Home sales volume in the country’s eight major cities grew 92 percent year-on-year to 64,010 units, while new residential unit launches increased 90 percent year-on-year to 58,967 units in the third quarter 2021, according to Knight Frank India’s India Real Estate Update (July – September 2021). This is a significant recovery from 27,232 residential unit launches and 27,453 residential unit sales in the previous quarter.
According to the report, weighted average prices across all markets remained stable in the third quarter of 2021 and did not decline compared to the previous quarter. The Chennai, Hyderabad and Kolkata markets saw prices increase slightly year-on-year during the quarter.
Stamp duty reductions have proven to be an effective demand stimulus in the cases of Mumbai, Pune and Kolkata, where state governments have applied blanket reduction in ticket sizes in the primary market. On the supply side, developers responded well to the change in sentiment among homebuyers and pursued an aggressive pricing strategy during the year with cash discounts, financing deals, duty exemptions. stamp and other gifts to attract buyers.
Total residential sales in the top eight markets examined in the third quarter of 2021 reached 104% of the 2019 quarterly average. Likewise, residential launches in the third quarter of 2021 improved to 106% of the 2019 quarterly average. Demand momentum was strong across all markets in the third quarter of 2021, with all markets recording year-over-year sales growth. Mumbai and Bangalore, which account for more than half of the market’s inventory, saw sales increase 109% and 131% year-on-year, respectively, in this quarter.
SALES OF HOUSING IN UNITS
The share of sales in the size of Rs 5 – Rs 10 million tickets rose to 35% in the third quarter of 2021 from 32% a year ago. This can be attributed to the buyers’ need to move to larger living spaces with better amenities. The share of home sales in the under Rs 5million category fell to 43% in the third quarter of 2021, from 45% a year ago, as the revenue disruptions caused by the pandemic were more severely affected. felt by the low-income population.
Commenting on the same, Shishir Baijal, President and CEO of Knight Frank India, said: “There has been an exciting improvement in sales and launches in the third quarter of 2021. The sales momentum which accelerated at the start of the year held steady in the third quarter of 2021. The market seems to have taken into account the very low probability of a full lockdown as seen last year due to the wide availability of the COVID vaccine. Comparatively lower residential prices, attractive interest rates and a higher household savings rate over the past year are expected to support housing demand going forward. “
“With the holiday season coming, the market is gearing up for the launch of new projects and consumers are likely to return the favor. While financial stress remains an important factor for promoters in all markets, buyers’ preference for category A promoters and their access to cheaper credits have positioned them well in this recovering market ”, he added. he adds.