Residential sales in Delhi-NCR moderated in the second quarter as cautious homebuying sentiment weighed on demand, although prices and rents continued to rise, according to JLL.

A total of 10,021 residential units were sold during Q2, down 9% year-on-year. Gurgaon accounted for the largest share at 43%, with demand concentrated along Dwarka Expressway, Golf Course Extension Road, New Gurgaon and Manesar.

Noida represented 36% of overall sales, followed by Ghaziabad at 18%. JLL said sales momentum remained healthy in Ghaziabad, Faridabad and Delhi, supported by a steady flow of new projects that attracted buyers seeking newer housing products.

Residential launches also declined, with more than 11,250 units launched during the quarter, down 16% year-on-year. Gurgaon accounted for 45% of new supply, followed by Ghaziabad at 30% and Noida at 17%. Delhi and Faridabad recorded quarterly increases in new supply.

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New launches were concentrated along established growth corridors, particularly Dwarka Expressway in Gurgaon and NH-24 in Ghaziabad. JLL said developers including Oberoi Realty, Signature Global and Sobha Developers led launch activity.

Despite softer transaction and launch volumes, residential prices continued to increase. Average capital values reached INR 8,333 per sq ft, up 1.9% quarter-on-quarter and 9.4% year-on-year.

Gurgaon recorded the strongest annual price growth at 10%, with values rising 1.9% quarter-on-quarter. Noida followed with quarterly growth of 1.8% and annual growth of 7.1%. Ghaziabad and Faridabad recorded more limited quarterly increases of 1.4%, while Delhi values rose 1%.

Rental growth remained steady across the region, with average rents increasing 1.3% quarter-on-quarter and 4.7% year-on-year.

Looking ahead, JLL expects residential launches to moderate as slower sales velocity, rising prices and easing demand momentum encourage developers to take a more measured approach to new supply.

Gurgaon and Noida are expected to remain the main drivers of Delhi NCR’s residential price growth, supported by buyer demand and infrastructure-led development. JLL expects capital values to continue rising, although growth in Faridabad and Delhi is likely to remain more moderate.