Residential Housing Prices Soar in Delhi and Mumbai: A Post-Pandemic Boom
Home prices in Delhi and Mumbai have surged by 49% and 48% respectively since 2019, driven by a post-pandemic boom in the housing market and rising construction costs.
Housing MarketResidential HomesDelhiMumbaiPost Pandemic BoomReal EstateReal Estate NewsJul 07, 2024
The post-pandemic boom in the housing market and rise in prices of key raw materials have contributed to this significant price hike. After struggling for close to a decade pre-Covid due to growing inventories and poor off-take, the NCR market has seen massive demand for residential homes, resulting in a 49% jump in average prices. Similarly, homes in MMR, the country's largest property market, have become costlier by 48% during the same period.
The steep rise in housing prices in Delhi-NCR and MMR can be attributed to steep hikes in construction costs, as well as healthy sales. Prior to the pandemic, prices in both regions had maintained a status quo from late 2016 to 2019. However, the pandemic brought about a significant shift in the market, causing demand to soar to new heights. Initially, developers induced sales with offers and freebies, but with demand heading north, they gradually increased average prices.
Strong sales helped unsold inventory to decline in the period, especially in NCR. According to Aakash Ohri, Joint MD & Chief Business Officer at DLF, a notable change during this period has been the increased demand for luxury and high-end properties, a trend that emerged during the pandemic.
Anuj Puri, Chairman, Anarock Group, notes that the pandemic was an undisguised blessing for the National Capital Region. Once infamous for high unsold inventory fed by speculative demand and supply, the region has seen a sharp decline of over 52% in its unsold stock in the last five years – from approximately 1.82 lakh units at H1 2019-end to approximately 86,900 units by H1 2024-end. Interestingly, the inventory overhang has reduced to 16 months in NCR in H1 2024 as against 44 months back in H1 2019.
Information
Anarock Research is a leading real estate consultancy firm that provides in-depth analysis and research on the Indian property market. DLF is a prominent real estate developer in India, known for its luxury residential projects.
Anarock Group is a leading real estate consultancy firm that provides comprehensive services to its clients, including research, analytics, and advisory services. DLF Limited is a leading real estate developer in India, with a presence in Delhi, Gurgaon, and other major cities.
Frequently Asked Questions
What is the percentage increase in home prices in Delhi-NCR since 2019?
49%
What is the main reason for the surge in housing prices in Delhi and Mumbai?
Post-pandemic boom in the housing market and rise in prices of key raw materials
What is the current unsold inventory in NCR?
Approximately 86,900 units
What is the trend that emerged during the pandemic in terms of property demand?
Increased demand for luxury and high-end properties
What is the inventory overhang in NCR in H1 2024?
16 months
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