The real estate market in the National Capital Region (NCR) has experienced a dramatic surge in property prices over the last five years. A recent report reveals that the average prices of new residential projects in key areas such as Noida, Greater Noida, Gurugram, and Ghaziabad have seen a substantial increase.
Noida stands out with the highest growth, witnessing a 152% rise in property rates, from Rs,5,910 per sq ft in 2019 to Rs,14,946 per sq ft by September 2024. Ghaziabad follows with a 139% increase, moving from Rs,3,691 per sq ft to Rs,8,823 per sq ft during the same period. In Gurugram, prices have climbed by 135%, rising from Rs,8,299 per sq ft in 2019 to Rs,19,535 per sq ft in 2024. Greater Noida also saw a 121% rise, with prices going from Rs,3,900 per sq ft to Rs,8,601 per sq ft.
Factors Behind the Price Hike
Infrastructure Growth: A significant factor contributing to the real estate boom in the NCR is extensive infrastructure development. Major projects such as the upcoming Noida International Airport, the Dwarka Expressway, the Delhi-Meerut Expressway, and the expanding Metro network have enhanced connectivity, making the region more accessible and attractive for property buyers. In addition, the Rapid Rail project is expected to make commuting more convenient. Impact of COVID-19: The pandemic influenced a shift in investment behavior, with many preferring real estate as a safer asset. This shift sustained a strong demand for property, even as prices surged. High Demand: Both end-users and investors are showing strong interest in the NCR real estate market, driving up prices. Limited Availability: A restricted supply of land, coupled with strict regulations, has limited the number of available properties, leading to a price increase. Changing Buyer Preferences: There is a growing trend among homebuyers seeking larger and more luxurious properties, which has boosted demand for premium and high-end housing.Samir Jasuja, Founder and CEO of PropEquity, emphasized that the NCR is undergoing a remarkable transformation. "The region is experiencing an infrastructural evolution with developments like Noida International Airport, Dwarka Expressway, the Delhi-Meerut Expressway, and Metro expansions, boosting the entire real estate sector," he said.
Shiwang Suraj, founder of a property consultancy in Gurugram, noted that the returns on real estate investments have outperformed other financial assets. He added, "Demand remains robust even at higher price levels, as reflected in the quicker turnaround time for property sales."
Abhishek Trehan, Executive Director of Trehan Iris, highlighted the region's growing popularity. "The significant rise in housing prices across NCR since 2019 shows the area's increasing appeal and the dynamic nature of the real estate market," he said. "We are seeing more homebuyers focused on long-term investments in well-connected and developed areas within Delhi NCR."
Arjun Nanda, Founder & CEO of a real estate consultancy, Your Home, pointed out that key infrastructure projects like the Dwarka Expressway have significantly boosted demand and property values. "While housing prices have adjusted to reflect higher land and construction costs, we anticipate a future with more stable or moderate price growth," he said.
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