High-value real estate transactions in Delhi on hold due to lockdown

Top real estate brokerage firms have urged the Delhi government to reopen the registry offices as over two dozen high-value transactions were on hold and both buyers and sellers were facing problems in closing transactions.
Delhi has been under lockdown since mid-April. Though several government offices were allowed to function during this period, registry offices remained shut as officers were reassigned on Covid duty.

“It is not just the registration of property, but registration of will and general power of attorney is also on hold, affecting real estate transactions. The more time you give both parties, higher the chance of renegotiation,” said Amit Goyal, the India chief executive at Sotheby's International Realty.

Brokers active in the region said multiple deals of farmhouses, bungalows and of some Lutyens’ Delhi properties were in the final stage of negotiations when the lockdown was imposed.

Gurgaon, Noida, Mumbai and Goa have reopened the registries.

Since the lockdown restrictions were eased in May last year and until the clamping of the lockdown again in this April, there had been a spate of high-value transactions in Lutyens’ Delhi and South Delhi, with entrepreneurs and wealthy individuals looking for bigger homes in the capital’s poshest colonies.

Surrounded by Shanti Niketan, Vasant Vihar and Chanakyapuri, West End is among the most sought-after locations by wealthy people who prefer independent bungalows.

“A similar trend is expected as we are already getting a lot of queries for farmhouses and independent bungalows. But the buyer is cautious as registrations aren’t happening and in many cases the owner doesn’t have the power of attorney,” said Pradeep Prajapati, head of luxury residential service at IQI India.

Brokers expect the government to reopen registry offices from next week as the national capital has started a gradual reopening from May 31.

“Non-essential services have been closed as per government orders,” said a senior Delhi government official when asked about the reason for the closure of registry offices.

Recently, Ashok Jaipuria, founder of Cosmo Films, has bought a 1,200-square-yard bungalow in south Delhi’s West End Colony for about Rs 80 crore.

Former additional solicitor general Vikas Singh bought a 860-square-yard bungalow at Sunder Nagar in Lutyens’ Delhi for around Rs 70 crore, while Ritesh Dua of Relaxo footwear paid a similar amount for a 1,250-square-yard bungalow at Vasant Vihar.

Most recently, sanitary ware company Jaquar purchased three farmhouses in Delhi’s Westend Greens for around Rs 235 crore.