While residential enquiries remained stable, conversions increased QoQ amid the pent up demand, resulting in around 10 percent surge in housing sales in the quarter.
The rental market continued to be the worst-hit across zones, as many companies continued to operate with a limited workforce.
Reduction in guidance values in Delhi and banks softening the home loan interest rates helped lift the home buying sentiment in Delhi NCR in Jan-Mar 2021. While residential enquiries remained stable, conversions increased QoQ amid the pent up demand, resulting in around 10 percent surge in housing sales in the quarter, according to 99acres.com.
The average property prices, however, failed to register any growth, QoQ. New launches improved in the review period; while the market still needs to cover a lot of ground to reach the pre-COVID-19 momentum. Around 16 new and redeveloped projects/ phases were launched across zones, with maximum share in the affordable segment. Barring a few builders such as Godrej Developers, Express Builders and Trident Builders, many deferred their launches. Besides, developers played defensive owing to the recent surge in COVID-19 cases in the capital and the ongoing liquidity crunch.
The rental market continued to be the worst-hit across zones, as many companies continued to operate with a limited workforce. Rentals also plummeted by about 15-20 percent YoY, and amid the rising COVID-19 cases, it’s unlikely to see normalcy any time soon. Unsold inventory in Delhi NCR stood at over 1.5 lakh units around March 2021-end. Around 65 percent of unsold residential stock is in Noida, followed by Gurgaon at 22 percent and Faridabad at three percent. The remaining is spread across Delhi and Ghaziabad.
Speaking on the report, Maneesh Upadhyaya, Chief Business Officer, 99acres.com, said, “The first quarter of 2021 witnessed a resurgence in sales volume across metro cities, particularly in Pune and Mumbai, amid a stamp duty cut till March. In line with the recovering market sentiment, site visits and sales, pricing power returned to the sellers. Based on properties listed on 99acres, none of the eight metro cities recorded a downward revision in average listing prices of residential apartments in Jan-Mar 2021 against the previous quarter. Buyer responses also reported a 7% surge in the same period on 99acres. Owner listings posted on 99acres also went up by 20% in Jan-Mar 2021 against Oct-Dec 2020.”
“The green shoots of recovery seen so far will have to stand the test of the time with a steep surge in COVID-19 cases and the resultant lockdowns in many parts of the country, impacting project construction timelines and buyer site visits. Nevertheless, measures such as reduction in stamp duty and a downward revision in circle rates could help counter-balance the impact of these adversities.”
Price Movement in Key Micro-Markets
Note: Rental Yield has been calculated for a 1,000 sq ft apartment. Average property prices and rental rates have been calculated as per listings posted on 99acres.com in the studied quarter.
The range of property prices may vary by 10 percent depending on the age and furnishing status of the residential apartments
The housing market in Noida, Greater Noida and Ghaziabad remained positive in Jan-Mar 2021. While enquiries were stable, residential sales improved QoQ amid the lower home loan interest rates, fresh housing supply and people’s continued affinity for homeownership.
Greater Noida West, and Sector 150 and 43 in Noida near the commercial hub of Sector 137 remained popular for 2 BHK and 3 BHK units, respectively. Growth propellers included availability of housing units priced Rs 35-50 lakh in Greater Noida West. For Sector 150 and 43 in Noida, direct connectivity to the planned Jewar Airport and projects by popular builders are seen as demand stimulators. Residential units priced in Rs 80-85 lakh budget were most popular in the sectors.
Authority-approved plots along Noida-Greater Noida Expressway and Yamuna Expressway attracted buyers; however, the latter captured higher traction amid the proposed Film City and Furniture Park. Residential plot rates along Yamuna Expressway have surged by around 10-15 percent in the last six months to Rs 18,000-25,000 per sq m.
Residential enquiries in Gurgaon went south by around 15 percent QoQ in Jan-Mar 2021 due to the limited number of new home buyers in the market. Transactions, nevertheless, improved by over 10 percent amid the spillover demand from the previous quarter and developers extending flexible payment schemes.
The speedy development of Dwarka Expressway, improved supply of ready homes and the presence of reputed builders, including Tata Housing, ATS Group and Mahindra Lifespaces, boosted enquiries in residential Sectors 102-115 along the stretch. Housing plots also garnered traction; but nearly 60 percent of demand in Gurgaon was recorded for resale homes priced between Rs 1 crore and Rs 1.5 crore.
New Gurgaon and Golf Course Road Extension remained popular owing to the news around the Khekri Daula Toll Plaza removal, ample residential choices and proximity to Southern Peripheral Road and NH-8. The average advertised rates of residential apartments in the areas were around Rs 7,000-11,000 per sq ft.
A reduction in the guidance value and cut in home loan interest rates helped lift the residential sales in Delhi in Q1 2021. Premium localities of South Delhi and North West Delhi witnessed maximum traction, with around a 7-10 percent hike in the advertised values of property amid demand outpacing supply for ready homes with new payouts and parking.
High-net-worth Individuals looking for luxury homes and leading edge amenities preferred the VIP addressed of Vasant Vihar, Greater Kailash, Vasant Kunj, Pitampura, and Punjabi Bagh. Units configured as 3 BHK and priced around Rs 3-3.5 crore posted maximum demand.