Delhi-NCR witnessed the lowest increase in property prices in last decade: Report

The report also stated that the price growth has gradually stagnated across the country, although Pune witnessed the highest price growth of 67% in the last decade.

The National Capital Region (NCR), including Delhi, Gurugram, Noida, Greater Noida, Faridabad and adjoining areas, witnessed the lowest decadal increase in the price of residential housing at only 19% even though the average increase in property prices in the top seven real estate markets across the country was around 38%, found a report released by real estate consultancy Anarock.

The report also stated that the price growth has gradually stagnated across the country, although Pune witnessed the highest price growth of 67% in the last decade.

Real estate experts in Gurugram also said that barring steep spikes in price of properties between the years 2012 and 2014, the city did not witness any sharp rise in prices of residential housing as demand was low and the delay in project delivery also dampened the confidence of home buyers. Also the tendency of speculative buying and selling of houses as a commodity have also stopped due to exit of investors from the trade, thereby stabilizing the prices, they added.

Prashant Thakur, director and head of research, Anarock property consultants, said, “While question of affordability still looms large in the minds of the Indian homebuyers, property price growth has gradually stagnated. The value of property, defined by size and location, is now distinctly higher.”

As per the data shared by the firm, NCR saw the least increase in property prices and it stood at 19% between 2010-Q1 2020 period. The average price recorded in the region in 2010 was Rs 3,850 per square foot (sq ft)while in Q1 2020, it had increased to Rs 4,580 per sq. ft.

The report further stated that in the initial 5-year period between 2010 to 2014, average property prices increased by anywhere between 5 and 7% year on year. Thereafter, growth began to slow down significantly, ranging between 0 and 2%, it added.

The report further stated that average price in Pune rose by 67% in the decade, while in Bangalore it saw a 49% rise. Hyderbad witnessed a 45% increase in property prices while Kolkata saw a 44% rise in the prices of properties. The Mumbai metropolitan region saw a 33% increase in the prices of property while Chennai witnessed only 20% hike in the 2010 to 2020 period.

Sanjay Sharma, a city-based real consultant, said that Delhi-NCR, including Gurugram, has been under a prolonged slowdown. Further, there is an oversupply in the real estate market in the region, which is leading to a lack in consumer demand and a stagnation in prices. “The pandemic will further complicate the matters,” he added.