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Quarterly residential real estate analysis of top 8 cities in India

Delhi NCR Real Estate Report Apr-Jun 2020

3357 Jul 25, 2020 Download Report
  • 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.

 

INDIAN REALTY AT A GLANCE

Property Prices
Rental 'Asks'
Demand
Supply

* Property prices represent quarterly change * Rental 'asks' represent yearly change

* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com

 

99ACRES' OUTLOOK

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

LocalitiesApr-Jun 2020QoQ % ChangeYoY % ChangeRental Yield
Raj Nagar ExtensionRs 3,200 - 3,5002%1%3%
Vasant KunjRs 11,200 - 13,200-2%2%3%
Sector-137 NoidaRs 4,100 - 4,9001%-3%3%
Sector-57 GurgaonRs 6,400 - 7,1000%-3%3%
DLF CITY PHASE 2Rs 9,900 - 11,8000%-1%3%
Uttam NagarRs 4,000 - 4,600-4%1%4%
ChattarpurRs 3,200 - 4,000-2%-3%5%
Sector-76 NoidaRs 4,800 - 5,4002%0%3%
Sector-92 GurgaonRs 3,900 - 5,1001%8%2%
Sector-56 GurgaonRs 6,400 - 6,9002%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

 

 

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
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3 COMMENTS




  • S A Praaftl

    Reason for Zero Sale in New Friends Colony (Cat A) is that Circle Rates are double the Mkt Rate. Buyer do not come because authority assume balance transaction in cash.CM in Feb 20 announced that correction will be done within 3 months after elections but no action has been taken inspite reminder/grievance CM web.

    September 2, 2020 | 5:13 PM Reply

  • Mohan lal

    3 bhk Vasant Kunj for finance

    August 1, 2020 | 6:01 PM Reply

    1. Subhadra Bhadauria
      @Mohan lal

      Hi Mohan,

      Could you please elaborate on your query so that we can assist you better.

      August 4, 2020 | 10:18 AM Reply

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