NCR market revives on the back of branded development. After a long wait, Prices finally take an upward trajectory.

NCR residential market is reviving on the back of branded development. The market will take a few quarters to recover from the impacts of Covid as the annual sales in FY21-22 are still 28% below the pre-Covid levels (FY19-20). Support by the government, reduction in circle rate and relaxation in regulation have helped uplift the real estate market. After many years, prices have finally seen an upward trajectory. New supply has reached normalcy level, with ~30.76 thousand units launched in the market. More than two-thirds of the launches are by established and branded developers.

FY 21-22 Highlights

33.07 thousand units were sold across NCR during FY 21-22, and 30.76 thousand units were launched. Sale and new supply have grown by 30% and 81% Y-O-Y. Price has appreciated by 7% Y-O-Y. The closing stock stands at 158.56 thousand units and months inventory at 58 months, 20 months lower than the last quarter.

Annual Sales
1,000 units
Unsold Inventory
1,000 units
New Supply
1,000 units
Saleable Price
Month Inventory Months
FY 20-2125.45 166.58 16.95 4,660 78
FY 21-22 33.07 158.56 30.764,977 58
Y-O-Y30%-5%81% 7%-20 months

Gurugram, Greater Noida and Noida have recorded the highest sales in NCR, together they account for 76% of total annual sales. Noida Extension in Greater Noida, Noida Sector-150, NH-24 and Raj Nagar Extension in Ghaziabad and Gurugram Sector-81 are the most sought-after locations in NCR. These micro-markets house large townships and offer seamless connectivity. Of the 30.76 thousand units were launched in NCR in Q3 FY 21-22, Gurugram alone accounts for 72% of the total new supply.

The NCR market is dominated by 2BHK and 3BHK typology, together they account for 72% of the total sales. The demand for low-density development and independent floors is gaining traction, as people are now looking for larger spaces.

Affordable development drives demand in NCR market. Maximum sales have been observed in INR 20-40 Lac cost bracket. Ghaziabad, Greater Noida, Bhiwadi and Noida are the main centers for development under the PMAY schemes