NCR and MMR Housing Prices Soar by 49% in Five Years, Unsold Inventory Drops
Delhi-NCR and MMR witness a significant surge in housing prices, with NCR seeing a 49% five-yearly jump and MMR a 48% increase. Unsold inventory in both regions declines, with NCR seeing a 52% drop and MMR a 13% decline.
NcrMmrHousing PricesReal EstateAnarockDlf HomesReal EstateJul 07, 2024
The steep rise in housing prices can be attributed to the increased construction costs as well as healthy sales. The COVID-19 pandemic played a crucial role in boosting demand, causing prices to soar to new heights. Developers initially offered discounts and freebies to induce sales, but as demand increased, they gradually raised prices.
Unsold inventory in both regions declined significantly, with NCR seeing a 52% drop from approximately 1.82 lakh units at H1 2019-end to approximately 86,900 units by H1 2024-end. MMR also witnessed a 13% decline in its unsold stock, from approximately 2.35 lakh units at H1 2019-end to approximately 1.95 lakh units by H1 2024-end.
ANAROCK data indicates that only about 1.72 lakh units were launched in NCR between H1 2019 and H1 2024, contributing to the decline in unsold inventory. In contrast, MMR saw over 5.26 lakh units launched between H1 2019 and H1 2024, thrice the new supply in NCR during this period.
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. The substantial returns offered by residential properties, especially luxury homes, have fueled an increasing trend of purchasing homes for investment purposes.
Gurugram has emerged as a preferred choice for luxury homebuyers in NCR, with a large presence of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UNHIs) base and a significant rise in the number of affluent millennials in the region. There has also been a growing demand for luxurious integrated townships that offer affluent homes, safety, and security to homebuyers.
Information
Anarock is a leading real estate consultancy firm that provides research and advisory services to clients.
DLF Homes is a prominent real estate developer that offers luxury residential properties in India.
ANAROCK Group is a leading real estate consultancy firm that provides research and advisory services to clients. The group is led by Anuj Puri, a renowned expert in the Indian real estate industry.
DLF Homes is a prominent real estate developer that offers luxury residential properties in India. The company is known for its high-quality construction and premium amenities.
Frequently Asked Questions
What was the five-yearly jump in average housing prices in NCR?
49%
What was the five-yearly jump in average housing prices in MMR?
48%
What was the decline in unsold inventory in NCR over the past five years?
52%
What was the decline in unsold inventory in MMR over the past five years?
13%
What has been the impact of the COVID-19 pandemic on the housing market in NCR and MMR?
It has been a boon, causing demand to soar to new heights and leading to a decline in unsold inventory.
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