Ghaziabad was the only city in Delhi-NCR to record a decline in residential property prices over the past year, according to a recent report by Kotak Institutional Equities. While housing prices have surged across most of the region, rates in Ghaziabad fell 17 per cent year-on-year to ₹9,210 per sq ft.

With the festive season approaching, the report suggested that Ghaziabad could emerge as a more affordable option for homebuyers in the Delhi-NCR property market. The fall in prices stands in sharp contrast to the broader NCR trend, where housing rates have increased significantly.

Ghaziabad has unsold inventory

The report said Ghaziabad currently has 31.1 million sq ft of unsold residential inventory, including 11.9 million sq ft linked to stalled projects. The sizeable inventory could be one of the factors weighing on property prices in the city.

Meanwhile, other major NCR markets recorded substantial annual price increases. Noida remained the most expensive market in NCR, with property prices rising 61 per cent year-on-year to ₹25,805 per sq ft. In the New Delhi area, prices jumped 94 per cent to ₹24,917 per sq ft.

Noida, Gurugram and Greater Noida see price gains

Property prices in Gurugram increased 6 per cent annually to ₹21,538 per sq ft, while Greater Noida recorded an 18 per cent rise to ₹12,826 per sq ft.

Faridabad witnessed the sharpest annual increase among the markets covered, with prices surging 264 per cent to ₹11,242 per sq ft.

The wide variation in price movements highlights the growing divergence within the NCR housing market, with Ghaziabad emerging as an outlier amid widespread price appreciation.

NCR home sales fall 27%

The report also pointed to a slowdown in NCR housing activity. Sales volumes fell 27 per cent year-on-year to 23.5 million sq ft, while new launches declined 45 per cent to 21.2 million sq ft.

At the same time, unsold inventory across NCR increased 7 per cent to 218 million sq ft. According to the report, it would take approximately 2.3 years to clear the existing inventory at the current pace of sales.

Housing growth driven by higher prices

At the national level, Kotak Institutional Equities said industry volumes have remained broadly within the same range for the past three years. The report added that real estate sector growth over the past two years has largely been driven by higher property prices rather than an increase in volumes.