Housing sale in 8 major reaches pre-covid level :

  • Housing sales get increased by 12% during the first quarter that is in between January to March, 2021 when compared to that of the previous quarter October to December, 2020.
  • The RBI and all other banking systems, the state as well as the central government had announced to encourage and provide propulsion to the real estate sector of India. The outcomes have already begun to show its positivity that the property sales in 8 major cities increased by 12% during the first quarter.
  • These 8 major cities include Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, NCR, MMR and Pune, also recognized as the highest and the most active housing markets in India.
  • As these housing sales inclined to 12% upgrade, no sooner the real estate developers sold off an average of 66,175 homes during this first quarter in 2021.
  • This positive change in the first quarter is due to an increase in supply numbers, an indication that developers are more comfortable now with regard to liquidity support and buyer sentiment.
  • The Dhruv Agarwala Group head explained that the metrics on the demand side have also been largely stable, with the job market opening up again in various industries, giving people the confidence to take advantage of a property market that is at its most affordable for home buyers in years.
  • When compared to Q1CY20 (First Quarter of the Calendar Year, 2020), the home sales showed a decline of 5% from 69,555 units, something that can be termed marginal, before the pandemic spread started in India.
  • This above declination forced the government to announce a nation-wide lockdown late in March 2020 that brought economic activity in the country to a standstill.
  • A total of 53,037 units were launched across the eight markets during the three-month period, which saw the Union Cabinet approving a Bill to set up a Rs 20,000-crore Development Finance Institution to offer long-term capital support for infrastructure development in India. This marked an annual growth of 49% in housing supply.
  • Most of the markets remained largely flat with its annual growth during the end of CY20 and beginning of CY21.
  • Cities like Ahmedabad and Hyderabad showed some firming up of property values, with both cities registering 5% annual growth in average rates of property. However, there has been a quarterly increase in launches across markets, barring Ahmedabad.
  • After undergoing a 5% decline, unsold inventory in the eight markets stood at 705,344 as on March 31, 2021. The western markets of MMR and Pune contribute the most to this unsold stock, with a combined share of 54%.
  • The affordable housing segment, i.e., housing units priced up to Rs 45 lakhs, continues to dominate the market in 2021 Q1, contributing to about 54% in the overall new supply, followed by a 25% share.
  • Majorly, Mumbai and Pune are seen contributing to at least 31% and 20%, respectively. Their contribution is regarded as the highest in quarterly sales numbers.
  • While stating that housing was the biggest employing sector in the country after agriculture, the benign interest rate regime will still continue to get restored and benefit more home buyers, thereby, pushing demand.

Weighted average property prices in the top 8 residential markets:

CityAverage price as on September 2020 (in Rs per sq. ft)Percentage change over September 2019
Ahmedabad3,1516%
Bengaluru5,3102%
Chennai5,2402%
NCR4,232-1%
Hyderabad5,5936%
Kolkata4,1581%
MMR9,4651%
Pune4,9702%

City-wise break up of sales numbers in Q1 2021:

Sales20202021QoQ % GrowthYoY % Growth
CityQtr. 1Qtr. 4Qtr. 1
Ahmedabad4,5113,1254,68750%4%
Bangalore8,1977,6607,431-3%-9%
NCR5,4116,0656,1882%14%
Chennai3,6433,1804,46841%23%
Hyderabad5,5546,4877,72119%39%
Kolkata2,7472,5183,38234%23%
Mumbai23,96918,33118,5741%-23%
Pune15,52311,54813,72519%-12%
Total69,55558,91466,17612%-5%

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