NCR real estate market
When demand for a product falls, its price falls, but a completely different trend has been seen in real estate. The demand for houses has decreased but property prices have seen a record increase in the last one year. According to real estate consultant Anarock, property sales in the National Capital Region (NCR) declined by -6% year-on-year but prices saw a huge jump of 30%. A total of 65,625 houses were sold in NCR in the year 2023. At the same time, it is expected to decrease to 61,900 in 2024. Despite this, there has been a huge jump of 30 percent in the prices of houses. Apart from NCR, demand for property has fallen in Pune, Chennai, Kolkata and Hyderabad.
Real estate sector experts say that the main reason behind the falling demand for property is the skyrocketing prices of budget houses. The middle class is now unable to buy a house even if it wants to. The market for affordable property has ended. Till a few years ago, 2BHK flats were easily available in Noida and Noida Extension for Rs 35 to 60 lakhs, which has now ended. Therefore, end users are not able to buy houses even if they want to. The property market is being run on the strength of a handful of investors.
Demand for houses in cities along with the country
city name
2024
2023
, change in (2023 versus 2024)
NCR
61,900
65,625
-6%
mmr
1,55,335
1,53,870
1%
Bengaluru
65,230
63,980
2%
Pune
81,090
86,680
-6%
Hyderabad
58,540
61,715
-5%
Chennai
19,220
21,630
-11%
Kolkata
18,335
23,030
-20%
Total
4,59,650
4,76,530
-4%
Source: Anarock
Sales estimated to decline to around 4.6 lakh in 7 cities
This year, house sales in seven major cities of the country are expected to decline by four percent to about 4.6 lakh units. In terms of value, sales are likely to increase by 16 percent to Rs 5.68 lakh crore. According to real estate consultant Anarock, average house prices in seven major cities increased by 21 percent this year due to rising prices of land, labor and some construction raw materials. Anarock, one of the leading housing brokerage companies in India, attributed the decline in sales volume in 2024 to the delay in regulatory approvals between the general and assembly elections and reduced offers of housing projects. Yet rising housing prices outpaced sales growth in value terms this year.
price increase
City Of Name
Q4-2024
Q4-2023
, change in (Q4-2023 Vs Q4-2024)
NCR
7,550
5,800
30%
mmr
16,600
13,700
21%
Bengaluru
8,380
6,550
28%
Pune
7,720
6,750
14%
Hyderabad
7,300
5,750
27%
Chennai
6,790
5,950
14%
Kolkata
5,820
5,150
13%
Total
8,590
7,080
21%
Source: Anarock
There is also a forecast of decline in the supply of new houses in the property market.
Anarock data on the supply of new residential properties shows a seven per cent decline to 4,12,520 units in 2024 compared to 4,45,770 units in 2023. On the figures, Anarock Chairman Anuj Puri said that 2024 has been a mixed year for the Indian real estate sector. Apart from the negative impact of the general and assembly elections, there was also a decline in project approvals which has impacted the supply of new housing. He said that although there was a slight decline in sales compared to 2023, this was offset by a 16 percent increase in total selling value due to increase in average price and increase in unit size. Puri said the average price in the top seven cities saw an annual increase of 21 percent in the year 2024.
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