- The buyer sentiment improved during the festive season as the markets swarmed with discount offers amid all-time low home loan interest rates. Property sales went up by over 50 percent across top 8 metro cities, QoQ. Mumbai contributed almost 23 percent to the overall sales, followed by Delhi NCR and Pune.
- The rental market remained grim as students and professionals continued to work from their hometowns. Barring the transit and commercial hotspots, most areas in the cities reported high vacancy rates and thus, a dip of 5-10 percent in rental ‘asks’. The commercial rentals maintained status quo, especially in Delhi NCR and Mumbai.
- Property prices witnessed a downward pressure amid an unsold inventory of 4.62 lakh units in metro cities; however, an upsurge in enquiries kept sellers from slashing ‘ask’ rates. The scope of negotiation remained high in the resale segment. Developers, however, did not slash new project prices due to increased cost of construction.
- The supply in both new project and resale markets proliferated with the gradual improvement in home buying sentiment. Developers were seen realigning their projects in terms of pricing and product. With the addition of over 400 new projects this quarter, unsold inventory surged marginally and stood at 4.62 lakh units.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
Confronting the adversities posed by the world health crisis during Apr-Jun 2020, the onset of the final quarter of 2020 seemed promising. A perceptional and behavioral shift, coupled with the renewed housing demand, spiraled into rigorous absorption of housing units in Oct-Dec 2020. The festive vigour helped developers see improvement in new home sales, which numbered around 21,800 units, up by almost 50 percent, QoQ. Demand from the Non-Resident Indians (NRIs) went up significantly by over 200 percent since March 2020. Across the consumer segments, ready units remained the prime choice as growing liquidity constraints kept buyers wary and cautious of underconstruction projects.
Despite an unrelenting focus on completing ongoing housing projects, a few Grade A developers launched new projects, sealing the sentiment of market revival. Across the top eight metro cities, approximately 400 housing projects (including relaunched projects and project phases) with over 26,700 units were launched. Mumbai took the lead and captured over 27 percent share of total new launches. Cumulatively, the unsold inventory levels grew marginally across the metro cities and stood at 4.62 lakh at the end of Oct-Dec 2020.
The average weighted prices across cities remained unchanged as the downward pressure of a perception based slowdown forced developers and sellers to maintain status quo. However, with home loan interest rates continuing at a 15-year low, the Centre urging State governments to address the exorbitant stamp duty charges and pumping in funds to expedite the development of key infrastructure projects, the real estate sector is poised to register growth in the year 2021.