Delhi NCR has been witnessing a continuous increase in the sales volume since Q2 2020. The region saw a sale of 2,250 units in Q2 2020, 3112 units in Q3 2020, 4440 in Q4 2020, and 5448 in Q1 2021. The percentage growth in sales volume Q1 2021 over Q 4 2020 is 23%, which is the third-highest growth volume among the major cities in India. The figures were released by JLL in Residential Market Update - Q1 2021. The number one spot was taken by Kolkata with 201% growth followed by Chennai with 28% growth in Q1 2021 over Q4 2020.
"The sustained growth in sales presents clear signs of demand and buyer confidence coming back to the market. This has been on the back of historically low home loan interest rates, stagnant residential prices, lucrative payment plans and freebies from developers and government incentives such as the reduction of the stamp duty in states like Maharashtra and Karnataka (for affordable housing). The ease of lockdown restrictions and the commencement of the vaccination drive have further aided in bringing buyers back to the market," said Dr. Samantak Das, Chief Economist and Head Research & REIS, JLL.
According to the finance ministry, the 0.4 per cent growth in the December quarter suggests that the economy has returned to pre-pandemic levels and represents a further strengthening of the V-shaped recovery. The real estate sector's optimism is palpable, as new projects are being launched at a rising pace, signaling optimism and demand that will contribute to more economic recovery. "As the real estate sector recovers from losses, people are willing to invest in projects developed by reputable developers. In the end, it's all about how people view a developer, and we'd like to thank our customers for putting their faith in us," says Dhiraj Jain, Director, Mahagun Group.
It was a heartfelt moment for 40-year-old Amit Trivedi as he booked a property in Delhi NCR as home loan interest rates are hovering around sub-7%. He was glad as he was waiting for the home loan interest rates to come down since he moved to Delhi in 2009. People like Trivedi are happy to take a step towards realizing the dream of owning a home in Delhi NCR. Vijay Verma, CEO, Sunworld Group says, "It's a good sign for the sector, which will have to react more rapidly to meet the increased demand for real estate assets as a result of the global pandemic. Soon, the market will be flooded with investment opportunities that offer investors high returns and better living choices for end-users."
Overall also, the Indian economy is recovery better-than-expected. At constant rates, the Indian economy was worth Rs 145.66 lakh crore in FY20. According to India Ratings' forecasts, it will contract 7.8% year y-o-y to Rs 134.33 lakh crore in FY21 and grow 9.6% y-o-y to Rs 147.17 lakh crore in FY22. "To get your returns right, what you need is a structured market analysis. This is a great time for end-users or long-term investors to get into the market. Today, the buyer is also in the driver's seat while purchasing a new property that has recently been completed or is nearing completion," says Harvinder Singh Sikka, MD, Sikkaa Group.
Against estimates, the first three quarters of 2020 saw sales of around Rs 90,000 crore in seven major cities, compared to around Rs 1,50,000 crore in the same timeframe of 2019. Despite a roughly 40%-45% decrease in revenue from the previous year, the year must be seen in the background of the global economic downturn triggered by the pandemic. Major cities' housing sales value increased substantially over pre-COVID-19 levels, owing mainly to the mid-segment; NCR witnessed more than 150 per cent increase in sales in the third quarter of 2020.
Dhiraj Bora, Head Marketing & Communication, Paramount Group says, "Home loan rates were also lowered as a result of the government's repo rate cuts and liquidity injections. To avoid a sudden decrease in sentiment, the developer community also implemented appealing payment plans. Markets began to rebound after the lockdown was lifted, amid a downturn in economic activity that was weighing on the overall economy. Finally, the previous year's growth figures were restored in the last quarter, and the industry returned to a state of near-normalcy."