Residential prices surge by 49% in five years in Delhi and Mumbai
housing sales have resulted in decline of unsold inventory and average residential prices to soar by 49% between H1 2019 and H1 2024 in Delhi and Mumbai.
NCR recorded a 49% five-yearly jump in average residential prices from Rs 4,565 per sq. ft. to Rs 6,800 per sq. ft.
In MMR, average residential prices appreciated 48% in the period – from Rs 10,610 per sq. ft. in H1 2019 to Rs 15,650 per sq. ft. in H1 2024.
«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,” said Anuj Puri, Chairman — Anarock group.
The steep rise of housing prices in Delhi-NCR and MMR is attributable to steep hikes in construction costs as well as healthy sales. Prices in both regions had maintained status quo from late 2016 to 2019. Just when these two markets were beginning to see green revival shoots, the pandemic struck.
The COVID-19 pandemic was a boon for these two residential markets, 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.
“The surge in demand for homes underscores a fundamental shift in people's perception of homeownership, where the
