NCR Witnesses Sharp Housing Price Surge; Which City Lagged Behind?
Property prices in India’s National Capital Region (NCR) surged by 49% in the last year, driven by strong demand for luxury homes. The southern city of Hyderabad, however, saw the slowest growth in the housing market.
NcrReal EstateProperty PricesHousing MarketHyderabadReal Estate MumbaiJan 29, 2025
This significant rise is attributed to the sustained demand for luxury homes, coupled with increased costs of building materials and labor.
The report, titled 'Real Insight Residential Annual Round-up 2024,' highlights varying degrees of price growth across different cities in India.
While most cities recorded double-digit annual appreciation, the southern city of Hyderabad witnessed a slowdown in its housing market after nearly a decade of strong growth.
The cities covered in the analysis include Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (comprising Gurugram, Noida, Greater Noida, Ghaziabad, and Faridabad), Mumbai Metropolitan Region (Mumbai, Navi Mumbai, and Thane), and Pune.
Source Real Insight Residential – Annual Round-up 2024, Housing Research
The NCR, home to over 10 recently-listed start-ups, has seen high-net-worth individuals investing heavily in the region.
Developers have been prioritizing premium offerings over affordable homes, which has fueled the growth in key contributors such as Gurugram (144% increase YoY), Greater Noida (54% increase YoY), and Noida (3% increase YoY).
Despite a 26% year-on-year dip in pan-India sales, the NCR continued to perform well.
Property prices in India’s financial capital, Mumbai, also rose by an average of 18% YoY.
Mumbai, known for its business stalwarts, Bollywood stars, and sports celebrities, remains the most unaffordable housing market in the country.
The sustained price growth is a positive indicator of underlying demand and buyer sentiment.
However, rising costs and inflation are causing concerns about affordability.
In a country where a significant portion of the population relies on government subsidies for house purchases, the government must implement policy measures to promote affordable housing.
Positive tweaks in taxation laws in the upcoming budget and rate cuts by the Reserve Bank of India (RBI) could help ensure greater affordability for India’s growing middle class.
Dhruv Agarwala, Group CEO of Housing.com & Proptiger.com, emphasized the need for such measures “No doubt, this kind of price growth is indicative of underlying demand, growth prospects, and a positive buyer sentiment.
However, cost pressure might further affordability concerns in a country where a large part of the population relies on government subsidies for house purchases.
Amid hardening inflation and slowing growth, the government must launch policy measures that take care of this crucial aspect to promote affordable housing.
Positive tweaks in taxation laws in the upcoming Budget and rate cuts by the RBI could go a long way in ensuring greater affordability for India’s burgeoning middle class.”
Frequently Asked Questions
What was the percentage increase in property values in the NCR over the past year?
The property values in the NCR increased by 49% over the past year.
Which city in the southern region saw the slowest growth in the housing market?
Hyderabad saw the slowest growth in the housing market after nearly a decade of strong growth.
What factors contributed to the surge in property prices in the NCR?
The surge in property prices in the NCR is attributed to strong demand for luxury homes, increased costs of building materials and labor, and investments from high-net-worth individuals.
How much did property prices in Mumbai increase YoY?
Property prices in Mumbai increased by an average of 18% YoY.
What measures does the government need to take to promote affordable housing?
The government needs to implement policy measures such as positive tweaks in taxation laws, rate cuts by the RBI, and initiatives to ensure greater affordability for India’s growing middle class.
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