Home prices jump 49% in Delhi, Mumbai since 2019
Latest data from Anarock Research shows, homes in the national capital region of Delhi (NCR) and Mumbai Metro Region (MMR) have become costlier by a half over the last five years.
- Jul 7, 2024,
- Updated Jul 7, 2024 3:53 PM IST
Post-pandemic boom in the housing market and rise in prices of key raw materials have resulted in an unprecedented surge in prices of residential homes in two of the leading markets in India. Latest data from Anarock Research shows, homes in the national capital region of Delhi (NCR) and Mumbai Metro Region (MMR) have become costlier by a half over the last five years.
In NCR, a market that had struggled for close to a decade pre-Covid from growing inventories and poor off take, has witnessed massive demand for residential homes. Average price in the market, as result, has jumped 49% between H1, 2019 and H1, 2024. While in the country’s largest property market - MMR homes have become costlier by 48% during thr same period.
As per Anarock, 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.
According to Aakash Orhi, Joint MD & Chief Business Officer at DLF, a notable change during this period has been the increased demand for luxury and high-end properties, a trend that emerged during the pandemic.
"Paradoxically, the pandemic was an undisguised blessing for the National Capital Region," says Anuj Puri, Chairman, Anarock Group. "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 approx. 1.82 lakh units at H1 2019-end to approx. 86,900 units by H1 2024-end. Interestingly, the inventory overhang has reduced to 16 months in NCR in H1 2024 as against 44 months back in H1 2019."
Post-pandemic boom in the housing market and rise in prices of key raw materials have resulted in an unprecedented surge in prices of residential homes in two of the leading markets in India. Latest data from Anarock Research shows, homes in the national capital region of Delhi (NCR) and Mumbai Metro Region (MMR) have become costlier by a half over the last five years.
In NCR, a market that had struggled for close to a decade pre-Covid from growing inventories and poor off take, has witnessed massive demand for residential homes. Average price in the market, as result, has jumped 49% between H1, 2019 and H1, 2024. While in the country’s largest property market - MMR homes have become costlier by 48% during thr same period.
As per Anarock, 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.
According to Aakash Orhi, Joint MD & Chief Business Officer at DLF, a notable change during this period has been the increased demand for luxury and high-end properties, a trend that emerged during the pandemic.
"Paradoxically, the pandemic was an undisguised blessing for the National Capital Region," says Anuj Puri, Chairman, Anarock Group. "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 approx. 1.82 lakh units at H1 2019-end to approx. 86,900 units by H1 2024-end. Interestingly, the inventory overhang has reduced to 16 months in NCR in H1 2024 as against 44 months back in H1 2019."