However, the new supply or launches of housing units decreased by 40% in the same period to 59,737 units from Q1 2020 at 1,00,343 units.
According to the report, Bengaluru, Chennai, Hyderabad, MMR, NCR and Pune are the cities where home sales witnessed a growth in Q1 2021 versus Q1 2020 at 13%, 29%, 16%, 26% and 6% respectively. Only Kolkata witnessed a downfall of 20% in home sales during the same period.
“Beginning of Q1 was relatively better for Indian realty as compared to last year and there was higher demand in ready to move in units and the projects nearing completion. However, the second wave of COVID will lead to muted demand going forward and we expect sales to pick up post second wave of COVID ending which should be around Q3 or Q4 onwards,” said Samir Jasuja, founder and managing director at PropEquity.
India’s IT capital Bengaluru saw a rise of 13% in home sales in Q1 2021 at 12,263. New launches decreased by 40% at 8,492 units, according to the report.
Chennai saw a 29% increase in home sales in Q1 2021 and new launches decreased by 8% to 4044 units.
“The current COVID wave has hit the sector when Indian real estate housing demand was on the growth trajectory in Q1 of 2021. We believe the current state of lockdown is short lived and the execution of the ongoing projects would not be impacted much in terms of delivery timelines. Our two under completion projects in Gurgaon and Noida were witnessing steady demand in Q1 and we believe once the current COVID spread in India is stabilized, the end user demand will again witness growth,” said Ankush Kaul, President (Sales & Marketing) – Ambience Group.
Mumbai saw an increase of 26% in home sales in the first quarter at 41,323 units, whereas new launches fell by 48% to 20,269 units.
While NCR witnessed an increase in both home sales and new launches by 6% and 136% respectively in Q1 2021.