Lockdowns enforced during Covid 2.0 impacted launches, site visits and housing sales in Delhi/NCR; No change in average property prices: Report

Amid the catastrophic second wave of Covid-19, the housing market in Delhi NCR suffered a significant setback in April-June 2021, as per 99acres Insite Report. While the residential enquiries started drying up from April first week, 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. Subsequently, the housing sales in Delhi NCR truncated by around 70 percent QoQ in the April-June 2021 quarter, as per the report.

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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.

The range of property prices may vary by 10 percent depending on the age and furnishing status of the residential apartments Noida, Greater Noida and Ghaziabad.

Post the revival of sorts in Q1 2021, the housing market in Noida, Greater Noida and Ghaziabad hit the skids in Apr-Jun 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 percent QoQ.

Central Noida and Noida Extension remained popular for 2 BHK and 3 BHK apartments in 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, as per the report.

Housing transactions in Gurgaon and Faridabad nosedived in Apr-Jun 2021. While up to 90 percent hike in circle rates and the Covid-19 second strain led to around 25 percent dip in Gurgaon, Faridabad’s residential market recorded a 10 percent 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.

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 1.5-3 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 Apr-Jun 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 percent 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 30-35 lakh.