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

Housing prices in NCR and MMR have surged by 49% from H1 2019 to H1 2024 due to higher construction costs and robust sales. The NCR's unsold stock plummeted by over 52%, while MMR saw a 13% decline. Significant new launches have met the resurgent demand.

The housing prices in the National Capital Region (NCR) and Mumbai Metropolitan Region (MMR) have skyrocketed by 49 percent over the past five years, from the first half (H1) of 2019 to H1 2024, according to the latest ANAROCK Research data. This surge has led to a dramatic drop in unsold stock, with NCR experiencing a more than 52 percent decline and MMR seeing a 13 percent reduction in the same period.

The hike in prices can be attributed to rising construction costs and robust sales. From late 2016 to 2019, prices in both regions were stable. However, inventory in NCR fell dramatically from around 1.82 lakh units at the end of H1 2019 to approximately 86,900 units by H1 2024.

ANAROCK's report also highlights a reduction in inventory overhang in NCR from 44 months in H1 2019 to 16 months in H1 2024. The region saw the launch of only 1.72 lakh units between H1 2019 and H1 2024. The COVID-19 pandemic played a significant role in spiking demand, driving developers to initially offer sales incentives before gradually raising prices as demand escalated.

In MMR, average residential prices jumped 48 percent, from Rs 10,610 per sq. ft. in H1 2019 to Rs 15,650 per sq. ft. in H1 2024. The region's available stock currently stands at approximately 1.95 lakh units, experiencing a 13 percent decline in unsold stock over five years due to substantial new launches aimed at meeting the resurgent demand. Between H1 2019 and H1 2024, MMR witnessed over 5.26 lakh units launched, which is thrice the new supply in NCR during the same period.

(With inputs from agencies.)