In a significant trend, average housing prices in Delhi-NCR and the Mumbai Metropolitan Region (MMR) have surged by nearly 50% over the past five years, driven by increased demand, according to data from real estate consultant Anarock.
Anarock's data reveals that the average rate of residential properties in Delhi-NCR escalated by 49%, reaching Rs 6,800 per square foot in January-June 2024, up from Rs 4,565 per square foot in the same period of 2019.
Similarly, in MMR, average housing prices rose by 48%, climbing to Rs 15,650 per square foot from Rs 10,610 per square foot during the review period.
The consultant attributes this price hike to steep increases in construction costs and robust sales. Anarock noted that prices in both regions had been stable from late 2016 to 2019.
"The COVID-19 pandemic boosted these two residential markets, causing demand to soar. Initially, developers induced sales with offers and freebies, but with rising demand, they gradually increased average prices," Anarock explained.
Amar Sarin, MD and CEO of listed realty firm TARC Ltd, commented, "The major rise in housing prices in the NCR region over the past five years reflects robust demand driven by infrastructural developments and enhanced connectivity. This trend underscores the region's potential for sustainable growth and investment opportunities."
Vijay Harsh Jha, founder and CEO of Gurugram-based property brokerage firm VS Realtors (I) Pvt Ltd, remarked, "There has been a significant increase in demand for residential properties in NCR since the pandemic. People are prioritizing more spacious homes."
Jha also pointed out that NCR's status as a major economic hub is attracting investors to the Delhi-NCR property market.
Yashank Wason, Managing Director of Royal Green Realty, added that the surge in housing prices in Delhi-NCR is driven by high demand, improved connectivity, infrastructure development, and strategic urban planning. He noted that all major locations in and around Delhi-NCR, including Bahadurgarh, have witnessed sharp appreciation in housing prices.
Wason emphasized that the development of road infrastructure has been a major factor contributing to the rise in property prices in Delhi-NCR and adjoining cities.
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