Affordable housing prices jump 267% in Delhi-NCR in 20 years
Property prices in Delhi-NCR’s affordable housing segment have risen by 267% and land rates by 492% over the past two decades, underlining the region’s strong capital appreciation and market potential.
Land rates have surged from Rs 1,300 to Rs 7,700 per square foot during the same period, registering a steep 492% rise. (Image: Freepik)
The rise of micro-markets in Delhi has led to the appreciation of prices of real estate in the region. Due to various reasons such as reinvigorated interest post-pandemic, an increasing migrant population, and government schemes such as PMAY, the market is experiencing demand-pull inflation, which in turn is leading to higher property prices, particularly for the affordable housing segment.
Over the past two decades, the Delhi-NCR region, particularly the affordable housing market, has seen impressive growth in property prices. The floor rate per square foot has risen from Rs 1,500 in 2005 to Rs 5,500 in 2024—a 267% increase. Meanwhile, land rates have surged from Rs 1,300 to Rs 7,700 per square foot during the same period, registering a steep 492% rise. These numbers underline the robust capital appreciation across the region’s emerging micro-markets.
Prices (₹) change in Floor rate and land rate in the last 2 decades
With the support of banks and HFCs, Delhi-NCR has expanded its boundaries towards fulfilling the “Housing for All” mission. As a result, several new residential options have opened up all around the city, such as Kakrola, Rajapuri, Mahavir Enclave, Chander Vihar, Palam, Amber Enclave, Amberhai Village, Qutub Enclave, Shyam Vihar, and Bamnoli, to name just a few.
Affordability at a Glance:
Manish Jaiswal, Managing Director and Chief Executive Officer, Grihum, said, “At a time when India’s affordable housing sector is gaining structural momentum—driven by rurbanisation, income shifts, and PMAY—the ‘Grihum Guide to Affordable Housing: Delhi-NCR Edition’ arrives as a timely and field-rooted resource. Built entirely ground-up by our in-house civil engineers, it uniquely evaluates the asset itself—not just the borrower. By decoding build quality, informality, and location-specific risks, it shines a spotlight on Loss Given Default (LGD), a core yet under-analysed risk. While Probability of Default (PD) reflects borrower behaviour, LGD is fundamentally linked to collateral quality. This guide empowers lenders with sharper visibility on Net Credit Loss (NCL) drivers—improving underwriting, pricing, and recovery outcomes. For any housing finance player serious about sustainable growth, this is a must-read blueprint.”
The study also simplifies the various complexities of the housing industry and gives specific tips and takeaways. As the affordable housing customer is value conscious, it analyses the affordability of the region’s demographic by factoring in their annual income, and recommends optimal EMI amounts and areas within the region that can be considered for purchase. In addition, the report highlights challenges faced by the Delhi-NCR region, such as the pressure on transport systems, healthcare and sanitation. It also proposes solutions, such as a fast-track system with strict policies and limits to ensure quick resolution of issues.
Delhi-NCR comprises not only the capital of India but is also a bustling territory encompassing parts of Haryana, Uttar Pradesh, and Rajasthan.
