Noida: Flat sales begin to pick up as Covid-19 restrictions relaxedUpdated: Oct 10, 2020, 22:57 IST
After witnessing a severe slump from April to June due to the Covid-19 pandemic and the nationwide lockdown, the real estate sector is slowly reviving as the sale of flats has increased in last three months in the twin cities of Noida and Greater Noida after restrictions were eased, according to property consultants and government officials.
In Noida alone, flat sales increased from 265 units in the preceding quarter (April, May and June) to 670 units in third quarter (July, August and September) of the calendar year 2020, said a survey of Anarock , a property consultant.
Greater Noida saw housing sales rise to 1,610 units in Q3 (July, August and September) from 630 units in the preceding quarter, the survey said.
According to Anarock’s research, national capital region cities such as Noida, Greater Noida, Ghaziabad, Gurugram and Faridabad saw a sales of nearly 5,200 units in Q3, an increase of 148% compared to the preceding quarter (Q2 - May, June and July).
Compared to the pre-Covid-19 quarter of Q1 2020 (January, February, March), housing sales in NCR have rebounded by nearly 65% in the third quarter.
Individually, Gurgaon saw a nearly three-fold jump in housing sales -- from 570 units in Q2 2020 to nearly 1,680 units in Q3 2020.
“The massive jump in housing sales signals positive trends for the upcoming festive quarter (October-December) where we expect home sales to rise further. Despite the ongoing pandemic, we are seeing genuine homebuyers make the most of the low home loan rates and the innovative schemes offered by developers, including financial benefits, flexible payment plans, etc,” said Anuj Puri, Chairman, Anarock Property Consultants.
Real estate experts and officials of the registry department feel that many homebuyers, who could not buy a property or failed to execute their property registry due to Covid since March this year to transfer property title to their name, are now rushing to do the same.
According to Anarock survey’s in April 2020, NCR comes third nationwide with nearly 15,600 unsold ready homes worth R10,720 crore. This accounts for just 9% of the total unsold inventory of 1.73 lakh units in the region.
Experts feel that coming festive season will help the sector to see a revival to some extent.
“We are already seeing signs of a revival with sales in the mid-market segment picking up across all metro cities. Pent-up demand of the last six months, reduction in interest rates of home loans, availability of completed units and the ‘work-from-home’ imperative are all expected to contribute to a strong recovery in the second half of 2020,” said Gaurav Kumar, Managing Director, Capital markets and residential business, CBRE India.
Meanwhile, the Gautam Budh Nagar stamp and registration department, which carries out property registration, transferring property from a seller’s name to buyer’s name, is also flooded with property buyers wanting to make sale or purchase now.
In April, when the Covid-19 restrictions came into effect, no property registry took place, and the state government did not get any revenue out of property sales.
The UP government then restarted registry with some restrictions from May 4 and in the same month, it earned a revenue of Rs10 crore. In June, it earned Rs 60 crore, Rs100 crore in July and in August, the revenue rose to Rs110 crore.
“From September 1 to October 9, the revenue rose to Rs426 crore. We hope it will further increase manifold in the upcoming festive season from October 17 to 25, when property buyers’ sentiment is at all-time high in the year,” said AK Tripathi assistant inspector general (AIG), stamp and registration department, Gautam Budh Nagar.
Small property consultants have also started feeling positivity as the market has started to open up.
“As people do not have that much fear as it was initially when the Covid-19 pandemic just broke out, those who want to purchase property, be it flat or plot, are coming to us to inquire or visiting the sites. We are witnessing a positivity among customers unlike earlier, when the market was completely shut due to Covid-19. We are now getting 5-6 customers daily who want to explore options for buying,” said RD Singh, head of Geeta properties, a small property consultant.
“We are looking for a flat in Noida during this time because we realised that due to Covid-19, we may get a better deal as compared to pre-Covid situation. Many developers, we heard, are offering flats at lower rates,” said Amit Kumar Chauhan, a prospective buyer.