Planning to buy a home in Delhi-NCR or Mumbai? You should be reading this

Average housing prices in Delhi-NCR and the Mumbai Metropolitan Region (MMR) have surged by nearly 50% over the past five years, driven by higher demand, according to data from real estate consultant Anarock.

Anarock's report reveals that the average price of residential properties in Delhi-NCR jumped 49% to Rs 6,800 per square foot in January-June 2024, up from Rs 4,565 per square foot during the same period in 2019.

Similarly, in the MMR, housing prices rose 48% to Rs 15,650 per square foot from Rs 10,610 per square foot over the same timeframe.

The price hike is attributed to steep increases in construction costs and strong sales. Prices in both regions had remained stable from late 2016 to 2019.

"The COVID-19 pandemic significantly boosted these two residential markets, causing demand to reach new heights. Initially, developers attracted buyers with offers and freebies, but as demand increased, they gradually raised prices," Anarock noted.

Amar Sarin, MD and CEO of TARC Ltd, commented, "The significant 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 highlights 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, observed, "There has been a significant increase in demand for residential properties in NCR since the pandemic. People are prioritizing more spacious homes."

Jha also mentioned 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, stated 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 major locations in and around Delhi-NCR, including Bahadurgarh, have seen sharp increases in housing prices.

Wason added that the development of road infrastructure has been a major factor in the rise of property prices in Delhi-NCR and its surrounding cities.