Residential property prices in Delhi-NCR and the Mumbai Metropolitan Region (MMR) have seen a substantial increase of nearly 50% over the past five years, driven by robust demand and economic factors, according to a recent report by real estate consultancy Anarock. Despite the economic slowdown during the COVID-19 pandemic, Anarock attributes the rise in prices to steep hikes in construction costs and strong sales.
The survey indicates that from the first half of 2019 to the first half of 2024, house prices in the Mumbai area have increased by 49%. Five years ago, the average price per square foot was Rs 10,610, which has now risen to Rs 15,650. Over the past 18 months, more than 150,000 homes have been sold in Mumbai city and its suburbs, with 41% of these sales involving homes priced between Rs 1 crore and Rs 5 crores. Compared to the previous year, there has been an 11.5% increase in the sale of these homes.
In Delhi, the average rate per square foot was Rs 4,564, which has now risen to Rs 6,800. The primary reasons for this increase are the rising prices of construction materials and the growing number of home sales. During the COVID-19 period, the shift towards working from home prompted many to prioritize buying larger homes to expand their living spaces. Additionally, due to the high number of buyers in these two cities, there has been a significant reduction in the number of vacant homes.