Delhi-NCR news: Why are property prices, rentals skyrocketing? Know here

According to a recent survey, the real estate market in Delhi-NCR has experienced significant growth compared to other metro cities such as Mumbai, Chennai, Bengaluru, Kolkata, and Hyderabad. In the first quarter of 2023, Delhi-NCR witnessed a sharp 16% year-on-year rise in residential property prices, outpacing Kolkata and Bengaluru with 15% and 14% increases, respectively. The top eight cities in India, including Delhi-NCR, Bengaluru, Ahmedabad, Pune, Hyderabad, Chennai, Kolkata, and the Mumbai Metropolitan Region, collectively experienced an overall 8% increase in housing prices during the same period.

Notably, rental prices for residential properties have also seen exponential growth. The development of infrastructure, particularly in Noida and Gurugram, has played a significant role in boosting the real estate market in Delhi-NCR. This upswing follows a sluggish trend in the previous years.

The surge in home sales is driving up prices, supported by the availability of quality projects and reliable developers in the market. The real estate market in Delhi-NCR is so vibrant that housing prices in the Dwarka Expressway area increased by 59%, primarily due to the opening of the central peripheral road and the loop connecting Dwarka Expressway with NH-8. Similarly, Gurugram's Golf Course Road witnessed a 42% year-on-year price rise.

Surprisingly, despite the high housing prices, the demand has remained consistent. The real estate market in Delhi-NCR is expected to remain strong due to factors such as the pause in the rising repo rate and a healthy macroeconomic outlook.

Reports indicate that rental prices for homes in Delhi-NCR have surged by up to 40% in the past year. The lack of supply and increased demand from companies asking employees to return to offices are driving up rents in Noida and Gurugram.

During the Covid-19 pandemic, rental prices in Delhi-NCR had declined as many people relocated to their hometowns. However, with the pandemic subsiding, the resumption of full office hours and new hiring trends have increased the demand not only for new housing but also for rental housing in Delhi-NCR.