Supply Increases 52% While Demand Drops by 12% Across NCR Real Estate Market

New Delhi, November 15, 2024 – The National Capital Region (NCR) has experienced a remarkable surge in housing prices, with an overall increase of 137% since 2019, according to the latest report by PropEquity. This rapid growth is attributed to factors such as renewed investor confidence, rising land and construction costs, and a wave of infrastructure development. Cities like Noida, Gurugram, Ghaziabad, and Greater Noida have seen property prices more than double over the past five years, reshaping the NCR real estate market.

Noida Leads Price Growth with 152% Increase

PropEquity’s data reveals that Noida topped the region with a 152% jump in housing prices, soaring from Rs 5,910 per sq. ft. in 2019 to Rs 14,946 per sq. ft. by September 2024. Ghaziabad followed closely with a 139% increase, while Gurugram and Greater Noida saw gains of 135% and 121%, respectively. Each city has benefited significantly from large-scale infrastructure projects and government efforts to support real estate development.

According to Samir Jasuja, Founder and CEO of PropEquity, “The NCR is undergoing an unprecedented infrastructure boom with projects like the Noida International Airport, Dwarka Expressway, Delhi-Meerut Expressway, and metro expansion driving real estate momentum. Investor confidence has been further bolstered by the pandemic, with buyers gravitating towards the stability of real estate. Branded developers and government interventions are further instilling confidence among investors and homebuyers.”

Supply Soars, but Absorption Rates Lag Behind

The report also notes a substantial 52% increase in overall housing supply in the NCR since 2019, with notable city-level differences. Gurugram recorded a staggering 222% rise in housing supply, while Greater Noida and Ghaziabad saw increases of 36% and 14%, respectively. Conversely, Noida’s supply dropped by 41%, indicating a shift in development focus.

However, absorption—the rate at which homes are sold—has declined by 12% across the NCR, with Noida, Ghaziabad, and Greater Noida witnessing significant drops. Only Gurugram defied this trend with a 157% rise in absorption, showcasing its growing appeal among homebuyers and investors.

UP Government Efforts Reducing Unsold Inventory

PropEquity’s report also highlighted a reduction in unsold housing inventory across the NCR, thanks to the Uttar Pradesh government’s initiatives aimed at resolving stalled projects. Noida, Greater Noida, and Ghaziabad saw notable declines in unsold units, reflecting progress in tackling the backlog of incomplete developments.

Greater Noida currently has 167 stalled projects totaling 74,645 units, followed by Gurugram with 158 stalled projects (52,509 units), Noida with 103 stalled projects (41,438 units), and Ghaziabad with 50 stalled projects (15,278 units). These figures underscore ongoing challenges in the market despite the recent growth in prices.

Looking Ahead: Confidence High Among Investors and Developers

With continued investment in infrastructure and positive developments in the real estate market, the NCR is expected to remain a favorable destination for real estate investments. Jasuja concluded, “We anticipate the NCR market will continue to outperform other Tier 1 cities, attracting further investments and expansion from major developers.”

PropEquity, owned by NSE-listed P.E. Analytics Ltd., is India’s largest online real estate data and analytics platform, cataloging over 1,70,000 projects from more than 57,000 developers across 44 cities. With over 17 years of data and approximately 700 projects added monthly, PropEquity provides unparalleled insights and business intelligence in India’s real estate market.