.95 lakh units, with a 13% decline in unsold stock over the last five years. The region saw a substantial number of new launches, with over 5.26 lakh units launched between H1 2019 and H1 2024, three times the new supply in NCR. The inventory overhang in MMR decreased to 14 months in H1 2024 from 34 months in H1 2019.
Experts attribute the surge in housing prices to increased construction costs and robust sales. Developers initially stimulated sales with offers and incentives, but as demand surged, average prices were gradually increased. Strong sales significantly reduced unsold inventory, particularly in NCR.
The demand for homes has underscored a fundamental shift in people's perception of homeownership, with the value of having a place to call home becoming more apparent than ever before. There has also been a growing insistence on luxurious integrated townships that offer affluent homes, safety, and security to homebuyers.
Information
Anarock Group is a leading real estate consultant that provides expert advisory services to developers, investors, and homebuyers.
DLF Ltd is a renowned real estate developer with a legacy of over 75 years, known for its luxurious residential and commercial projects.
Smartworld Developers is a leading real estate developer that specializes in building luxurious integrated townships and independent floors.
The real estate market is experiencing significant demand for luxury housing and independent floors, driven by millennials seeking convenience. The surge in demand for homes has underscored a fundamental shift in people's perception of homeownership, with the value of having a place to call home becoming more apparent than ever before.
Frequently Asked Questions
What is the percentage increase in average residential prices in Delhi-NCR over the past five years?
49%
What is the current available stock in MMR?
Approximately 1.95 lakh units
What is the percentage decline in unsold stock in NCR over the past five years?
Over 52%
What is driving the demand for luxury housing in Delhi-NCR and MMR?
Millennials seeking convenience and a fundamental shift in people's perception of homeownership
Which city has seen a sharper decline in unsold inventory over the past five years?
Delhi-NCR
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