The National Capital Region (NCR) residential market cracked by 73 per cent year-on-year in home sales to 5,446 units in the first half of calendar 2020, according to a new report by Knight Frank India.
The home launches in NCR saw an 82 per cent decline to 1,422 units, a record low in any half-yearly period in a decade. The city also witnessed a 6 per cent decline in weighted average prices to Rs 44,617 per square metre (or Rs 4,145 per square feet).
On the other hand, new office completions in NCR saw 86 per cent year-on-year decline to 0.08 million square metres in H1 2020 and office leasing transaction volumes saw a decline of 45 per cent to 0.19 million square metres. The period witnessed the average deal size shrink to 2,927 square metres (or 31,506 square feet).
Central business district (CBD) Delhi, one of the premium office micro-markets in India, continues to command the highest rentals to the tune of Rs 2,303 to 3,767 per square metres per month (or Rs 214 to 350 per square feet per month) in the NCR office market.
However, weighted average rentals declined by 9 per cent to Rs 844 per square metres per month (or Rs 78.4 per square feet per month) for the region.
According to the report, Noida's overall transaction activity of 0.10 million square metres (or 1.08 million square feet) outpaced Gurugram's reported figures of 0.09 million square metres (0.9 million square feet) for the first time in the past one decade.
Mudassir Zaidi, Executive Director for North at Knight Frank India, said the overall NCR office market last year saw exponential growth in terms of supply as well as transactions. Covid-19 outbreak and the nationwide lockdown has completely altered the scenario.
"The on-going pandemic is testing the flexibility of corporate occupiers to operate in an environment where a part of the workforce returns to office premises in the 'new normal' while monitoring the workforce operating remotely via work from home (WFH) model," he said.
On the other hand, NCR's residential property market has remained cautiously optimistic. The glimmer of hope provided by the slowdown in launches and a marginally better pace of sales has impacted the unsold inventory positively.
"It is not wrong to say with prices under pressure, interested buyers can leverage the opportunity as the Gurugram, Greater Noida and Noida belt are orgcally connected to the national capital via an established road network," said Zaidi.
( With inputs from ANI )