Noida leads NCR's price surge: Real estate rates are up 152% in 5 years

The real estate markets in Gurugram, Noida, Greater Noida, and Ghaziabad have seen substantial price increases over the past five years, with prices more than doubling in some areas.

The real estate market in the National Capital Region (NCR) has witnessed a significant price surge over the past five years. According to a recent report by PropEquity, the weighted average price of new residential projects in Gurugram, Noida, Greater Noida, and Ghaziabad has more than doubled.

 

• Noida has seen the largest increase, with prices rising by 152%, from Rs 5,910 per sq ft in 2019 to Rs 14,946 per sq ft in September 2024.
• Ghaziabad's prices rose by 139%, from Rs 3,691 per sq ft to Rs 8,823 per sq ft.
• Gurugram saw a 135% increase, with prices rising from Rs 8,299 per sq ft in 2019 to Rs 19,535 per sq ft in 2024.
• Greater Noida saw a 121% increase, from Rs 3,900 per sq ft to Rs 8,601 per sq ft.

 

Reasons for Price Growth:

 

Infrastructural Developments: One of the key reasons cited for the rise in real estate prices in NCR is the significant development in infrastructure. These include:

• The Noida International Airport (which is expected to increase demand for housing in the region).
• The Dwarka Expressway, Delhi-Meerut Expressway, and Metro expansion, all of which enhance connectivity and improve the region's accessibility.
• The Rapid Rail, another infrastructure project, is expected to improve commuting

 

Pandemic Impact: The COVID-19 pandemic shifted people’s preferences towards real estate, with more individuals and investors moving funds into property as a safer investment. This helped sustain strong demand even as prices increased.

 

Increased Demand: Strong demand from both end-users and investors has fueled the growth in real estate prices.

 

Limited Supply: Limited land availability and stringent regulatory norms have constrained supply, further driving up prices.

Changing Consumer Preferences: Homebuyers are increasingly seeking larger, more luxurious homes, which has led to a shift in demand towards premium and luxury segments.

 

"The NCR is witnessing an infrastructural metamorphosis never seen in decades with developments like Noida International Airport, Dwarka Expressway, Delhi-Meerut expressway, Rapid rail, metro expansion among others providing the much-needed fillip to all segments of real estate," said Samir Jasuja, Founder and CEO of PropEquity.

 

Gurugram-based property consulting firm InfraMantra founder Shiwang Suraj said the return on investment from real estate has surpassed returns from all other investment tools.

 

"Demand continues to be robust even at elevated price points as is evident from the fall in property conversion time," he added.

 

"The significant rise in housing prices across NCR since 2019, reflects the region's growing appeal and evolving real estate landscape." As demand continues to outpace supply, he said, "We have witnessed a surge in homebuyers who are increasingly looking for long-term investments in robust, well-connected locations in Delhi NCR," said Abhishek Trehan, Executive Director of Trehan Iris.

 

"Key infrastructure projects like Dwarka Expressway have driven demand and price growth. While housing prices have risen in line with increased land and material costs, we anticipate future stability or modest growth," said  Arjun Nanda, Founder & CEO of real estate consultancy firm Your Home (YHATAW).  With inputs from PTI