Housing unit sales rose by 20% in Jan-Mar 2021

Due to a stamp duty reduction until March, the first quarter of 2021 saw a spike in sales volume across metro cities, especially in Pune and Mumbai. the housing sales are sure to be affected but to what extent can be shown only after analysing the data of past few months.

In the top eight metro cities, over 600 new residential projects were launched during the year.

Property prices started to climb in Q1 2021, owing to stamp duty rate cuts, reduced deals, and an all-time low in home loan interest rates. According to a 99acres.com survey, persistent demand recovery in the Indian real estate environment on the basis of favourable government policies and numerous developer incentives drove housing unit sales up 20% YoY in the January to March quarter.

Due to a revival in COVID cases, Hyderabad and Bangalore have announced a sluggish recovery. However, pre-COVID demand levels in Chennai and Kolkata were exceeded. Despite the second wave of COVID-19 arriving in March 2021, Delhi NCR, Mumbai, and Pune continued to rise.

Fresh LaunchesHousing unit sales rose by 20% in Jan-Mar 2021

In the top eight metro cities, over 600 new residential projects were launched during the year. Despite an increase in COVID events, Mumbai continued to lead all cities with a 38 per cent share of new and re-launched projects for the third quarter in a row. With a 21% share, Hyderabad has surpassed Pune to take second place. Surprisingly, Delhi NCR added the least to the overall new unit adds, accounting for just 3% of the total.

“The first quarter of 2021 witnessed a resurgence in sales volume across metro cities, especially in Pune and Mumbai, amid a stamp duty cut until March,” said Maneesh Upadhyaya, Chief Business Officer, 99acres.com.Pricing leverage returned to the sellers as consumer mood, web visits, and revenue improved. 

Based on properties listed on 99acres, none of the eight metro cities saw a decrease in average selling prices of residential apartments from the previous quarter in January-March 2021. In the same time frame, buyer responses on 99acres increased by 7%. The number of owner listings on 99acres increased by 20% in January-March 2021 compared to October-December 2020.”

Based on properties listed on 99acres, none of the eight metro cities saw a decrease in average selling prices of residential apartments from the previous quarter in January-March 2021. In the same time frame, buyer responses on 99acres increased by 7%. The number of owner listings on 99acres increased by 20% in January-March 2021 compared to October-December 2020.”

Housing options opted – Jan-Mar’21

Delhi and Mumbai are at the top of the luxury housing rankings in the first quarter of 2021. These two metros, led by Bangalore and Hyderabad, accounted for the majority of demand for properties valued over Rs 1 crore. Affordable housing (under Rs 40 lakh) remained the most common option, with Kolkata leading the way, followed by Chennai, Ahmedabad, and Pune. Bangalore has the lowest demand for low-cost housing but the highest demand for mid-cost housing (between Rs 40 lakh and Rs 1 crore).

Homebuyers tended to choose ready-to-move-in houses or developments approaching construction and hence paid a premium for them. The premium market has picked up steam, owing to NRI demand in cities such as Bangalore and Pune.

Prices – Jan-Mar’21

In cities such as Chennai, Hyderabad, Kolkata, and Ahmedabad, average property prices increased by 1%, while in Delhi NCR, Mumbai, Bangalore, and Pune, they remained unchanged. The rental market remained bleak, as any expectation of offices and educational establishments reopening was dashed by a new surge in COVID events. Rental prices have taken a hit of 10-15% YoY as vacancy rates have risen steadily across towns. The rapid spread of the COVID vaccine, on the other hand, could tip the rental market in the next two quarters.

Sales and Unsold inventory

Mumbai and Pune accounted for the majority of the 25,500 housing sales during the time, as homebuyers raced to take advantage of reduced stamp duty rates until March 31, 2021. Chennai and Kolkata were close behind, with strong revenue conversions in the quarter. End-user demand soared across cities, especially in areas where homes were available for less than Rs 75 lakh.

End-users favoured freshly shipped ready units, but unsold inventory decreased at a much higher pace than in the past. Furthermore, due to a recent spike in COVID events, a few Category A and B developers have postponed their new launch plans indefinitely until March 2021.

The affordable section, which is fueled by government programmes, discounts, and rebates, saw the most unit absorption. The middle- and upper-income housing classes are yet to start travelling. Unsold inventory was about 4.6 lakh units at the end of March 2021, and the quarters to sell rose to 12 from 10 in March 2020.

Commercial Property – Jan-Mar’21

With 20% of overall leasing in the top eight cities, the Information Technology and Business Process Management (IT-BPM) segment led the office leasing industry. With 15.4 per cent of the office leasing market, the Banking, Financial Services, and Insurance (BFSI) industry came in second. Chennai led all cities with a 35 per cent market share, followed by Pune and Delhi NCR with 20 per cent and 18 per cent market shares, respectively.

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