However, still short of levels before pandemic
Delhi NCR reported a healthy growth of 48% Y-o-Y in housing sales at 9,101 units, making it the best quarter so far in the current calendar year, with demand on track to outstrip 2020 numbers. However, residential sales in 2021 are still likely to fall short of the pre-pandemic levels.
According to Knight Frank India, the impressive sales numbers reported by Delhi NCR was on the back of flat residential prices coupled with developers offering flexible deferred payments and mega discounts, among others.
Like most sectors, the real estate industry also looked at defining the alternative channels of operability and re-engineered the sales channels with prospective buyers. The pricing dynamics were re-looked and offers such as flexible deferred payments, mega-discounts and free parking or furnishing were floated around by multiple developers from NCR, Knight Frank India chairman Shishir Baijal said.
“We can say that the market (NCR) has seen positive movement pointing towards healthy growth in future. The fact that the percentage of luxury in overall sales is increasing and other segments getting the desired attention proves that the market here is working as per the demand,” he added.
Home sales in 2021 is on track to outstrip the demand in the last calendar year. In 2021 so far, Delhi NCR has recorded sales of 20,575 units compared to 21,234 units in 2020 calendar year, with the April-June quarter being a washout as the country was under a nationwide lockdown due to the pandemic.
However, 2021 numbers are most likely to fall short of the robust demand recorded in 2019 calendar year. The top eight markets in the country had reported record residential sales of 42,827 units in 2019.
Knight Frank pointed out that the weighted average residential prices in the NCR market remained stable during the quarter. On a Y-o-Y basis prices fell marginally by 1%, while they were stagnant on a sequential basis.
Across the top eight cities too, the September quarter witnessed robust sales. Home sales grew 92% Y-o-Y to 64,010 units across the top markets in Q3 2021, while new launches rose 90% Y-o-Y to 58,967 units. A significant recovery compared to 27,232 launches and 27,453 sales in Q2 2021.
Stamp duty cuts were a significant intervention applied by several state governments to spark a sharp recovery in sales volumes. These measures have convinced the fence sitters to make the home buying decision, Knight Frank India chief economist Rajani Sinha said, “Going forward with the economy improving, interest rate remaining low and overall affordability improving, the sweet spot for home buying will be sustained Given the strong positive impact of real estate sector recovery on overall economy, the Central and state governments should look at policy measures to further stimulate housing demand,” she noted.