Soaring Residential Real Estate Prices in NCR: A Deep Dive into the Hottest Markets
Highest-Priced Residential Real Estate Markets in Delhi NCR: Areas Experiencing the Greatest Price Increases Revealed
In the bustling cities of NCR, the average residential real estate price in Greater Noida has experienced a staggering 98% surge to Rs 6,600 per square foot over the past five years, according to an ANAROCK report. In Q1 of 2020, the average price in Greater Noida stood at a comparatively modest Rs 3,340 per square foot.
Noida, too, has witnessed impressive growth, with residential property rates rising by 92% to Rs 9,200 per square foot in Q1 of 2025, compared to Rs 4,795 per square foot in Q1 of 2020.
Among the NCR cities, Delhi has remained the priciest, with an average residential property rate of Rs 25,200 per square foot in Q1 of this year. In Q1 of 2020, the average rate was Rs 18,200 - a 38% appreciation.
Following closely behind, Gurugram's residential real estate market is the second-most expensive, with an average rate of Rs 11,300 per square foot in 2025, compared to Rs 6,150 per square foot in the initial quarter of 2020 - an increase of 84%.
Faridabad, on the other hand, offers the most affordable residential real estate market, with an average rate of Rs 4,800 per square foot. Despite the increase, rates have jumped by 50% from Q1 of 2020, as revealed by the ANAROCK report.
For those seeking further insights, our article on "Noida real estate prices skyrocket in 3 yrs! Average growth rate surpasses Mumbai, other metros" provides more in-depth analysis.
Santhosh Kumar, Vice Chairman of ANAROCK Group, comments on the dramatic growth: "Greater Noida recorded an astounding 98% appreciation among all NCR cities in the last five years - average prices here rose from INR 3,340/sq.ft. in Q1 2020 to Rs 6,600/sq.ft. by Q1 2025-end. Noida recorded the second-best appreciation of 92% in the same period - from INR 4,795/sq.ft in Q1 2020 to Rs 9,200/sq.ft by Q1 2025. Gurugram witnessed an 84% jump - from Rs 6,150/sq.ft. to Rs 11,300 per sq. ft. in this period."
Unsold Inventory Plummets Across NCR
Interestingly, the NCR market, once home to the highest unsold stock in the country, has seen a remarkable decline over the past five years. Despite significant price increases across NCR, unsold inventory in the region has dropped by a substantial 51%, falling from around 1,73,117 units at the end of Q1 in 2020 to approximately 84,500 units at the end of Q1 in 2025.
City by city, Noida recorded the most significant decline in its overall unsold stock, with a 72% drop from approximately 18,148 units at the end of Q1 in 2020 to approximately 5,012 units at the end of Q1 in 2025. Ghaziabad and Greater Noida also experienced substantial declines, with drops of 58% and 56%, respectively.
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According to Santhosh Kumar, "the report further highlights that strong sales velocity over the years, along with significant new launches, reduced the inventory overhang to just 17 months by the end of Q1 2025. This is a remarkable drop from the peak of 88 months about five years ago."
The NCR residential market saw a new supply addition of over 53,000 units in 2024, almost 44% higher than the launches in 2023. An interesting shift observed in the past three years post-COVID-19 is the increased focus on luxury and ultra-luxury housing, making up the majority of supply shares.
The Driving Forces Behind the Real Estate Boom
The extraordinary growth in residential real estate prices across NCR cities in the past five years can be attributed to several interconnected factors:
- Infrastructure Development: Improved connectivity, such as extended metro networks and expressways, elevates the appeal of Greater Noida, Noida, and Gurugram as satellite cities.
- Demand-Supply Dynamics: The residential market shifted toward premium/luxury segments after 2020, driven by buyers seeking spacious homes with modern amenities. This has reduced the supply in mid-range and affordable categories, heightening competition and fueling price escalation in high-end properties.
- Urbanization and Employment Hubs: The growth of commercial corridors (like Noida's IT parks and Gurugram's corporate zones) has attracted a steady influx of professionals, creating sustained housing demand.
- Regulatory and Legal Factors: Supreme Court rulings (such as penalties for delayed project delivery) have pressured developers to expedite commitments, potentially increasing costs. On the other hand, stricter enforcement of consumer protection laws may have bolstered buyer confidence, indirectly contributing to price stability.
- Investor Sentiment: Greater Noida's lower base prices (Rs 3,340-6,600/sq.ft.) in 2020 made it an appealing location for speculative investments, amplified by predictions of long-term growth in the NCR region.
- The average residential real estate price in Greater Noida, which was Rs 3,340 per square foot in Q1 of 2020, has skyrocketed to Rs 6,600 per square foot by Q1 of 2025, a staggering 98% surge.
- In Q1 of 2025, the average residential property rate in Noida stood at Rs 9,200 per square foot, a significant increase of 92% compared to Rs 4,795 per square foot in Q1 of 2020.
- Among the NCR cities, Delhi has remained the priciest with an average rate of Rs 25,200 per square foot in Q1, followed by Gurugram's average rate of Rs 11,300 per square foot, a 84% appreciation from five years ago.
- Faridabad, despite a 50% increase, offers the most affordable residential real estate market in NCR as per the ANAROCK report.
- Unsold inventory across NCR dropped by 51% over the past five years, signifying a healthy housing market in the region.
- In Q1 of 2025, the NCR residential market saw a new supply addition of over 53,000 units, making it a thriving market for both investors and homebuyers alike.
