Homebuying trend in Delhi continued to dwindle for the third quarter in a row in Oct-Dec 2020. The stalled redevelopment projects diminished the inventory supply in the city, leaving homebuyers with limited choices. This, coupled with many customers awaiting the launch of DDA housing scheme in January 2021, trimmed the residential sales in Delhi in the quarter ending December 2020.
Resale properties in the elite locales of South and South West Delhi, such as Vasant Kunj, Greater Kailash, New Friends Colony, and Defence Colony, witnessed some enquiries as patrons were willing to leverage the reduced lending rates. Nevertheless, conversions remained low amid the sellers unwilling to trade-off at lower ‘asks’. The hike in property tax rate by 2-5 percent in South Delhi also remained a deterrent for real estate sales in the region.
Sub-pockets in Dwarka, such as Sector 6, 10, 11 and 12, saw some traction on account of metro connectivity, proximity to commercial hubs and the availability of 2 BHK residential options in the range of Rs 80 lakh to Rs 1 crore.
The rental market in Delhi bottomed out in Oct-Dec 2020. Landlords struggling to pay their home EMIs slashed the rental rates to attract tenants. Despite the cuts, home leasing rates did not report any growth in the wake of the desponded demand from working professionals and the student community.