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Residential property prices in Delhi-NCR surge, indicating strong growth in real estate sector

Priya Singh | 2024-03-07

Gurugram saw a remarkable 12% appreciation, with prices reaching Rs 7,000-7,200 per square foot
Delhi-NCR has emerged as a key player in the residential property market, with a notable surge in prices across eight major Indian cities. According to the latest report titled ‘Real Insight Residential’ by PropTiger.com, Delhi-NCR observed a 6% growth reaching Rs 4,800-5,000 per square foot during April-June.

Meanwhile, Gurugram, had a remarkable 12% appreciation, with prices reaching Rs 7,000-7,200 per square foot, and Noida witnessed an 8% rise to Rs 5,600-5,800 per square foot.

The rise in residential prices and the growth in housing sales signify the resilience of Delhi-NCR’s real estate sector and its ability to meet the evolving needs of homebuyers. As the demand for residential properties continues to rise, developers and industry stakeholders are well-positioned to leverage this growth trend by offering new launches and capitalizing on the strong market dynamics.

Ravi Aggarwal, managing director, Signature Global (India) said, “We believe in the power of Gurgaon’s limitless potential. The real estate market in Gurgaon is a shining example of this. With a low supply, high aspirations, and a substantial gap between Delhi and Gurgaon property rates, the potential for growth is immense. Backed by thriving infrastructure, burgeoning businesses, and abundant job opportunities, Gurgaon is ready to embrace the future.
The residential property market trends in other major cities like Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, and Pune show a 7% year-on-year increase in prices during the second quarter of 2023. Bengaluru experienced a 9% increase, while Chennai experienced a 3% increase, Hyderabad registered a 5% increase, and Kolkata experienced a 6% rise.

According to SK Narvar, group chairman of Trident Realty the housing market is upbeat, backed by positive economic sentiments. Despite rate hikes in the recent past, the housing segment witnessed healthy demand across cities resulting in upward movement of home prices.

“With the rise in the number of aspiring homebuyers and the transforming lifestyle, there is significant traction for premium and luxury residences across major cities. The significant hike witnessed in the residential properties across the housing market reflects the bolstered confidence and increased sense of homeownership amongst buyers seeking enhanced amenities and a holistic lifestyle. Amidst the strong and healthy growth momentum, we expect the housing segment to remain buoyant in the coming quarters as well,” he added.

Delhi-NCR’s prominence in the Indian market is a driving force behind price appreciation in major cities. With sustained demand and positive market indicators, the real estate sector offers lucrative opportunities for homebuyers and industry players.
The residential market in Delhi-NCR has experienced a significant increase in prices, showcasing growth and opportunity in the real estate sector. This surge in prices is driven by robust housing demand, highlighting the allure of urban living.

“Gurugram’s strategic location, infrastructural developments, and economic expertise have led to a remarkable increase in its residential prices. The sustained surge in demand for housing is powerful evidence of the inherent value of Gurugram’s real estate market, highlighting the long-term benefits of investing in quality residential properties here,” claimed Santosh Agarwal, CFO and Executive Director, Alphacorp.

Housing markets in Mumbai and Pune experienced moderate growth, with a 3% increase in prices per square foot. Mumbai’s average price was Rs 10,100-10,300, while Pune’s rate was Rs 5,600-5,800. This surge in residential property prices is attributed to robust housing demand.

During the April-June period, housing sales in the eight major cities recorded an 8% annual increase, totalling 80,250 units. This growth is primarily driven by the increased demand, particularly in Mumbai and Pune, where homebuyers are actively seeking residential properties.