NCR Housing Market Sees Remarkable Growth: What's Driving the Surge?
Discover the factors behind the 49% increase in average residential prices in NCR over the past five years and its impact on the real estate market.
Ncr Housing MarketReal Estate MarketResidential PricesConstruction CostsSalesReal Estate NewsJul 07, 2024
The report notes that the average residential prices in NCR jumped from Rs 4,565 per sq ft to Rs 6,800 per sq ft between H1 2019 and H1 2024, indicating the market's strength. Despite the challenges posed by the pandemic, demand for residential properties in NCR remained high. Developers initially attracted buyers with various offers and incentives, but as demand continued to grow, they gradually increased average prices.
This surge in sales has resulted in a significant reduction in unsold inventory, which decreased by 52% from around 182,000 units at the end of H1 2019 to 86,900 units by the end of H1 2024. Additionally, the inventory overhang has shortened to 16 months in H1 2024, compared to 44 months in H1 2019.
The report states that developers have launched around 172,000 units in NCR between H1 2019 and H1 2024, and 272,000 units were sold during this period. Industry experts believe that the reduction in unsold inventory and the increased absorption rate are positive signs for the market's continued growth. This surge is not just a testament to the region's real estate potential but also reflects the broader economic recovery and GDP growth post-pandemic.
Rising residential prices in NCR reflect the increasing demand and rapid development in the region. Despite the higher costs, sales continue to surge, driven by a combination of improved infrastructure, robust economic growth, and a desire for modern living spaces. The NCR housing market began to see a revival just before the pandemic, following a period of price stagnation from late 2016 to 2019. Covid-19 too boosted demand for larger houses, pushing sales.
The report highlights that there has been a surge in latent demand, leading to an outbreak of new project launches. Nearly 3,000 units collectively were sold out in the pre-launch phase within days. Industry experts believe that the demand spans across demographics, attracting both first- and second-generation buyers in pursuit of an elevated lifestyle.
Information
Anarock is a leading real estate consultancy firm that provides expert insights and research-based reports on the real estate industry. Raheja Developers and DLF Home Developers are prominent real estate development companies operating in NCR.
Raheja Developers is a renowned real estate development company that has been operational in NCR for several years. The company has a reputation for delivering high-quality residential and commercial projects.
DLF Home Developers is a leading real estate development company that has been operational in NCR for several decades. The company has a reputation for delivering high-quality residential and commercial projects.
Rajdarbar Group is a real estate development company operating in NCR.
Frequently Asked Questions
What is the percentage increase in average residential prices in NCR over the past five years?
According to the report, there has been a 49% increase in average residential prices in NCR over the past five years.
What are the primary factors driving the increase in average residential prices in NCR?
The significant rise in construction costs and strong sales are cited as the primary factors driving the increase in average residential prices in NCR.
How has the unsold inventory in NCR changed between H1 2019 and H1 2024?
The unsold inventory in NCR has decreased by 52% from around 182,000 units at the end of H1 2019 to 86,900 units by the end of H1 2024.
What is the current inventory overhang in NCR?
The inventory overhang has shortened to 16 months in H1 2024, compared to 44 months in H1 2019.
How many units were sold in NCR between H1 2019 and H1 2024?
According to the report, 272,000 units were sold in NCR between H1 2019 and H1 2024.
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