- Development work on 4.25 lakh housing units came to a sudden halt post the initiation of the COVID-19-induced lockdown.
- The city reported no new launches and property sales dipped to 2,000 units in Apr-Jun 2020, registering a fall of 75 percent, QoQ.
- Housing demand for under-construction units took the massive beating, as enquiries in this segment remained 75 percent lower than the previous quarter. Lucrative schemes from developers, such as 10:90 scheme, attracted fence sitters. However, deal conversions remained low.
- The paying guest accommodations suffered the most in the rental segment in Delhi. Vacancy level in such properties went up by 40 percent amid the COVID-19 crisis.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
Residential property sales and new project launches took a massive beating in Delhi NCR in Apr-Jun 2020. The city saw no new unit additions during the period and property enquiries dropped by a huge margin. Enquiries picked up pace in June but remained 50-60 percent lower than pre-COVID levels. Total transactions during the studied quarter numbered at around 2,000 units, about 75 percent lower than the previous quarter and around 85 percent lower than the last year.
Property registrations, too, went down by a notable 93 percent in Ghaziabad and 85-86 percent in other zones. Across the five NCR towns, a total of 42,228 properties were registered in May and June, against 140,800 last year. Maximum registrations were noted for independent houses and plots, indicating lower offtake of high-rise apartments. Property prices maintained status quo across zones, except Delhi where average ‘asks’ dipped by a marginal one percent, QoQ. There were case-by-case negotiations of up to 10-15 percent in the resale segment; however, average property prices in Delhi NCR remained stable. Lucrative 10:90 schemes from Grade A developers remained popular amongst fence-sitters.
The 71-day lockdown came heavily on the development work of 4.25 lakh housing units in the city. By mid-May onwards, work at a few construction sites began at one-third capacity, instilling some hope of pick-up in the ensuing quarters. With key infrastructure projects including the Delhi Metro flagging off construction work, the realty sector awaits the festive quarter for a revival in property sales. Any possible reduction in property prices will only be realised in the next 6-9 months.
Price movement in key micro-markets
|Localities||Apr-Jun 2020||QoQ % Change||YoY % Change||Rental Yield|
|Raj Nagar Extension||Rs 3,200 - 3,500||2%||1%||3%|
|Vasant Kunj||Rs 11,200 - 13,200||-2%||2%||3%|
|Sector-137 Noida||Rs 4,100 - 4,900||1%||-3%||3%|
|Sector-57 Gurgaon||Rs 6,400 - 7,100||0%||-3%||3%|
|DLF CITY PHASE 2||Rs 9,900 - 11,800||0%||-1%||3%|
|Uttam Nagar||Rs 4,000 - 4,600||-4%||1%||4%|
|Chattarpur||Rs 3,200 - 4,000||-2%||-3%||5%|
|Sector-76 Noida||Rs 4,800 - 5,400||2%||0%||3%|
|Sector-92 Gurgaon||Rs 3,900 - 5,100||1%||8%||2%|
|Sector-56 Gurgaon||Rs 6,400 - 6,900||2%||2%||3%|
* Average 'ask' rates have been calculated as per listings posted on 99acres.com
** Rental Yield has been calculated for a 1000 Sq. Ft. apartment