Delhi NCR’s residential market that was gradually recovering from the NBFC crisis, State election-induced slowdown and the construction ban imposed by NGT due to rising pollution levels, hit the boulder with the COVID-19 outbreak in March 2020. The pandemic-led lockdown led to an almost 80 percent dip in both housing sales and new project launches, YoY. While the conversions stood at around 5,500 units, new launches numbered at a little above 1,400 units in H1 2020. Average property rates remained unchanged. However, a widened negotiation window translated to an average six percent slump, YoY, across budget categories in the resale market.
Nevertheless, with the Centre announcing “force majeure” by invoking Section 6 under RERA and the State governments extending the project registration validity by six months, developers breathed a sigh of relief. Gradual resumption of construction activities and multiple infrastructure projects announced in due course, including Rs 200 crore sports complex in Wazirabad, five new metro stations in Greater Noida West and Aqua Metro Line expansion, also improved the sentiment.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
Resultantly, by the end of Q3 2020, Delhi NCR comprised nearly 22 percent of the total housing sales recorded across metro cities. Residential pockets around Dwarka Expressway, Golf Course Road and New Gurgaon in Gurgaon remained popular among home buyers, followed by localities alongside Noida-Greater Noida Expressway, and those in Greater Noida West and Ghaziabad. Ready homes priced at Rs 45-65 lakh continued being in demand. Amid gradually improving offtake of residential units and reduced number of new launches, the unsold residential stock shrunk to 1.18 lakh units, however, the age of the inventory increased from 19.5 in H1 2019 to 21.9 in H1 2020.