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Quarterly residential real estate analysis of top 8 cities in India

Indian Real Estate Report Jul-Sep 2021

3269 Oct 18, 2021 Download Report
  • The Jul-Sep 2021 quarter saw the quickest real estate recovery in recent times. The period post the second wave of COVID-19 saw a sudden resurgence in demand, across metro cities.
  • Unlike the previous quarters, demand seemed to shift radically towards properties priced above Rs 90 lakh and those priced within Rs 45-90 lakh. Affordable homes priced within Rs 45 lakh saw limited takers.
  • Property prices, unlike expectation, saw a marginal hike of 1-3 percent across metro cities. An improvement in market sentiment encouraged developers to demand a premium.
  • The rental market saw some growth as offices started opening up by August 2021. The upcoming festive quarter is expected to usher more growth, given the country does not face another wave of COVID-19.
  • The COVID-19 induced work-from-home culture led the office space leasing to drop to a six-year low. Bangalore, Delhi NCR and Mumbai continued to top the commercial realty absorption and accounted for nearly 70 percent of the total leasing activity in H1 2021.

 

INDIAN REALTY AT A GLANCE

Property Prices
Rental Rates
Demand
Supply
* Property prices represent quarterly change * Rental rates represent yearly change

* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com

 

99ACRES' OUTLOOK

The Jul-Sep 2021 quarter saw the quickest real estate recovery in recent times. The period post the second wave of COVID-19 saw a sudden resurgence in demand, across metro cities. A dip in COVID cases, especially in the northern belt of the country, persistently low home loan interest rates, and a high latent demand for housing triggered the process of recovery in cities like Delhi NCR and Ahmedabad. Southern cities of Bangalore, Hyderabad and Chennai, too, saw a revival in housing demand, but at a gentler pace. Residential sales in Mumbai and Pune picked up with the onset of the festive period.

Unlike the previous quarters, demand seemed to shift radically towards properties priced above Rs 90 lakh and those priced within Rs 45-90 lakh. Affordable homes priced within Rs 45 lakh saw limited takers as most of these projects are located in peripheral locations having connectivity constraints. Moreover, buyers in this category focused primarily on survival during the pandemic, affecting their home buying appetite. Ready homes or those nearing completion by reputed developers continued to be the prime choice of potential buyers. There was, however, increased preference for plotted developments, a trend gaining momentum for the last three quarters.

Property prices, unlike expectation, saw a marginal hike of 1-3 percent across metro cities. An improvement in market sentiment encouraged developers to demand a premium. The rental market, too, saw some growth as offices started opening up by August 2021. The upcoming festive quarter is expected to usher more growth, given the country does not face another wave of COVID-19.

 

 

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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