Residential property prices in Ghaziabad are steadily declining. Prices have fallen by up to 17% year-on-year. This is good news for buyers planning to purchase a home in the city.

Delhi-NCR real estate market

If you're planning to buy a home in Delhi-NCR, this news is for you. Ghaziabad is the only city in Delhi-NCR where home prices declined last year. This isn't our opinion, but a recent report by Kotak Institutional Equities reveals this. While home prices have increased in Faridabad, Noida, and Delhi, prices in Ghaziabad have fallen 17% year-on-year to Rs 9,210 per square foot.

Why did prices fall in Ghaziabad?

Kotak's report notes that Ghaziabad could become a more affordable option for homebuyers in the Delhi-NCR property market, considering the upcoming festive season. While home prices are steadily rising, this decline in prices is a sharp departure from the general trend.

According to the report, Ghaziabad currently has 31.1 million square feet of unsold inventory, of which 11.9 million square feet is linked to stalled projects. This large amount of unsold inventory in the city is putting pressure on property prices.

However, sales of mid-segment and affordable housing have seen a sharp improvement due to falling prices, with Ghaziabad alone accounting for 15% of total sales in the region. This presents a great opportunity for those looking for a budget home this festive season.

Where did the price increase the most?

Property prices in Gurugram increased 6% year-on-year to ₹21,538 per square foot, while Greater Noida saw an 18% increase to ₹12,826 per square foot. The highest increase in the region was seen in Faridabad, where prices increased 264% year-on-year to ₹11,242 per square foot.

In Noida , there's strong demand for luxury projects with larger configurations like 3BHK and 4BHK and world-class amenities. In Delhi-NCR, prices are rising rapidly due to a decline in new project launches and a distorted demand-supply ratio. However, sales volume here declined 27% year-on-year to 23.5 million square feet, while new launches fell 45% to 21.2 million square feet.