Housing sale in 8 major markets reaches pre-Covid level

Home sales in India’ eight prime residential markets has increased by 12% in the January-March quarter compared to Oct-Dec quarter of 2020, according to a report by online property brokerage firm PropTiger.com.

According to Real Insight – Q1CY21, builders sold a total of 66,176 homes in the primary market in the January-March quarter of 2021, a time marked with several state governments, including Maharashtra and Delhi, announcing stamp duty and circle rate reductions to boost buyer sentiment and by effect housing sales.

When compared with the same period last year, home sales has declined by 5%.

“As the economy gradually marches towards recovery, as reflected in global rating agencies and think-tanks revising India’s growth forecasts for 2021 and 2022, the residential real estate market in the country is also seeing a positive momentum on the back of various measures taken by the centre and state governments. This positive change is visible in the first quarter through an increase in supply numbers, an indication that developers are more comfortable now with regard to liquidity support and buyer sentiment,” said Dhruv Agarwala, Group CEO, PropTiger.com.

On the supply side, a total of 53,037 units were launched across India during the three-month period, an annual growth of 49% in housing supply. A quarter-on-quarter (QoQ) comparison shows new launches declined 2% when compared to the last quarter of CY20.

As expected, no extraordinary upwards movement was seen in average prices of property in the primary or new homes market. While annual growth remained largely flat or in low single digits in most markets, Ahmedabad and Hyderabad stood out, with 5% annual growth in average rates of property.

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“The Maharashtra government’s decision to temporarily lower stamp duty on property registrations helped mitigate the steep decline in sales for the Mumbai and Pune markets that contribute the most to the national stock of unsold homes. The state government should have continued with the benefit of reduced rates to keep the sales momentum going. We also expect states like UP and Haryana to announce stamp duty and circle rate reductions in order to provide support to crucial housing markets of Noida and Gurugram in the national capital region,” said Mani Rangarajan, Group COO, PropTiger.com.



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