Housing Prices Surge in NCR and MMR: 49% Increase Over Five Years

The National Capital Region (NCR) and Mumbai Metropolitan Region (MMR) have experienced significant changes in their real estate markets over the past five years. According to data from Anarock, both regions have seen substantial increases in average residential prices and notable reductions in unsold inventory.

Housing Prices Surge in NCR and MMR

From the first half of 2019 (H1 2019) to the first half of 2024 (H1 2024), housing prices surged in NCR by 49%, increasing from ₹4,565 per square foot to ₹6,800 per square foot. Similarly, MMR saw a 48% appreciation in average residential prices, climbing from ₹10,610 per square foot to ₹15,650 per square foot during the same period.

Decline in Unsold Inventory

NCR’s unsold inventory saw a sharp decline of over 52%, dropping from approximately 182,000 units at the end of H1 2019 to around 86,900 units by the end of H1 2024. This reduction is attributed to a conscious curtailment of new supply, with only about 172,000 units launched in NCR during this period.In contrast, MMR’s unsold inventory decreased by 13%, with the current available stock at approximately 195,000 units. The region saw over 526,000 units launched between H1 2019 and H1 2024, three times the new supply in NCR. The inventory overhang in MMR reduced from 34 months in H1 2019 to 14 months in H1 2024.

Factors Driving the Changes

Several factors have contributed to these trends:

• Increased Construction Costs: Both regions have faced steep hikes in construction costs, which have been passed on to buyers, contributing to the rise in housing prices in NCR and MMR.
• Robust Demand: Despite the challenges posed by the COVID-19 pandemic, the demand for residential properties remained strong. Initially, developers attracted buyers with offers and incentives, but as demand continued to grow, they gradually increased average prices.
• Improved Infrastructure and Connectivity: Enhanced infrastructure and connectivity in NCR and MMR have made these regions more attractive to buyers, driving up demand and prices.
• Shift in Homeownership Perception: The pandemic underscored the value of homeownership, leading to a surge in demand for homes, particularly in luxury and integrated township projects that offer safety and security.

Conclusion

The real estate markets in NCR and MMR have shown remarkable resilience and growth over the past five years. Significant increases in residential prices and substantial reductions in unsold inventory reflect the regions’ strong demand and development potential. As these trends continue, both NCR and MMR are poised for sustained growth and investment opportunities in the real estate sector. The housing prices surge in NCR and MMR underscores the dynamic nature of these markets and their attractiveness to both buyers and investors.

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