Delhi-NCR real estate market was one of the severely affected markets during the second wave of COVID-19 with housing sales dropping by almost 61% during Q2 2021. Launches too were lowest in the last four quarters with only 3,820 units getting launched during the second quarter, per a report by Anarock.
The report also said launches and sales may be adversely affected in case of a possible third wave.
New launches in Delhi-NCR decreased by 43% in the second quarter of 2021 compared to the previous quarter amid the second wave of COVID-19, Anarock said in the report.
However, new launches of 3,820 units during the quarter were significantly higher than Q2 2020 when the first wave hit the nation, it noted.
The affordable segment continued to dominate the market at a 43% share. However, the share has shrunk from 52% a quarter earlier. The share of the mid-end segment increased to 26% in Q2 2021 from 18% in Q1 2021.
The supply was equally distributed across the region with Greater Noida, Gurugram, and Noida accounting for 39%, 30%, and 30%, respectively.
There was a 61% drop in sales during Q2 2021 on account of the second wave. Nearly 3,470 units were sold during Q2 2021; registering a 61% quarterly decline.
However, sales were 65% higher in Q2 2021 compared to the same period last year as developers in NCR seemed to be better prepared to handle the second wave of the pandemic, the report said.
Gurugram continued to dominate the sales with a 32% share in Q2 2021.
Greater Noida accounted for 26% of the overall sales in NCR followed by Ghaziabad and Noida at 18% and 17%, respectively.
Available inventory remained largely stable during Q2 2021, depicting the balance between demand and supply.
Nearly 168,710 units were available for sale as of Q2 2021; accounting for 26% of the overall inventory available across the top seven cities. The balance between demand and supply led to a stable available inventory during the current quarter.
Gurugram continued to hold the highest available inventory of 37% in NCR as of Q2 2021, followed by Greater Noida at 23%.
The affordable segment accounted for 38% of the overall available inventory, closely followed by the mid-end segment at 35% during the current quarter.
The city has an inventory overhang of 80 months, the highest amongst the top 7 cities. Albeit, it has decreased from 85 months a quarter earlier.
Going forward, launches and sales are expected to increase in the last quarter of 2021 amid the festive season. Peripheral areas are likely to witness increased traction in the future, the report said.Prices are likely to remain stable for the next couple of quarters amid higher levels of available inventory across the region.