The residential market in Delhi NCR reported around 40 per cent growth in the sales volume in October-December 2020 against July-September 2020.
The residential market in Delhi NCR, that suffered a massive setback in the previous quarters due to the COVID-19 pandemic, reported around 40 per cent growth in the sales volume in October-December 2020 against July-September 2020. With about 4,500 units sold, the city emerged as the second-largest contributor to housing sales across metros, next to Mumbai. Nevertheless, the numbers were still around 25 percent lower than the Jan-Mar 2020, reveals the Delhi-NCR Insite Report for Oct-Dec’20 by 99acres.com.
According to the report, new launches declined by 25 per cent YoY with merely nine projects announced in the review period. Barring a few additions by premium developers such as Godrej, DLF and BPTP, fresh housing supply in Delhi NCR remained low-key. Builders refrained from new project announcements, and focused on offloading their existing inventory and generating cash inflow. Many developers also deferred their expansion plans to calibrate their project designs as per the customers’ altered preferences.
The demand-supply disequilibrium did not alter the average ‘asks.’ Builders afraid to lose their potential patrons abstained from increasing prices. Resultantly, property values across zones maintained a status quo in Q4 2020 against the previous quarter.
Speaking on the report, Maneesh Upadhyaya, Chief Business Officer, 99acres.com, said, “Amid the turbulence created by the COVID-19 pandemic, RBI and GOI announced several measures to aid economic revival. Bringing down home loan interest rates to almost a 15-year-low, stamp duty reductions in Maharashtra and Karnataka, liquidity infusion measures, one-time restructuring of loans and supportive stance for NBFCs, MSMEs, and real estate sector comforted businesses and individuals. With gradual unlocking of cities and news around possible vaccinations, normalcy started returning to the market. This all cumulatively helped push housing demand up and the last quarter of the year recorded a marked improvement in sales against the previous ones.”
Notably, Delhi NCR, Mumbai, Pune, Bangalore and Chennai reported a 10-45% rise in property sales in Oct-Dec 2020 against Jul-Sep 2020. Improved seller confidence in the market was also evident from a 15 percent rise in owner sale listings posted on 99acres in the same period.
“With the infection rate reducing and vaccination drives starting across the country, the worst seems to be behind us and the subsequent revival in businesses, and individual home ownership appetite are likely to aid realty growth in 2021,” he added.
While residential enquiries in Noida, Greater Noida and Ghaziabad grew by nearly 20 percent QoQ in Oct-Dec 2020, sales remained meek. The fast-depleting ready-to-move inventory and select developers increasing the ask rates due to the cost overruns in the ongoing projects impaired the homebuying sentiment. Consequently, the transactions continued to be lower than the pre-COVID-19 times.
Expeditious development on the Jewar Airport and the expanding Blue Line and Aqua Line metro networks boded well for areas alongside, particularly Greater Noida West. Low-cost inventory pegged at around Rs 3,000-4,400 per sq ft, and improving social infrastructure helped the market garner enquiries in the studied period.
The homebuying sentiment in Gurgaon remained upbeat in Q4 2020. The festive period buoyancy and a host of schemes provided by developers accelerated the residential enquiries and thereby the conversions. A few popular schemes floating in the market were 30:70 payment facilities, PLC waivers and freebies such as free parking and indoor amenities.
While apartments continued to remain popular, builder floor also seized substantial demand amid the improved supply in the category by premium developers. Residential plots measuring 100-200 sq yards in the price range of Rs 50 lakh- Rs 1.2 crore also witnessed some traction, particularly in Faridabad.
Homebuying trend in Delhi continued to dwindle for the third quarter in the row in Oct-Dec 2020. The stalled redevelopment projects diminished the inventory supply in the city, leaving homebuyers with limited choices. This, coupled with many customers awaiting the launch of DDA housing scheme in January 2021, trimmed the residential sales in Delhi in the quarter ending December 2020.
Resale properties in the elite locales of South and South West Delhi such as Vasant Kunj, Greater Kailash, New Friends Colony, and Defence Colony witnessed some enquiries as patrons were willing to leverage the reduced lending rates. Nevertheless, conversions remained low amid the sellers unwilling to trade-off at lower asks and South Delhi Municipal Corporation (SDMC) hiking the property tax by 2-5 percent.