Delhi NCR recorded one of the most profitable quarters in the last two years with housing sales volume registering over 100 percent growth, YoY, according to the 99acre Insite Report.
Low home financing rates, a growing job market and the waning pandemic with meek risk of further disruptions created a favourable environment for homebuyers to re-enter the market. Noida and Gurgaon witnessed the highest housing demand and sales in the entire region.
Units configured as 2BHK and 3BHK apartments clocked maximum buyer interest. The luxury segment was also seen recording more takers than the previous many quarters. Another trend worth specifying is the rediscovered affinity of Delhi NCR homebuyers for independent plots and villas.
Whilst unsold inventory stood slightly above one lakh housing units in Delhi NCR, Gurgaon captured over 55 percent of this inventory overhang. Nevertheless, Delhi NCR registered a nine percent dip in the unsold inventory, QoQ.
Speaking on the report, Maneesh Upadhyaya, Chief Business Officer, 99acres.com, said, “Residential markets across the top eight cities together contributed to a 4-year high in sales volume in Jan-Mar 2022. Homebuyers were seen visiting sites and closing deals in new homes and resale markets despite initial lockdowns due to rising virus load in January 2022. Nevertheless, increasing raw material costs due to the Ukraine-Russia conflict kept the builder fraternity worried. Developer bodies in Maharashtra and Delhi threatened to halt construction activities in the absence of Government intervention.”
The growth trajectory remained northbound in Q1 of 2022 in Noida, Greater Noida and Ghaziabad. Even though the third wave of pandemic held back site visits and sales for a brief period, the market rejuvenated rapidly and sustained across February and March. Genuine buyers showed a keen interest in ready to move properties and independent plots across Noida, Greater Noida and Ghaziabad.
Farmhouses with a price tag of Rs 40-50 lakh saw an increased number of takers in the market. As anticipated in the previous quarters, Jewar Airport significantly influenced the demand for residential properties across Noida and Greater Noida. A number of localities in Noida posted increase in average weighted property prices in Jan-Mar 2022 against the previous quarter.
While neither Gurgaon nor Faridabad could post any increase in property rates in the studied quarter, sales volume spoke of an improving real estate landscape. Despite an increase in the circle rates in Gurgaon imposed by the civic body, homebuyers were seen returning to the market and finalising purchases pending for some quarters now.
Compact residential units captured highest demand in Gurgaon, and luxury units had their own set of takers, too. Housing societies build along Sohna Road, Golf Course Road and Dwarka Expressway captured maximum housing demand.
Units configured as 2BHK and 3BHKs continued being homebuyers’ favourite in Gurgaon and Delhi. Potential buyers showed a massive inclination towards ready to move properties due to the uncertainty that arose in the real estate market after COVID.
Of the total one lakh housing units awaiting buyers in Delhi NCR, Delhi’s contribution is merely 5-7 percent. This along with the ongoing reduction of 20 percent in circle rates until June 2022 pushed the city closer to a real estate recovery. While average weighted property prices in Delhi grew just by a percent, sectors in Dwarka continued attracting homebuyers and posted 2-5 percent hike in resale property rates.
Uttam Nagar, Janak Puri and Vikas Puri in West Delhi remained the in-demand areas for affordable properties. Greater Kailash and Vasant Kunj in South Delhi saw increased activity from buyers looking for luxury independent houses and builder floors.