Housing prices in Delhi and Mumbai region jump 49 pc in 5 years
Jul 07, 2024
New Delhi [India], July 7 : The housing prices in both the National Capital Region (NCR) and Mumbai Metropolitan Region (MMR) have witnessed a jump of 49 per cent in the last 5 years between first half (H1) 2019 and H1 2024, Latest ANAROCK Research data showed.
This has resulted in a plunge in stock inventories in this period with the Mumbai region seeing a 13 per cent decline in the unsold stocks and the NCR region has seen a sharp decline of over 52 per cent in its unsold stock in the last five years, as per the report.
Citing the reason for the jump in the prices the report said during these periods the sector has seen an increase in construction costs and healthy sales. Prices in both regions had maintained the status quo from late 2016 to 2019.
the NCR region saw its inventories declining approx. 1.82 lakh units at H1 2019-end to approx. 86,900 units by H1 2024-end.
Noting the decline in inventory overhang in the NCR, the report added that compared to 44 months in H1 2019, it has decreased to 16 months in H1 2024.
ANAROCK data indicates that only about 1.72 lakh units were launched in NCR between H1 2019 and H1 2024.
The steep rise of housing prices in NCR and MMR is attributable to steep hikes in construction costs as well as healthy sales. Prices in both regions had maintained the 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 helped unsold inventory to decline in the period, especially in NCR.
Meanwhile, Mumbai region's current available stock is at approx. 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, as per the report.
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."
