NCR region has shown drastic improvement in the performance of both office and residential asset classes during 2021. As per Knight Frank Report, residential sales in NCR rose by 65% YOY in CY 2021 with over 35073 units sold during that year, while new residential project launches rose by 110% YOY with additional 20,585 units rates, property prices.
As per ANAROCK report, NCR witnessed rising housing sales by 73%, from 23,210 units in 2020 to 40,050 units in 2021. After looking at the performance of this report, NCR falls second to MMR in terms of sales during 2021 as MMR saw housing sales close to 76,400 units in 2021.
Rajat Goel, Joint Managing Director, MRG World, said, “Following a brief slowdown during the second wave’s peak, activity increased as fears of a pandemic faded. The RBI’s accommodative stance helped the residential sector. Given the heightened relevance of buying a home during the pandemic, backed by the work-from-home trend and low home loan interest rates, buyers’ sentiment was positive, resulting in developers’ confidence to launch new projects,”.
The Knight Frank Report with the title Real Estate: H2 2021 stated that two-third of sales volume was reported in H2 2021, having 23,599 housing units.
Looking at the year’s performance, Yash Miglani, MD, Migsun Group, said, “After a near-halt in 2020, the year 2021 started better, but the second wave hit the market in the first few months; however, after June 2021, the sector saw a rebound backed by all-time low home loan interest rates, good projects, and moderate pricing. The sales figures improved substantially as the year progressed. The number of new launches also rose as individuals became more aware of the value of real estate assets. In comparison to past years, larger homes, residences that promote a healthy lifestyle, and plots received more attention.”
The report also noted that projects with ticket sizes above 1 crore were 37% of total sales compared to 31% a year ago.
Nayan Raheja of Raheja Developers says, “People realise the value of living a healthy lifestyle, reclaiming their lives, and reconnecting with their inner selves. People have been moving closer to farmhouses for the past year-and-a-half, and things have changed tremendously,”.
Referring to the office segment in Noida, Nikhil Anand, Director, Maasters Infra, said, “Noida is quickly catching up with other parts of the region in the commercial segment race in Delhi NCR. As connectivity increases, there is a greater need for real estate infrastructure, notably commercial space. Noida’s commercial viability will be boosted by the airport, Film City, and DMRC corridor. The Noida-Greater Expressway belt and the office zones (Sector 62 and 63) are particularly active. The physical and social infrastructure of this zone is undeniably better than those of other areas.”
Deepak Kapoor, Director, Gulshan Group, says, “The COVID-struck year 2020 post lockdown witnessed a phenomenon of pent up demand in residential sector. Lowest home loan interest rates acted as the catalyst. Customer preferences shifted to bigger homes with more rooms. Many developers had to bear the brunt of financial stress who could not deliver. So end-users’ demand ultimately moved to developers who continued to deliver”.
He further added, “As far as commercial realty is concerned, companies in the NCR are building market preferences based on good business rationale derived from comparisons with neighboring locations. Even small office spaces in Delhi are expensive, but Noida offers the most cost-effective options. Infrastructure expansions, particularly in the commercial sector, are expected to enhance the real estate market in Noida even further,”.