Housing Prices Soar by 49% in NCR and Mumbai Over 5 Years
Housing prices in the National Capital Region (NCR) and Mumbai Metropolitan Region (MMR) have surged by 49% from the first half (H1) of 2019 to H1 2024, according to the latest ANAROCK Research data.
Decline in Unsold Stock
The NCR saw a significant 52% drop in unsold stock, reducing from approximately 1.82 lakh units at the end of H1 2019 to around 86,900 units by the end of H1 2024. The inventory overhang in NCR decreased from 44 months in H1 2019 to 16 months in H1 2024. Meanwhile, MMR experienced a 13% decline in unsold stock, with the current available stock at approximately 1.95 lakh units.
Reasons for Price Increase
The rise in prices is attributed to increased construction costs and strong sales. Prices in both regions had remained stable from late 2016 to 2019. The COVID-19 pandemic boosted demand, leading to higher prices and reduced inventory. Initially, developers offered sales incentives, but as demand increased, they gradually raised prices.
New Launches
MMR launched over 5.26 lakh units between H1 2019 and H1 2024, three times more than NCR’s 1.72 lakh units during this period. In MMR, average residential prices appreciated by 48%, from Rs 10,610 per sq. ft. in H1 2019 to Rs 15,650 per sq. ft. in H1 2024.
