Residential Property Prices in NCR Rise by 32% Amid Strong Demand
Residential property prices in the National Capital Region (NCR) have surged by an average of 32% year-on-year, reflecting robust demand and limited inventory. This increase is the highest among the eight major cities in India, according to a recent report by real estate consultancy firms.
Key Highlights
• Demand Surge: The average price per square foot in NCR rose to ₹11,438 by September 2024, compared to ₹8,655 in 2021, showing consistent growth over the past three years.
• City-Wise Growth: Mumbai witnessed the highest price at ₹20,438 per square foot, followed by Bengaluru at ₹11,743 and Hyderabad at ₹11,351. NCR experienced the sharpest percentage increase in prices, attributed to a rise in demand and a shrinking supply of ready-to-move-in homes.
• Affordable Cities: Cities like Chennai and Kolkata recorded more modest growth rates, with prices averaging ₹7,889 and ₹7,616 per square foot, respectively.
Driving Factors
Manoj Gaur, Chairman of CREDAI NCR and MD of Noida-based real estate developer Gaurs Group, attributed the price hike to increasing demand for affordable housing and newly launched luxury projects. He noted, "The residential market in Noida, Greater Noida, and Ghaziabad is flourishing with strong sales and launches of premium properties."
Industry experts believe that the surge in demand is fuelled by factors such as urban migration, rising incomes, and an increase in the number of first-time homebuyers. The growth in infrastructure, such as new metro lines and improved connectivity, has further enhanced the attractiveness of NCR as a residential hub.
Outlook for 2024
The demand for residential properties in NCR is expected to remain strong, with a focus on both affordable and luxury segments. Developers are launching new projects to cater to this demand while maintaining competitive pricing. However, experts caution that continued price increases could impact affordability in the long run.
The NCR residential market's performance underscores the resilience of the real estate sector in India, with the region emerging as a hotspot for investment and homeownership.
