Noida, Ghaziabad accounts for 80% of the residential sales of NCR: Report

NEW DELHI: Close to 6,000 housing units were launched in NCR in 2020 against 14,409 in 2019 as real estate developers focused on offloading the unsold investing, property consultant JLL said in a report.
According to JLL, residential sale improve by 43% in Q4 2020 as compared to the last quarter (Q32020) on the back of festive discounts, low interest rates and some premium launches by established developers.

However, sales are yet to reach the pre-Covid levels witnessed in 2019. Noida continued to dominate sales with 45% share of overall sales in Delhi NCR. This was followed by Ghaziabad, which contributed 31% of the total sales.

The residential market also rebounded with some prominent new launches. In Q4 2020, new launches more than tripled when compared to the last quarter.

Majority of the launches were recorded in Gurugram, which accounted for 61% of the new launches followed by Noida which contributed 24% of the launches.

“Homebuyers are increasingly becoming more confident about returning to the market. Site visits and enquiries from prospective buyers have been increasing consistently, driven primarily by end- users who are keen in ready to move in projects and newly launched projects by established developers,” said Manish Aggarwal, Managing Director, Delhi NCR, JLL India.

Interestingly, the quarter also witnessed the launch of plotted developments and individual floors by prominent developers. While prices remained, range bound across all the submarkets, developers are offering freebies and attractive payment terms to serious homebuyers.

Mumbai, the country’s largest contributor to sales for this quarter accounts for 23% of the overall sales, while the Delhi NCR market accounts for 20%. Pune saw the maximum increase in sales activity as compared to the third quarter at 147% with 3,323 units sold in all.

Seven key cities saw recovery gains of more than 50% in 2020 with Hyderabad, Mumbai and Delhi NCR gaining maximum foothold as compared to 2019.

“As the sector shows signs of recovery, prominent developers are expected to be at an advantage and capture a greater share of the market. Given that the affordable and mid-segments (sub INR 1 crore) continue to witness maximum sales traction, select developers are also reviewing their projects to make them more aligned to buyers, both in terms of product and price. As income levels come back to normal, more buyers will come to the market to make the most of this time,” said Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.

On an annual basis, overall launches across the top seven cities dipped by 31% to about 95,000 units in 2020 as compared to about 137,000 units in 2019. Development focus on mid and affordable segments continued in Q4 2020 with more than 80% of the new launches in the sub INR 10 million (INR 1 crore) category.