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Quarterly residential real estate analysis of top 8 cities in India

Indian Real Estate Report Jan-Mar 2021: Market Updates

66 Apr 16, 2021 Download Report
RBI keeps repo rate unchanged at four percentThe Monetary Policy Committee kept repo rate unchanged at four percent and reverse repo rate at 3.5 percent post a slash of 115 basis points in March 2020. No increase in these rates comforted the realty market, which is currently benefitting from the reduced home loan interest rates extended by nationalised banks.
Supreme Court reinstates RBI nod for foreign homebuyersIn accordance with Section 31 of the 1973 Act, the apex bank held that foreign nationals would need to continue seeking approval from the RBI for the transfer or disposal of immovable property in India. In the absence of such consent, a penalty would be levied on the concerned party under Section 50 and other provisions of the 1973 Act.
Banks reduce home loan interest ratesNationalised banks, such as State Bank of India (SBI), ICICI and Kotak Mahindra, reduced home loan interest rates to as low as 6.65-6.70 percent for loans up to Rs 75 lakh and 6.75 percent for loans ranging between Rs 75 lakh and Rs 5 crore. A few banks also waived off loan processing fee completely to attract homebuyers ahead of the festive season of Holi.
Govt. extends tax holiday for affordable homebuyersIn Union Budget 2021-22, the government extended the period for taking loans for purchasing affordable homes by one year, i.e. from March 31, 2021, to March 31, 2022. With this, homebuyers can avail additional tax benefits of Rs 1.5 lakh under Section 80 (EEA) of the Income Tax Act until the next year.


  • The Information Technology and Business Process Management (IT-BPM) sector led the office leasing market with 20 percent of total leasing across the top eight cities. The Banking, Financial Services and Insurance (BFSI) sector followed with a 15.4 percent share in office leasing.
  • The absorption of leased manufacturing spaces increased to 6.6 million sq ft across the top eight metro cities. While Chennai led all cities with a 35 percent market share, Pune and Delhi NCR followed with 20 percent and 18 percent respective shares.
  • Managed spaces remained predominantly popular and their occupancy space stood at 65 percent in the last one year. By the end of the year, the flexible workspace providers are likely to lease about 3 million sq ft of space across the top metro cities.



Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
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