The real estate landscape in the Delhi-National Capital Region (NCR) has undergone a remarkable evolution over the past five years. Driven by a surge in demand, regulatory reforms, and a cautious supply approach from developers, the region has witnessed a substantial rise in residential property prices coupled with a sharp reduction in unsold inventory.
According to a recent market analysis by ANAROCK Property Consultants, residential property prices in NCR have soared by nearly 49% between the first half (H1) of 2019 and H1 2024. The average rate has climbed from ₹4,565 per square foot to approximately ₹6,800 per square foot. This increase not only reflects renewed buyer confidence but also a maturing real estate ecosystem that has begun to balance supply with demand more effectively.
Unsold Inventory Drops by Over 50%
Alongside the price escalation, unsold housing stock in the region has dropped dramatically by 52%, shrinking from 1.82 lakh units at the end of H1 2019 to just about 86,900 units by the end of H1 2024. This sharp decline signals a shift towards market equilibrium and healthier dynamics in the region.
One of the key indicators of this change is the reduction in inventory overhang—the estimated time required to sell the existing unsold inventory based on current sales velocity. In H1 2019, the inventory overhang stood at 44 months, but by H1 2024, it had dropped to just 16 months. This significant drop demonstrates improved absorption rates and increased buying activity across NCR.
Developer Strategy: Controlled Supply, Improved Sales
Anuj Puri, Chairman of ANAROCK Group, attributes this transformation to the strategic behavior of developers. Unlike in the past, when markets were flooded with new launches, developers have now adopted a more cautious approach. From H1 2019 to H1 2024, approximately 1.72 lakh new residential units were launched in NCR. During the same period, sales touched 2.72 lakh units, highlighting a strong demand-supply balance in favor of sellers.
This supply moderation helped prevent market saturation and played a key role in reducing the unsold stock. Developers also focused on delivering ongoing projects rather than announcing new ones, ensuring timely completion and reinforcing consumer trust.
COVID-19 as a Market Catalyst
Interestingly, the COVID-19 pandemic, initially perceived as a major threat to the real estate sector, turned out to be a catalyst for change. In the immediate aftermath, developers introduced buyer-friendly incentives and offers to spur interest. However, as market conditions stabilized and demand bounced back, prices started to rise steadily.
The pandemic also led to a change in buyer preferences. With the shift to remote work and a greater emphasis on home ownership, many buyers prioritized investing in larger, quality living spaces. This behavioral shift boosted sales across both affordable and premium housing segments.
Reforms Build Trust in the Market
Regulatory measures introduced in the past decade have played a pivotal role in shaping a more transparent and accountable real estate sector. The implementation of the Real Estate (Regulation and Development) Act (RERA) brought in more discipline among developers, ensuring timely project deliveries and greater protection for homebuyers.
In addition, the rollout of the Goods and Services Tax (GST) streamlined the tax structure, making property transactions simpler and more transparent. These reforms significantly enhanced buyer confidence, encouraging more people to invest in residential properties across NCR.
City-Wise Breakdown of Market Performance
The transformation has been visible across all major sub-markets in the NCR. Here’s a closer look at how various cities within the region have performed:
Gurgaon
One of the most active real estate markets in the NCR, Gurgaon witnessed a 37% drop in unsold inventory. The number of unsold units reduced from around 53,136 in 2018 to 33,326 units by the first quarter (Q1) of 2024. The city continues to attract buyers due to its robust infrastructure, proximity to corporate hubs, and presence of high-end residential developments.
Noida
Noida has shown one of the strongest performances in the region, registering a 71% reduction in unsold stock. The city’s inventory dropped from approximately 25,669 units in 2018 to 7,451 units in Q1 2024. The presence of planned sectors, upcoming infrastructural projects, and competitive pricing has made Noida a prime choice for both investors and end-users.
Greater Noida
Greater Noida followed a similar trend with a 70% decline in unsold homes. The available units fell from about 61,628 in 2018 to 18,668 by Q1 2024. Improved connectivity through the metro and expressways, along with relatively lower property prices, have contributed to this improved performance.
Ghaziabad
Known for its affordability, Ghaziabad also reported a 70% drop in unsold inventory, decreasing from around 37,005 units in 2018 to 11,011 units by Q1 2024. The city’s strong transport links and growing civic infrastructure have been instrumental in attracting homebuyers.
Delhi, Faridabad & Bhiwadi
These cities combined experienced a 31% reduction in unsold inventory. The figure came down from roughly 23,038 units in 2018 to 15,964 units in Q1 2024. While the decline is relatively lower compared to other regions, it still reflects a positive market trend and improving buyer sentiment.
A Promising Outlook Ahead
The overall transformation of the Delhi-NCR residential property market signals a new era of stability and optimism. With supply under control, demand on the rise, and transparency becoming the norm, both buyers and developers are in a better position than ever.
Experts believe that this upward trend is likely to continue over the next few years. The region remains a hub of infrastructure development—with projects such as new metro lines, expressways, and townships further enhancing its appeal.
Moreover, as job markets expand and disposable incomes rise, the appetite for home ownership in NCR is expected to grow stronger. Developers, having learned from past cycles of overbuilding and price stagnation, are likely to continue their cautious yet confident approach.
Conclusion
The Delhi-NCR real estate market is no longer the speculative, oversupplied landscape it once was. Through a combination of thoughtful supply management, evolving consumer preferences, pandemic-driven shifts, and impactful regulatory reforms, the region has emerged stronger and more resilient.
For homebuyers, this is an opportune time to enter the market, with ample choices across segments and cities. For developers, the focus remains on timely delivery, quality construction, and building lasting customer trust.
As the market matures, NCR is poised to remain one of India’s most dynamic and sought-after real estate destinations.
