Property Prices Rise In Delhi NCR, Mumbai: Know What's Driving The Surge

Average property prices in Delhi’s National Capital Region (NCR) have seen a staggering 49 per cent spike in the past year with the trend of rising demands for luxury housing. A recent report by PropTiger.com, an independent real estate advisor, states that property prices surged across many Indian cities during October-December 2024 amid the rising costs of building materials and labour.

The report, titled ‘Real Insight: Residential Annual Round-up 2024,’ finds that where the southern housing market (such as in Hyderabad) the price growth saw a tepid movement after nearly a decade of sharp hikes, all other cities covered in their analysis showed double-digit price increase.

The data reviewed price appreciation across the following cities;

Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (consisting of Gurugram, Noida, Greater Noida, Ghaziabad, and Faridabad), Mumbai Metropolitan Region (Mumbai, Navi Mumbai and Thane), and Pune.

What has led to this price hike?

The report notes that investment and purchases by High-net-worth inidividuals (HNWI) could be a driving cause behind this price appreciation. It states, “HNWI deploying money in Delhi-NCR (which is home to over 10 recently-listed start-ups) has kept the growth momentum going for this coveted residential market as developers prioritise premium offerings to affordable homes.”

This factor has contributed significantly to the annual rise in sales in this region (NCR) even though pan-India numbers showed a 26 per cent year-on-year (YoY) dip. For instance, Gurugram reported a whopping 144 per cent YOY increase in sales followed by Greater Noida (54 per cent YoY spike), and Noida (at 3 per cent YoY hike).

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Prices of properties in Mumbai, referred to as India’s financial capital, increased by an average of 18 per cent YoY - moved by the same factors, the report notes. Due to its already elevated real estate market, which is abreast with housing HNW business stalwarts and Bollywood celebrities, Mumbai is counted among the most unaffordable housing markets.