The Delhi-NCR housing market has witnessed a massive 49% increase in property values over the past year, leading the nation in price growth, according to the latest report by digital real estate transaction and advisory platform dPropTiger.com. This surge is largely driven by sustained demand for luxury homes, despite rising costs for building materials and labor.
The rise in property values is part of a broader trend of price growth across major cities in India, although Delhi-NCR stands out for its rapid appreciation. The report highlights that areas like Gurugram, Greater Noida, and Noida have experienced significant sales increases, even as national housing markets showed a decline in overall sales.
According to the report, titled Real Insight: Residential Annual Round-up 2024 by PropTiger.com, property prices increased across cities during the October-December period of 2024, albeit in varying degrees. : Housing markets covered in the report includes Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad), MMR (Mumbai, Navi Mumbai & Thane) and Pune. While price growth slowed in the southern housing market of Hyderabad after nearly a decade of sharp rise, all other cities covered in the analysis showed double-digit annual appreciation.
The report highlights that while property price growth slowed in Hyderabad, which had seen nearly a decade of rapid price increases, other cities showed strong performance. Delhi NCR emerged as the standout performer, with its property values jumping from Rs 5,445 per square foot in Q4 2023 to Rs 8,105 per square foot in Q4 2024. This surge can be attributed to the growing presence of high-net-worth individuals and start-ups in the region, along with developers prioritizing premium housing projects over affordable ones.
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Bengaluru saw a 12% increase, while Chennai experienced a 16% rise. Mumbai Metropolitan Region (MMR), home to India's business and entertainment elite, recorded an 18% increase, making it one of the most expensive real estate markets in the country. However, despite this upward trend, the overall housing market in India is facing affordability challenges, with some areas, like Noida and Greater Noida, showing promising sales growth despite a nationwide dip in overall sales.
The report further pointed out that key contributors like Gurugram (144% increase YoY), Greater Noida (54% increase YoY), and Noida (3% increase YoY) were vital to the success of the Delhi NCR market, with sales growing even amid a 26% YoY dip in national sales numbers.
Despite the surge in property values, concerns over affordability are growing. With inflationary pressures and slowing economic growth, experts suggest that policy reforms are needed to ensure the housing market remains accessible for India’s middle class. Dhruv Agarwala, Group CEO of Housing.com and PropTiger.com, highlighted that tweaks in taxation laws in the upcoming Budget, along with rate cuts by the RBI, could help improve affordability in this highly competitive market.
“No doubt, this kind of price growth is indicative of underlying demand, growth prospects and a positive buyer sentiment. However, cost pressure might further affordability concerns in a country where a large part of the population relies on government subsidies for house purchases. Amid hardening inflation and slowing growth, the government must launch policy measures that take care of this crucial aspect to promote affordable housing. Positive tweaks in taxation laws in the upcoming Budget and rate cuts by the RBI could go a long way in ensuring greater affordability for India’s burgeoning Middle Class,” said Dhruv Agarwala, Group CEO, Housing.com & Proptiger.com.