The buying and renting markets in Delhi suffered at the hands of the COVID-19 pandemic. While the average weighted property prices maintained status quo, QoQ, a few areas saw prices softening to the tune of 5-10 percent. For instance, category A localities such as Vasant Vihar, New Friends Colony, Shanti Niketan and Anand Niketan saw a dip in prices owing to high disparity in circle rates and market rates and meek interest from homebuyers.
Similarly, Mayur Vihar recorded a few deals closures at a 10-15 percent discounted rate, depending upon the construction quality or the age and legal status of the property. A few distressed sales in East Delhi’s Laxmi Nagar were also reported to have closed at a value almost 20 percent lower than the quoted price.
Non-conducive market conditions marred sales in the Jul-Sep 2020 quarter across zones, but particularly in South Delhi. Despite Government’s suggestions to reduce stamp duty rates, the South Delhi Municipal Corporation increased transfer duty for women from two percent to three percent, and for other buyers to four percent from three percent, for properties with a registered value of Rs 25 lakh and above.
The rental market remained stagnant as demand from students and working professionals continued to be grim. A surge in vacancy rates hit average rentals with little scope of recovery until the next quarter. Some of the prime student housing hubs, which are impacted by the stunted demand, include Model Town, Tilak Nagar, Lajpat Nagar and Hauz Khas.