Representative image of increasing property prices.
Credit: iStock Photo
Mumbai: Housing prices of two leading realty hotspots - National Capital Region (NCR) and Mumbai Metropolitan Region (MMR) have surged in the last five years, according to reports of ANAROCK Property Consultants Pvt. Ltd.
The NCR recorded a 49 per cent jump in average residential prices between H1 2019 and H1 2024 while MMR saw average residential prices appreciate 48 per cent in the period.
"Latest ANAROCK Research data finds that NCR recorded a 49 per cent five-yearly jump in average residential prices between H1 2019 and H1 2024 – from Rs 4,565 per sq. ft. to Rs 6,800 per sq. ft.," says Anuj Puri, Chairman, ANAROCK Group.
"In MMR, average residential prices appreciated 48 per cent in the period – from Rs 10,610 per sq. ft. in H1 2019 to Rs 15,650 per sq. ft. in H1 2024,” added Puri.
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 saw a decline in unsold inventory during the period, especially in NCR.
"Paradoxically, the pandemic was an undisguised blessing for the National Capital Region," said Puri in a press statement.
"Once infamous for high unsold inventory fed by speculative demand and supply, the region has seen a sharp decline of over 52 per cent 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,” he added.
Conscious curtailment of fresh supply was a major factor that helped the region clear its stock. ANAROCK data indicates that only about 1.72 lakh units were launched in NCR between H1 2019 and H1 2024.
Meanwhile, MMR’s current available stock is at approximately 1.95 lakh units. In the last five years, the region has seen a 13 per cent decline in its unsold stock - largely on account of substantial new launches to meet resurgent demand.
MMR has seen over 5.26 lakh units launched between H1 2019 and H1 2024 - thrice the new supply in NCR in this period. The inventory overhang in the region came down 14 months as of H1 2024-end from 34 months back in H1 2019-end.