India's Housing Boom: NCR and MMR Prices Soar 49% in 5 Years
NCR and MMR housing prices surge 49% in five years, unsold inventory drops significantly
Housing PricesNcrMmrReal EstateIndiaReal Estate NewsJul 07, 2024
The significant surge in housing prices can be attributed to the steep hikes in construction costs and healthy sales. After maintaining a status quo from late 2016 to 2019, the pandemic struck, and the demand for residential properties soared to new heights. Developers initially offered discounts and freebies to induce sales, but as demand increased, they gradually hiked prices.
Anuj Puri, Chairman - ANAROCK Group, said, 'The COVID-19 pandemic was a boon for these two residential markets, causing demand to soar to new heights.' He added, 'Paradoxically, the pandemic was an undisguised blessing for the National Capital Region.'
The unsold inventory in both regions has also witnessed a significant decline. In NCR, the unsold stock reduced by over 52% in the last five years, from approximately 1.82 lakh units at H1 2019-end to approximately 86,900 units by H1 2024-end. The region has seen a sharp decline in its unsold stock, and the inventory overhang has reduced to 16 months in NCR in H1 2024 as against 44 months back in H1 2019.
In MMR, the current available stock is at approximately 1.95 lakh units, with a 13% decline in its unsold stock in the last five years. The region has seen over 5.26 lakh units launched between H1 2019 and H1 2024, thrice the new supply in NCR during this period.
Aakash Ohri, Joint Managing Director and Chief Business Officer, DLF Homes, said, '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.'
Within NCR, Gurugram 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.
Information
Anarock is a leading real estate consultancy firm that provides comprehensive solutions to developers, investors, and homebuyers. The company has a strong presence in India and offers expert advice on residential and commercial properties.
DLF Homes is a leading real estate developer in India, known for its luxurious and affordable residential properties. The company has a strong presence in NCR and MMR and offers a range of properties, from apartments to luxury villas.
Frequently Asked Questions
What is the percentage increase in housing prices in NCR and MMR in the last five years?
NCR saw a 49% increase, while MMR saw a 48% increase in housing prices in the last five years.
What is the current unsold inventory in NCR and MMR?
NCR has an unsold inventory of approximately 86,900 units, while MMR has an unsold inventory of approximately 1.95 lakh units.
What is the average housing price in NCR and MMR as of H1 2024?
The average housing price in NCR is ₹6,800 per sq ft, while in MMR it is ₹15,650 per sq ft.
What is the reason behind the surge in housing prices in NCR and MMR?
The surge in housing prices can be attributed to the steep hikes in construction costs and healthy sales, fueled by the pandemic.
Which region has emerged as a preferred choice for luxury homebuyers in NCR?
Gurugram has emerged as a preferred choice for luxury homebuyers in NCR, with a large presence of HNIs and UNHIs base and a significant rise in the number of affluent millennials.
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