- The home buying sentiment remained upbeat in Q1 2021, despite a fresh wave of COVID-19 cases across metro cities. While site visits reduced in March 2021, housing sales grew gradually. Mumbai and Pune led all metro cities in terms of property sales as homebuyers rushed to cash in on the reduced stamp duty rates, a benefit valid until March 31.
- In line with the previous quarters, the rental market remained grim as professionals and students continued operating from home. A surge in COVID cases further delayed the reopening of organisations and institutions, marring hopes of a revival in the rental market. Rentals are reportedly down by 10-15 percent since last one year.
- Property prices remained unchanged in Delhi NCR, Mumbai, Bangalore and Pune, but inched up slightly in cities like Hyderabad, Chennai, Kolkata and Ahmedabad. Unsold inventory of about 4.6 lakh units maintained a downward pressure on property prices, despite a surge in construction costs, thus forcing developers to limit profit margins.
- While new housing projects surged across cities, QoQ, numbers remained significantly lower than a year ago. About 600 new projects were launched this quarter. Supply in the secondary market also improved as property owners attempted sales while maintaining their ‘asks’ and avoiding massive negotiations.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
A consistent demand revival in the Indian realty landscape on the back of conducive Government policies and multiple incentives rolled out by the developers led property sales register an almost 20 percent hike, YoY. About 25,500 housing units were reportedly sold in Jan-Mar 2021 across the top eight cities, with transactions in Chennai and Kolkata surpassing the pre-COVID levels. Hyderabad and Bangalore reported a relatively slow recovery due to the resurgence of COVID cases.
Delhi NCR, Mumbai and Pune showed consistent growth despite the pandemic taking another high in the month of March 2021.
New launches inched up slightly across Kolkata, Ahmedabad and Pune, QoQ. Developers largely focused on the most popular affordable and mid-income segments. Resultantly, more than 60 percent of the new launches happened in the sub Rs 80 lakh category. Of this, majority conversions were noted in the price bucket of Rs 50-75 lakh. The premium category, too, benefitted from the improved housing sentiment and reported a marginal price hike of two percent amid limited inventory.
Overall, the average property prices surged slightly by a percent across cities like Chennai, Hyderabad, Kolkata and Ahmedabad, and maintained status quo in Delhi NCR, Mumbai, Bangalore and Pune.
Unsold inventory of around 4.6 lakh units is bound to downplay growth in the coming quarters, especially if the county
undergoes another round of lockdown following a surge in COVID-19 cases.