Delhi NCR: India’s residential real estate sector has entered a new era of growth, as highlighted by the latest 1 Finance Housing Total Return Index. Over the past five years, average housing prices across major Indian cities have soared by 48%, marking one of the most robust growth phases in the country’s property market history. Yet, amid this nationwide boom, Delhi-NCR stands out for a different reason—its remarkable 30% decline in unsold inventory, signaling a surge in demand and a unique market dynamic
Mr. Rakesh Malhotra, Founder and Chairman, PRIME Developments
Delhi-NCR: Demand Outpaces Supply
While cities like Bengaluru and Mumbai have made headlines for record price jumps and costliness, Delhi-NCR’s story is about absorption and efficiency. The region’s unsold housing inventory has dropped sharply, with a 30% reduction over the last five years, even as prices have risen by around 31% in the past year alone. This trend is in stark contrast to cities such as Hyderabad, where unsold stock has ballooned, or Chennai, where new launches outpace sales.
Luxury Segment Fuels Growth
One of the main forces behind this change has been the luxury housing market in Delhi-NCR. The region’s overall house sales value surpassed Hyderabad and Mumbai in 2024, rising 63% year over year to ₹1.53 lakh crore. More than two-thirds of this value came from Gurugram alone, driven by the strong demand for upscale buildings. This increase is supported by shifting post-pandemic buyer tastes, as families look for bigger homes with better amenities.
Mr. Rakesh Malhotra, founder and chairman of PRIME Developments said, “Delhi NCR’s real estate market is witnessing a remarkable transformation, as evidenced by a 30% decline in unsold inventory—an unmistakable indicator of heightened demand and robust absorption rates. Gurugram, in particular, exemplifies this trend with its limited inventory in prime locations and vigorous value appreciation, especially in sectors adjacent to new infrastructure projects. Enhanced connectivity, the proliferation of luxury and sustainable housing, and a rising preference for integrated townships are driving this momentum. The surge of high-net-worth individuals (HNIs) and non-resident Indians (NRIs) seeking premium amenities and long-term investment opportunities further underscores Gurugram’s appeal. These factors have positioned Gurugram as one of the most dynamic and attractive real estate destinations within Delhi NCR’s thriving, high-demand market.”
Outlook: A Market in Balance
The sharp decline in unsold inventory, combined with robust price appreciation, positions Delhi-NCR as one of India’s healthiest real estate markets in 2025. The developers of NCR have handled launches carefully, maintaining supply in line with actual end-user demand, in contrast to other metro areas that are struggling with overstock. Delhi-NCR’s emphasis on quality, prompt delivery, and opulent options guarantees that it will continue to draw in both investors and purchasers as the national housing cycle develops.
In summary, while India’s housing market celebrates a historic price rally, Delhi-NCR’s realty sector is scripting its own success story—one defined by high demand, falling inventory, and a thriving luxury segment.
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