Delhi's Lutyens zone real estate market takes a pandemic pummeling, prices drop by 10 percent

NEW DELHI: Covid-19 spares none - not even the super-wealthy homeowners of New Delhi's Lutyens Zone, the leafy, meticulously-maintained 28 sq km area that houses around 600 plush privately-owned residences and 3,000 bungalows for India's political and administrative elite.
Lutyens private homeowners are facing a buyers' market just like their humbler counterparts elsewhere - asking prices are down 10-15% and, in some cases, up to 25% or even 50%. Brokers told ET that properties priced between Rs 75 crore to Rs 300 crore pre-pandemic are now available at Rs 65-270 crore.

Some of the pricier properties are being offered at the steepest discounts. For instance, the pandemic shaved Rs 100 crore off the Rs 375-crore asking price for a bungalow on Prithviraj Road, a prime Lutyens location.

Buyer's Market
The owner will now part with his possession for a mere Rs 275 crore. The asking price for a bungalow on Amrita Shergill Marg was Rs 500 crore. Brokers said it will fetch a maximum of Rs 350 crore in the current market. And a transaction for a bungalow at Golf Links is getting closed at Rs 120 crore, down Rs 30 crore from its earlier price of Rs 150 crore.

Some owners, property consultants and brokerage firms said, are even "desperate" enough to sell their homes at 50% of the pre-crisis price.

Bungalows at Prithviraj Road, Aurangzeb Road, Amrita Shergill Marg, Chanakyapuri, Jor Bagh and Golf Links were listed for Rs 10-12 lakh per sq yard pre-Covid, and are at Rs 8-10 lakh now.

Prices at Sundar Nagar, Hailey Road and Ferozeshah Road are now in the Rs 5-8 lakh per square yard range against Rs 6-10 lakh earlier. "Sellers who can hold off are not in the market now, as they know this is not the right time. However, there are sellers who have been in the market for quite some time and are willing to reduce prices... in some cases, the property is mortgaged with the bank and lenders are willing to reduce the price as the cost of holding it is much more," said Shveta Jain, managing director and head, residential services, Savills India.


Brokers also said some buyers who have been in the market for a few years know this is the best time to purchase and are bargaining hard with owners and brokers. Even first-time buyers are expecting deep discounts.

Brokers said around 30 bungalows and independent houses are in the market currently. "There is a significant correction in the Lutyens area, in the range of 10-20%. We feel it might touch 20-25% in the near future. It's surely a buyer's market now," said AB Nithin, founder, ABN La Casa Realtor.

Lutyens homes are owned by many of India's business elite. LN Mittal, Sunil Mittal, Naveen Jindal, Vijay Shekhar Sharma, as well as Adani Properties of the Adani Group, have acquired residences in this super-posh area.