Why Are NCR Property Prices Rising 152% in Just 5 Years?
Over the past five years, the NCR property market has seen a significant rise in prices. According to a report by PropEquity, the weighted average price of new residential projects in key NCR cities—Gurugram, Noida, Greater Noida, and Ghaziabad—has more than doubled during this period.
Price Surge Across NCR
Among the cities, Noida has seen the highest price hike. NCR property prices have skyrocketed by 152%, from Rs 5,910 per sq ft in 2019 to Rs 14,946 per sq ft in September 2024. Ghaziabad follows closely, with a 139% rise, pushing prices from Rs 3,691 per sq ft to Rs 8,823 per sq ft.
Gurugram, a prime real estate hub, has seen a 135% increase in prices, moving from Rs 8,299 per sq ft in 2019 to Rs 19,535 per sq ft in 2024. Greater Noida experienced a notable increase of 121%, with prices rising from Rs 3,900 per sq ft to Rs 8,601 per sq ft.
Key Drivers of NCR Property Price Growth
The increase in property prices can be attributed to several key factors:
- Infrastructure Development: Major infrastructure projects like the Noida International Airport, the Dwarka Expressway, the Delhi-Meerut Expressway, and the expansion of the metro system have significantly enhanced the connectivity and accessibility of the region.
- Pandemic Impact: The COVID-19 pandemic has reshaped investment preferences, with more individuals turning to real estate as a stable and secure investment avenue. This shift has helped sustain demand for property, even as NCR property prices continue to rise.
- Increased Demand: Both end-users and investors have actively contributed to the heightened demand for housing, further driving up prices.
- Limited Supply: The scarcity of land and stringent regulatory frameworks have limited the availability of new projects, thereby amplifying the rise in NCR property prices.
- Changing Buyer Preferences: Homebuyers are increasingly seeking larger, more luxurious properties, which has led to a surge in demand for premium and luxury homes. This demand has further pushed NCR property prices upward.
Experts Weigh In on NCR Property Prices Trend
Samir Jasuja, Founder and CEO of PropEquity, stated, “NCR is undergoing an infrastructural transformation like never before, with developments such as the Noida International Airport, Dwarka Expressway, Delhi-Meerut Expressway, and metro expansion, among others, acting as catalysts for growth in all real estate segments and driving NCR property prices.”
Shiwang Suraj, Founder of Gurugram-based property consultancy InfraMantra, highlighted that real estate has now outpaced all other investment tools in terms of return on investment. He added that “demand remains robust even at elevated price levels, as reflected in the quicker turnaround time for property transactions, which serves as a clear sign of the ongoing increase in NCR property prices.”
Abhishek Trehan, Executive Director of Trehan Iris, also emphasized the growing appeal of NCR property prices, stating, “We have seen a marked shift in buyer behavior, with a growing preference for long-term investments in well-connected, high-potential locations in the region.”
Arjun Nanda, Founder & CEO of real estate consultancy Your Home (YHATAW), explained that while the increase in property prices is aligned with higher land and material costs, infrastructure projects like the Dwarka Expressway have been pivotal in driving demand and price growth. However, he anticipates a more stable or moderate growth trajectory in NCR property prices in the near future.
Conclusion
The NCR property market is experiencing a significant transformation, with substantial price increases driven by infrastructure advancements, rising demand, and changing buyer preferences. As the region becomes increasingly well-connected, property prices are expected to stabilize or experience modest growth. Real estate in NCR continues to be an attractive long-term investment, especially for those seeking properties in prime, well-connected locations.
Read more: Housing Sales in India Rise 7% to Record High in 2024
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