While the residential enquiries started drying up from the first week of April, the consequent lockdown from the third week of April to May 31 remained a massive spoiler, bringing the market to a standstill.
The second wave of COVID-19 marred home buying sentiment in April-June 2021. Homebuyers took a back seat and avoided site visits amid restrictions on movement. Deals on the verge of finalisation were put on a hold. Overall, property sales dwindled by an average of 55 per cent, QoQ, in the top eight metro cities.
The housing market in Delhi NCR also suffered a significant setback in April-June 2021. While the residential enquiries started drying up from the first week of April, the consequent lockdown from the third week of April to May 31 remained a massive spoiler, bringing the market to a standstill. Despite the businesses reopening from June onwards, the partial lockdown persistent in some zones slowed down the recovery process, according to 99acres Insite Report for April-June’21.
Subsequently, the housing sales in Delhi NCR truncated by around 70 per cent QoQ in the April-June 2021 quarter. New supply plummeted significantly in the review period as many developers rescheduled their launches to Q3 2021. The non-operational markets kept the unsold inventory in Delhi NCR unchanged at 1.5 lakh units in the quarter ending June 2021. The period required to dispose of this stock stands at 60 months.
Speaking on the report, Maneesh Upadhyaya, Chief Business Officer, 99acres.com, said, “The Indian economy went through a tumultuous time in April-June 2021, battling one of the biggest healthcare crisis ushered by the unprecedented second wave of COVID-19. Like most sectors, transactions in real estate market, too, came to a grinding halt in April with lockdown restrictions across the country. Subsequent to a reviving January-March quarter, which witnessed site visits, home enquiries and sales volume going up in both new home and resale segments, the months of April and May recorded a dip in numbers unheard of.”
“Not surprisingly, as people battled for medical care and survival, sale-purchase of homes was put on the back burner. Responses on 99acres went down by over 25 per cent in April-June 2021 against the previous quarter. Owner listings, too, saw a 5 per cent degrowth as seller community echoed the uncertain and grim market sentiment. Nevertheless, home enquiries picked up as active COVID caseload and lockdown restrictions dropped in June. 99acres too witnessed an upward trend in both owner listings and responses in the month followed by a two-month descent. In the subsequent quarters, no upward revision in lending rates and State specific subsidies on stamp duty and registration charges will help spur demand in the residential segment,” he added.
Post the revival of sorts in Q1 2021, the housing market in Noida, Greater Noida and Ghaziabad hit the skids in April-June 2021 with the resurgence of COVID-19. While the resale market continued to witness demand due to GST benefits and lower risks, the primary market remained worst-hit amid restricted supply of ready homes. Resultantly, housing sales in the region dipped by around 60 per cent QoQ.
Central Noida and Noida Extension remained popular for 2 BHK and 3 BHK apartments in the Rs 40-60 lakh and Rs 65-80 lakh budget categories, respectively. Sectors 150 and 43 along the Noida-Greater Expressway continued attracting homebuyers owing to their direct access to the upcoming Jewar Airport and residential supply by renowned developers. Apartments priced Rs 80-90 lakh were the most popular in these areas.
Independent homes received enquiries in Sectors 39, 41, 47 and 50; however, financial adversity and sellers’ unwillingness to offer discounts compelled many prospective buyers to defer their purchases.
Housing transactions in Gurgaon and Faridabad nosedived in April-June 2021. While up to 90 per cent hike in circle rates and the COVID-19 second strain led to around 25 per cent dip in Gurgaon, Faridabad’s residential market recorded a 10 per cent drop in residential transactions, QoQ. Increased demand for builder floors in Neharpar and residential plots in Sectors 83 and 89, induced by offers such as flexible payment plans and lower interest rates and discounts, helped in a few deal closures in Faridabad.
Gurgaon & Faridabad: Budget-Wise Demand & Supply
The residential market in Gurgaon struggled for buyers; however, a few areas, such as DLF Phase 1, 2 3 and 4, Sushant Lok 1 and Golf Course Extension Road, continued to deflect the COVID-19 curveball and recorded maximum enquiries for 3 BHK units pegged at Rs 1.5-Rs 3 crore. Residential plots measuring 1,500-3,000 sq ft in Sohna and along Dwarka Expressway also remained popular among investors.
Despite the all-time low home loan interest rates, the housing market in Delhi remained sluggish in April-June 2021. The challenges posed by the second wave of COVID-19 bogged down the homebuying capacity of individuals. Consequently, the month-on-month sales in the metropolis declined by 15-20 per cent in Q2 2021.
The premium pockets of South Delhi, including Neeti Bagh, Gulmohar Park, Greater Kailash, Defence Colony, Vasant Kunj and Vasant Vihar, continued to receive enquiries. Of all, 3 BHK builder floors with terrace rights grew as a popular choice, followed by ground floors.
Janakpuri, Vikaspuri and Rohini in West Delhi also received traction from homebuyers in the resale segment. The average buy rates in these areas were around Rs 4,500-8,500 per sq ft. Uttam Nagar remained popular among buyers looking for cost-effective homes priced Rs 30-35 lakh.