Pandemic Hits NCR Realty Sector, Housing Sales Fall by 51%: Survey
With NCR witnessing a 51% slump in housing sales and 47% decrease in new supplies in 2020 due to the “unstable” realty market, developers across the region’s cities say the sector has been going through challenging times and immediate government intervention is needed for its revival.
The builders demand more development-friendly policies such as reduction in stamp duty rates, reschedulement of project loans, reduction of interest on home loans and more tax benefits to homebuyers for the quick revival of the realty sector.
As per the latest report by real estate consultants Anarock, the NCR cities witnessed housing sales of 23,210 units in 2020 over 46,920 a year ago and the new supplies were restricted to 18,530 units this year against 35,280 in 2019.
Of the seven cities in NCR, Gurgaon topped the list, with maximum housing sales (7,240) in 2020. The city was followed by Greater Noida (6,950), Ghaziabad (3,780) and Noida (3,240). In Delhi, only 350 units were sold this year, with no new launches. And Gurgaon saw the maximum launches at 11,180 new units, followed by Faridabad (3,050), Greater Noida (1,820) and Bhiwadi (1010), says the report.
President of NAREDCO-UP and chairman of Supertech Group, RK Arora said the year started with the breakout of Covid-19, and the national lockdown halted construction activities, led to exodus of migrant workers, restricted movement of materials and compelled banks to withhold funds.
“We have, however, fought against all odds, brought back workers and slowly carried out construction activities. With demand improving, new infrastructure projects coming up, and developer-friendly policies being announced by the government, we are hopeful that the government realises the need for launching a special fund for the developers to complete all stalled projects,” he said.
Speaking of the real estate sector, Sudeep Singh, founder and CEO of MPowered, said, “Many NRIs have made investments in affordable housing projects this year due to property prices dropping significantly. Also, close to 8 million sq ft of commercial properties have been leased out at a pan-India level. This is in fact the best time for people with good cash flows to invest in property and maximise returns.”
Rajat Goel, joint managing director of MRG World, lauded the state government for taking a positive decision in the affordable housing segment before 2020 came to end. “Though affordable housing has the maximum demand, many buyers were not going for the units due to the lack of car parking space. Now, mandatory parking will encourage more buyers to invest in affordable housing.”
“The affordable housing segment saw the maximum sales and new launches in 2020. Some 70% of all the launches this year took place in this segment,” he added.