Stamp duty cuts have proved to be an effective demand stimulant in the case of Mumbai, Pune and Kolkata where the state governments have applied a broad-based cut across ticket sizes in the primary market.
The total residential sales of the top eight markets under review during Q3 2021 reached 104% of 2019 quarterly average.
Housing sales volume across the eight major cities of the nation grew by a considerable 92% YoY to 64,010 units, while new residential unit launches increased by 90% YoY to 58,967 units in Q3 2021, according to Knight Frank India’s India Real Estate Update (July – September 2021). This is a significant recovery compared to 27,232 residential unit launches and 27,453 residential unit sales in the previous quarter.
As per the report, weighted average prices across markets remained stable in Q3 2021 and did not decline compared to the preceding quarter. The Chennai, Hyderabad and Kolkata markets saw prices increase marginally on a YoY basis during the quarter.
Stamp duty cuts have proved to be an effective demand stimulant in the case of Mumbai, Pune and Kolkata where the state governments have applied a broad-based cut across ticket sizes in the primary market. On the supply side, developers have responded well to the shift in homebuyer sentiment and pursued an aggressive pricing strategy over the year with spot discounts, financing deals, stamp duty waivers and other freebies to entice buyers.
The total residential sales of the top eight markets under review during Q3 2021 reached 104% of 2019 quarterly average. Similarly, residential launches in Q3 2021 improved to 106% of the 2019 quarterly average. Demand momentum was strong across markets in Q3 2021 with all markets reporting a YoY growth in sales. Mumbai and Bengaluru, which account for over half the inventory in the market, saw sales grow by 109% and 131% YoY, respectively, during this quarter.
HOUSING SALES IN UNITS
The share of sales in the ticket size Rs 5 – Rs 10 million grew to 35% in Q3 2021 compared to 32% a year ago. This can be attributed to the homebuyers’ need to upgrade to larger living spaces with better amenities. The share of home sales in the under Rs 5 mn ticket size category dropped to 43% in Q3 2021 from 45% a year ago as the income disruptions caused by the pandemic were more keenly felt by the lower income demographic.
Commenting on the same, Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “There has been an exciting improvement in sales and launches in Q3 2021. Sales momentum that picked up in the beginning of the year has sustained in Q3 2021. The market seems to have factored in the very low likelihood of a complete lockdown as was seen last year due to the ample availability of the COVID vaccine. Comparatively lower residential prices, attractive interest rates and higher household savings rate over the past year should support housing demand going forward.”
“With the upcoming festive season, the market is gearing up for new project launches and consumers are likely to reciprocate. While financial stress remains a significant factor for developers across markets, homebuyers’ preference for grade A developers and their access to cheaper credit has positioned them well in this recovering market,” he added.
Commenting on Knight Frank India’s Residential Real Estate Q3 2021 report, Ram Raheja, Director, S Raheja Realty, said, “Residential real estate has experienced a silver lining since the advent of the pandemic-induced lockdown. Mumbai, especially, has witnessed an unreal upsurge in housing sales and a consistent increase. With incentives like lower home loan rates, stamp duty rebates, and other government measures, it was a lucrative time for taking the plunge. Owning and upgrading their homes became a priority for most. It is, therefore, no surprise that the island city has witnessed a phenomenal growth of 109% YOY with sale of 15,942 residential units in Q3 2021. Even new launches have grown 45% since last year, showcasing a bullish sentiment among developers.”
The fact that this growth is seen even without stimuli like stamp-duty cut indicates that the upswing in demand is here to stay. In terms of categories, the premium category, i.e. 10 million and above, has seen consistent growth in Q32021, while prices too have remained stable. “This is indicative that the luxury residential segment will continue to propel. The robust sales in real estate are likely to continue with further optimism driven by the upcoming festive season, new launches, and the expected economic revival along with improved status of completely vaccinated population,” Raheja added.
https://www.financialexpress.com/money/home-sales-across-top-8-cities-surge-by-92-new-launches-by-90-yoy-in-q3-2021-report/2343413/
