The Delhi-National Capital Region (NCR) real estate market has experienced a significant transformation over the past five years, marked by a substantial increase in housing prices and a notable reduction in unsold inventory.
According to a recent report by ANAROCK Property Consultants, average residential property prices in the NCR have risen by approximately 49%, escalating from ₹4,565 per square foot in the first half of 2019 to ₹6,800 per square foot in the first half of 2024.
Simultaneously, the region has seen a 52% decline in unsold housing stock, decreasing from around 1.82 lakh units at the end of H1 2019 to approximately 86,900 units by the end of H1 2024. This reduction has also led to a decrease in inventory overhang—from 44 months in H1 2019 to 16 months in H1 2024—indicating a healthier balance between supply and demand.
Anuj Puri, Chairman of ANAROCK Group, attributes this positive shift to several factors, including a conscious effort by developers to limit new supply, thereby avoiding oversaturation of the market. Between H1 2019 and H1 2024, approximately 1.72 lakh new units were launched in the NCR, while sales during the same period reached about 2.72 lakh units, reflecting robust demand.
The COVID-19 pandemic, paradoxically, acted as a catalyst for this transformation. Initially, developers offered incentives to attract buyers, but as demand surged, prices were gradually increased. This trend underscores a renewed buyer confidence in the region, further bolstered by regulatory reforms such as the Real Estate (Regulation and Development) Act (RERA) and the implementation of the Goods and Services Tax (GST).
City-wise data reveals significant improvements across the NCR:
- Gurgaon: Unsold inventory reduced by 37%, from approximately 53,136 units in 2018 to 33,326 units by Q1 2024.
- Noida: Experienced a 71% decline, with unsold units dropping from around 25,669 in 2018 to 7,451 in Q1 2024.
- Greater Noida: Saw a 70% decrease in unsold inventory, from approximately 61,628 units in 2018 to 18,668 units by Q1 2024.
- Ghaziabad: Reported a 70% reduction, with unsold units falling from around 37,005 in 2018 to 11,011 in Q1 2024.
- Delhi, Faridabad, and Bhiwadi combined: Experienced a 31% decline in unsold inventory, from approximately 23,038 units in 2018 to 15,964 units by Q1 2024.
Industry experts believe that the combination of strategic supply management, regulatory reforms, and increased demand for quality housing has revitalized the Delhi-NCR real estate market. This positive trajectory is expected to continue, offering promising opportunities for both developers and homebuyers in the region.
