Ghaziabad was the only city in Delhi-NCR to experience a decline in residential property prices over the past year, according to a recent report by Kotak Institutional Equities. While housing rates have surged across most of the National Capital Region, prices in Ghaziabad fell by 17% year-on-year, settling at an average of ₹9,210 per square foot.
This price drop positions Ghaziabad as a potentially more affordable option for homebuyers, especially with the festive season approaching. The report attributes this decline, in part, to a substantial unsold inventory in the city. Ghaziabad currently holds 31.1 million square feet of unsold residential property, which includes 11.9 million square feet tied to stalled projects.
NCR Markets See Significant Appreciation
In stark contrast to Ghaziabad, other major NCR markets recorded substantial annual price increases:
- Noida: Remaining the most expensive market in NCR, Noida saw property prices jump by 61% year-on-year, reaching ₹25,805 per square foot.
- New Delhi: The New Delhi area experienced an even sharper increase, with prices surging 94% to ₹24,917 per square foot.
- Faridabad: This market witnessed the most dramatic annual rise among all covered cities, with prices skyrocketing 264% to ₹11,242 per square foot.
- Gurugram: Property values in Gurugram increased by 6% annually, reaching ₹21,538 per square foot.
- Greater Noida: This region recorded an 18% rise, with prices now at ₹12,826 per square foot.
The report highlights a growing divergence within the NCR housing market, with Ghaziabad standing out against a backdrop of widespread appreciation.
Broader NCR Real Estate Trends
Beyond individual city performances, the Kotak Institutional Equities report also indicates a general slowdown in overall NCR housing activity. Sales volumes decreased by 27% year-on-year, totaling 23.5 million square feet. Similarly, new project launches saw a significant decline of 45%, down to 21.2 million square feet.
Concurrently, unsold inventory across the entire NCR increased by 7%, reaching 218 million square feet. At the current pace of sales, it would take approximately 2.3 years to clear the existing inventory.
At the national level, the report noted that real estate sector growth over the past two years has been primarily driven by higher property prices rather than an increase in sales volumes, with industry volumes remaining broadly stable for the past three years.