- Housing prices in smaller cities rose by 63% over five years, while Delhi-NCR saw a 193% surge over a decade.
New Delhi: The demand for homes is no longer confined to major metropolises like; Delhi, Mumbai, and Bengaluru. According to a report by CII and Knight Frank, residential property prices in 11 emerging cities rose by an average of 63% between 2021 and 2026, whereas prices in the country’s top eight metros increased by 42% during the same period.
In Delhi-NCR, residential property prices surged by approximately 193% between 2015 and 2025. Factors such as limited land availability, rising construction costs, improved connectivity, and a desire for better homes driven by increasing incomes have pushed prices upward. Rising demand in several emerging cities like; Lucknow and micro-markets within NCR highlights the evolving landscape of the real estate market.
Connectivity emerges as the biggest strength for Noida and Greater Noida
Noida, Greater Noida, Greater Noida West, and Yamuna Expressway have emerged as key alternative markets of Gurugram in the NCR where homebuyers seek a superior lifestyle alongside a home. Beyond price and location, there is now growing demand for amenities such as construction quality, home size, clubhouses, gyms, green spaces, security, parking, and maintenance services.
In Noida and Greater Noida, projects linked to expressways, the metro, and the upcoming Jewar Airport have bolstered demand in several areas. Meanwhile, Gurugram continues to see demand for premium and luxury housing, driven by employment hubs and excellent road connectivity. On these grounds, Lucknow is the next big region of real estate where demand is rising with new launches.
Rising demand for homes priced above ₹1 crore
In the first half of 2026, the share of premium homes priced above ₹1 crore reached 54% of total residential sales in the country’s major cities, up from 49% the previous year. The surge in smaller cities holds a message for the NCR—
According to real estate experts, rapidly rising prices in smaller cities indicate that the residential market is expanding beyond metropolitan areas. People are willing to buy homes and invest locally in regions where amenities such as employment opportunities, road networks, metro connectivity, air links, education, and healthcare facilities are developing rapidly.
Consequently, developers in the NCR face mounting challenges. Amidst rising land and construction costs, it will be crucial to keep prices in check while offering superior amenities to buyers. In the future, delivering homes with high quality and reliability will be more important than merely selling expensive properties.
Navneet D, Director, GYGY Group says, Real estate demand in the NCR is no longer confined to investment purposes. Buyers are prioritizing better lifestyles, excellent connectivity, and high-quality homes. This reflects a robust demand for premium, high-quality housing. Therefore, it is essential to focus on timely project completion and maintaining construction quality.
Rakesh Kumar Agarwal, CMD of AIGIN says,Buyer sentiment in the NCR has shifted significantly over the past few years. Beyond just the project location, factors such as construction quality, actual home size, amenities, green spaces, and maintenance costs now play a pivotal role in purchasing decisions. While demand remains strong for projects with good connectivity, buyers are now far more price-conscious than before.
Geetanjali Khanna, Founder & MD of Rearco Pvt. Ltd notes a rising demand for spacious premium and luxury homes. However, buyers are now evaluating projects beyond just the price point; they are scrutinizing the overall layout, unique and distinctive amenities, maintenance standards, parking facilities, and security measures. Therefore, striking a balance between price and product quality will be paramount for developers.
According to Himanshu Garg, Director, RG Group, the NCR real estate market has entered a robust and more mature phase. Factors such as improved connectivity, new infrastructure projects, and emerging employment hubs in Gurugram, Noida, and Greater Noida are driving this demand. Consequently, it is crucial for developers to focus on delivering high-quality projects with excellent amenities and ensuring timely handover.
According to Suresh Garg, CMD of Nirala World,” Amid rising prices in the residential market, buyers are no longer making decisions based solely on carpet area or the starting price; they are also evaluating the actual value they receive in return for their investment. This shift has become particularly significant following the 193 per cent rise in prices across the NCR over the last decade. Consequently, factors such as project layout, useful amenities, maintenance, and the property’s future utility are becoming increasingly crucial in the purchasing decision.”
Rakesh Singhal, Founder of Shri KB Group, says, “Residential demand in the NCR is no longer confined to a few select prime areas. Buyers are seeking micro-markets within their budgets that offer scope for the expansion of infrastructure and business activities in the coming years. The 63 per cent rise in housing prices in emerging cities over the past five years reflects this shift. Consequently, the next market imperative for developers will be to design projects tailored to diverse income groups and specific needs.”
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