The residential market of Delhi NCR showed signs of recovery in July-September 2021. With markets reopening for site visits and construction sites operating in full swing, enquiries and conversions improved QoQ, according to the latest 99acres Insite report.

Spillover demand and pending property registrations from the previous quarter contributed to record high growth in sales in July-September 2021.

Delhi NCR was among the very few markets where new housing supply reeled under pressure in Q3 2021. Amid the hike in raw material cost, builders primarily reevaluated their business strategies and preferred liquidating their existing inventory before launching new projects. Barring a few fresh launches and phase-wise additions by Godrej Properties and Signature Global, residential supply remained muted. The demand-supply disequilibrium helped the unsold inventory in Delhi NCR to decrease to 1.3 lakh units in July-September 2021 as against 1.5 lakh units in April-June 2021. The period required to dispose of this stock stands at around 60 months.

Commenting on the report, Maneesh Upadhyaya, Chief Business Officer, 99acres.com, said, “The quarter Jul-Sep 2021 witnessed a sharp resurgence in housing sales in most Indian metro cities. Spillover demand from the COVID-hit previous quarter, stimulators such as limited period stamp duty cut in some states, and fresh housing supply supported the growth. The first two quarters of the year recorded the sale of almost 1 lakh residential units across the country, with Q2 contributing most of it.”

“Mumbai and Pune led the pack with maximum property registrations. Project launches from these two cities made almost 60% of the total new supply in top metros. All studied markets saw average property rates, in both new homes and resale segments, witnessing an upward movement between 1% and 3%, QoQ. In coherence, buyer responses on 99acres reported over 40% surge and owner listings on the platform grew by 102% in July-September 2021 against the previous quarter,” he added.

The ongoing COVID-19 vaccination drive and lower home loan interest rates improved the home buying sentiment in Noida, Greater Noida and Ghaziabad in Q3 2021. Residential sales in the ready homes category recorded a 10-15 growth QoQ. Property prices also witnessed an uptick, particularly in the under-construction new home segment due to increased raw material costs.

BUDGET-WISE DEMAND AND SUPPLY IN DELHI NCR

Noida Extension and Central Noida captured maximum enquiries for 2 BHK and 3 BHK units in the Rs 45-65 lakh budget. Authority plots and luxury apartments pegged at Rs 2.5-3 crore along the Yamuna Expressway, and Noida-Greater Noida Thruway also garnered traction. Locational advantage and quality projects by Grade A developers helped the area witness more transactions.

Against the previous quarter, residential enquiries and transactions in Gurgaon and Faridabad improved significantly in Jul-Sep 2021. Group investment remained a fad in Gurgaon, where a group of buyers purchase land and outsource an S+3 or S+4 development rather than opting for independent builder floors, as it ensures significant cost saving. Apartments and builder floor units in DLF Phase 1-4, Sushant Lok 1, Huda Sectors, Golf Course Road Extension and New Gurgaon listed at Rs 2.5-Rs 4 crore also remained popular among end-users.

In Faridabad, residential plots and flats continued to be famous in Neharpar, while Greenfields received maximum enquiries for 3 BHK and 4 BHK builder floor units priced at Rs 80 lakh – Rs 1 crore.

The home buying trend in Delhi picked up the pace in Jul-Sep 2021. With news around the third wave in the offing, fence-sitters closed deals in the resale segment in the studied quarter. Besides, price negotiations by a few sellers also helped materialise conversions. Subsequently, residential sales increased by 8-10 percent QoQ in Delhi.

Luxury and ultra-luxury properties continued to gain traction in Chattarpaur, Defence Colony, Gulmohar Park, Lajpat Nagar and Greater Kailash. G+3 and G+4 structures received attention, with top floor and ground floor units priced at Rs 3-4 crore being the most preferred.