Real estate news | Home sales increased by 50% in Delhi-NCR during Corona second wave, revealed in PropTiger report, Home sales increased by 50% in Delhi-NCR during Corona second wave
Demand for houses increased in Delhi-NCR  |  Photo Credits: BCCL
- Gurugram leads in sales of houses in NCR.
- NCR accounts for 18 per cent of the total sales in the top eight cities.
- Of the total 8 major markets in the country, only 3 cities grew.
According to a report by leading online real estate brokerage firm PropTiger.com, residential property sales in the country’s largest real estate market Delhi-NCR grew 50 percent annually during April-June this year due to high demand despite the second wave of the corona epidemic. . In its quarterly report Real Insight (Residential) April-June 2021, PropTiger reported that sales in the primary markets of Delhi-NCR increased to 2,828 units during April-June 2021 from 1,886 units in the year-ago period.
Delhi-NCR, Ahmedabad and Hyderabad were the only three cities that saw an increase in sales out of the total eight major markets in the country tracked by PropTiger. While the remaining five cities – Mumbai Metropolitan Region (MMR), Pune, Bengaluru, Kolkata and Chennai saw a decline in demand. Sales across eight cities declined 16 per cent to 15,968 units in the second quarter of this calendar year as against 19,038 units in the same period last year. There was a decline of 76 per cent in sales on a sequential basis.
Mani Rangarajan, Group COO, Housing.com, Makaan.com and PropTiger.com said that in the last 5-6 years residential properties have become very affordable due to low interest rates on home loans and stable property prices. Moreover, the COVID-19 pandemic has made us realize how important it is to own a home that is of a certain size conducive to remote working. These factors have kept the housing market resilient in the midst of an unprecedented global health crisis. Home sales in Delhi NCR declined by 54 per cent to 2,828 units during April-June on a sequential basis or the previous quarter as against 6,188 units in the previous quarter. The demand was almost completely wiped out during April and May due to the devastating impact of the second wave on human life.
Delhi-NCR was one of the worst affected cities during the second wave of coronavirus infections. An entire agglomeration of the five main cities of Delhi-NCR – Gurugram, Faridabad, Noida, Greater Noida and Ghaziabad – was second only to the Mumbai Metropolitan Region (MMR) in terms of home sales, which is the total number of homes sold across the country. had a share of 18 percent. Mumbai contributed about 21 per cent of the total home sales in the country. With sales of 1,020 units, Gurugram accounted for 36 per cent of the total sales among major NCR cities. Faridabad and Ghaziabad held 18 per cent and 12 per cent, respectively.
Noida and Greater Noida also saw an increase in demand and they accounted for 34 per cent of the total sales in Delhi NCR. Home sales in Gurugram increased to 1020 units during the April-June 2021 quarter as against 885 units in the same period last year. The demand was less than 2946 units in the previous quarter. Sales in Greater Noida stood at 521 units, up from 484 units in Q2 of 2020. In the previous quarter, 1153 units were sold.
During April-June this year, 437 units were sold in Noida. Demand was 361 units in the year-ago period and 1132 units in the previous quarter. Home sales in Ghaziabad increased from 152 units in Q2 2020 to 331 units in Q2 2021. However, demand fell from 801 units on a previous quarter basis.
Faridabad saw a sharp jump in home sales with 519 units during April-June this year. Demand stood at 4 units in the second half of 2020 and 156 units in the January-March quarter this year. Faridabad remained the only micro-market in NCR which saw growth on year-on-year and quarter-on-quarter basis. Although the base here was low.
In the midst of the second wave of Kovid-19, builders were hesitant to start new projects on a large scale or a new phase of existing projects. As a result, the supply of new homes declined to just 818 units during April-June 2021, a sharp decline of 59 per cent from 2016 units in the year-ago period. On a quarterly basis, there was a decline of 83 per cent against 4,778 units in the previous quarter. Of the total 818 units launched in Delhi-NCR, 94 per cent were located in Noida and Greater Noida. New supply stalled in Gurugram. There were no new launches in Faridabad and Ghaziabad in the second quarter of 2021.
Rangarajan further said that the new supply in Delhi-NCR during the April-June quarter was very less. In a way, this is a boon for the Delhi-NCR property market, which has a massive stock of unsold homes. The unsold housing stock at the end of June quarter saw a 7 per cent year-on-year decline in unsold housing stock at 1,03,269 units due to slow but steady home sales coupled with short supply of new homes.
Inventory overhang has increased from 53 months in the same period last year to 64 months in the second quarter of 2021. Delhi NCR has the highest inventory stock among the top eight cities. Prices for newly launched projects remained largely as expected, with a marginal increase since the end of the March quarter. Average home prices rose to Rs 4,377 per sq ft from Rs 4,293 per sq ft a year ago and Rs 4,327 per sq ft during the January-March period of the 2021 calendar year.
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