In a big boost to the residential real estate market, housing sales in Delhi-NCR witnessed a 50% surge in the April-June quarter according to a report by property brokerage firm PropTiger.com. Despite the second wave of coronavirus, the region registered sales of 2,828 units in this quarter against 1,886 units in the year-ago period. Confirming the sector’s promising growth, the report further added that sales of residential units in the region jumped by 24 percent year-on-year to 9,016 units during the first six months of 2021.
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“Promising sales are a testimonial of consumer’s confidence in real estate as an asset class for secured future and higher returns. The pandemic has made people realize the importance of owning a home. In addition, millennial or first-time buyers now prefer buying homes to rentals for overall well-being and quality living. Rising aspirations of buyers have also catapulted the demand for spacious customizations that include dedicated workspace, study rooms, modern kitchenette, fitness & entertainment zones, balconies and others for an opulent lifestyle. Gurugram is the most prominent real estate market in the country owing to infra upgrades, economic advantages, and last-mile connectivity. Low-interest rates, stamp duty cuts, easy financing options, and others have also had a multiplier effect leading to sales growth,” said Pankaj Bansal, Director, M3M.
Gurugram emerged as the best performer in the NCR region by registering 36% of sales followed by Noida and Greater Noida at 34%. Faridabad and Ghaziabad had a share of 8% and 12% respectively in the April-June quarter. Housing sales in Gurugram increased to 1,020 units in this quarter from 885 units in the same period last year.
“This time around, the real estate sector was well-versed with the know-how of the pandemic, and hence was better positioned than last year. Changing preferences of end-users and reasonable pricing, coupled with favourable policies are the key reasons supporting the demand surge. Recent studies by Proptiger and Knight Frank also confirmed the return of optimism in the market, backed by resumption of economic activity and vaccination. The real estate sector has surprised everyone by registering indomitable resilience against the COVID-shock and more promising results will be witnessed in the second half of 2021,”
Likewise, residential sales in Greater Noida stood at 521 units, up from 484 units in the second quarter of 2020. As many as 1,153 units were sold in the previous quarter. Noida saw sales of 437 units during April-June this year. Demand stood at 361 units in the year-ago period and 1,132 units in the previous quarter. In Ghaziabad, housing sales rose to 331 units in the second quarter of 2021 from 152 units in the corresponding quarter of 2020. Faridabad saw a sharp jump in sales to 519 units during April-June this year. Demand stood at 4 units in the second quarter last year and 156 units in January-March this year.
“Gurugram accounted for the highest share of 36 percent in overall sales in NCR. Strategic location, a spate of infrastructural developments and the subsequently enhanced connectivity, policy push by the Haryana government and initiatives by developers have made Gurugram a preferred realty hotspot. The prospects of economic stability and regaining pace of business activities augur well for real estate growth. Furthermore, proposed projects such as Delhi Mumbai Industrial Corridor (DMIC), Regional Rapid Transit System (RRTS) and industrial sub-cities along the Kundli Manesar Palwal (KMP) Expressway will further boost real estate and spur economic development in the region,” said Rahul Singla, Director, Mapsko Group.
The report also said that Delhi-NCR, Ahmedabad, and Hyderabad were the only three cities out of a total of eight major markets that witnessed an increase in sales numbers during April-June. The remaining five cities – Mumbai Metropolitan Region (MMR), Pune, Bengaluru, Kolkata, and Chennai saw a decline in demand. Delhi-NCR was second only to MMR in terms of housing sales, accounting for 18 percent in the overall national sales. Mumbai contributed nearly 21 percent to the overall sales.