A study conducted by Knight Frank has revealed that real-estate sales in Mumbai have seen a surge of up to 2-3 times as compared to the Delhi NCR region. Also among the cities that are faring better than NCR are Pune and Bengaluru. It is said that these three regions are seeing an increase in sales as well as investor returns. The study was conducted based on an analysis of the top 8 cities in India.
While Mumbai and Pune may be faring somewhat better in the real-estate market when compared to Delhi NCR, these regions aren’t without their problems.
Read - Property Rates Are Decreasing In Mumbai
The data also shows that while all eight cities saw the real-estate sales falling dramatically during the lockdown period, Delhi’s market was the worst impacted with 82 per cent decline in new launches year-over-year.
Samir Jasuja, founder and managing director at PropEquity said - “Real estate sector which was slowly coming up by March was hit with a complete halt in construction and sales activities by March last week. We may witness resizing of units, discounts, amenities and special payment schemes to be offered by developers to create demand, especially during the upcoming festive season.”
Of the total real-estate sales in the top 8 cities, data suggests that Mumbai accounted for 30 per cent. The city also managed to maintain an average of 22-25 per cent sales over the last 10 years. Overall, Mumbai had a share of 31.32 per cent among the 8 cities in the first half of 2020, making it the city’s highest share in 10 years.
Farshid Cooper, Managing Director of Spenta Corporation said, “Mumbai and Delhi have always behaved very differently when compared purely on pricing. The pandemic has definitely created a stressful market environment for developers as well as the homebuyers who were actively looking at properties. Mumbai market is seeing demand towards the affordable segment in areas such as Virar, Navi Mumbai and Thane whereas the Delhi-NCR especially Noida is burdened with higher levels of unsold inventory and buyers in this area prefer ready-to-move inventory.”
Also read - Investors Distress-Selling Super-Luxury Real Estate In Mumbai Amidst The Lockdown
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