Tracking The Rise And Fall Of Delhi’s Real Estate Market

Delhi, India’s capital city, is not one for the faint-hearted.

And yet, despite its harsh climate and living conditions, the percentage of migrants in the city has remained steady. The average migrant today is however better educated than he used to be, and more likely to have a white collar job.

So what does this mean for Delhi’s real estate? Unlike Mumbai or Bengaluru, where real estate prices continue to be on the rise, Delhi’s markets, rising so dramatically at one point, are currently in a slump. There are a number of contributing factors, but what it boils down to is that real estate prices are likely to fall further.

Read on to understand more about the city’s real estate market, and what the situation is currently.

The Initial Climb

The NCR Region and its development played a huge role in the initial increase of real estate prices in Delhi.

For starters, Gurgaon blossomed as a hub for upcoming commercial and residential projects. This combined with the growing popularity of the Delhi Metro, made life that much easier for the city’s inhabitants and proved to be an important factor in the initial boom in Delhi’s real estate. Naturally there was a growing demand for residential properties, especially with migrants being more financially empowered than they had ever been.

Even after the economic slump in 2008, real estate continued to grow, taking its place as one of the most sought after assets to invest in.

Newspapers reported over 20% growth in property prices in Delhi NCR in the year 2011, which at the time was one of the highest growth rates in real estate across the country. Vasundhara Enclave and Dwaraka, along with Gurgaon were the areas that showed the highest amount of growth.

A 2013 report disclosed how in the preceding years, the increase in real estate appreciation was almost 60%.

Gurgaon aside, Noida and Greater Noida also began developing at a rapid rate, with expansions in the residential sector, and a growing number of offices and educational institutions in the area.

The Steady Decline

Property prices had already started averaging in the main city in 2012, and this trend of stagnation began affecting the rest of NCR after 2013. Any rise in prices, if at all, was restrained to around 1-4%. The correction in real estate was soon to develop into a proper free fall as reported in August this year.

Murmurs of a possible crash in the market had begun in late 2013, especially with the rise of inflation in increase in costs of capital.

The inventory of unsold units continued to grow across India, reported at almost 50% between 2012-2014, especially in the NCR region. It wasn’t just the middle class that was holding off on buying houses, because this slump was particularly evident in the higher-end housing projects.

With a new government in power at the Centre, hopes rose for a boost to the market, but while there were tentative plans announced to improve investment, the market itself continued to fall.

In May this year the government cleared the land pooling policy to develop the outskirts of Delhi. When the policy was announced in 2013, there had been an increase in prices. But with its finalization, a correction upto 15-20% was predicted.

This prediction proved true as a decline in demand due to high prices led to a further correction in the market’s rates. In August 2015 lending by banks to commercial real estate projects had only grown about 7.5%, and overall prices were falling by around 20%. Launches were down by 68% and sales by 50% as reported by Firstpost.

If there is a chance for recovery, it will likely be after a while. Currently, the market trends indicate a further decline in prices, probably till the the market crashes. Up until then, it is very much a buyer’s market. So make the most of it and buy property in Delhi NCR by searching for it at, your one-stop destination for property search.

Shubham is a Technology and Smartphones lover from India. Pursuing his degree in IT engineering. Besides technology, he loves riding bike, chatting with friends. Feel free to add him on social networks.