In the coming quarters, the focus on these price segments is expected to continue with developers trying to reap the benefits of strong pent-up demand in these segments. Most of the new launches in the markets of Bangalore, Hyderabad, and Pune were in this price bracket.
Around 77% and 76% projects were from this segment during the quarter in Bangalore and Hyderabad, respectively, while 100% projects launched in Pune were in this category.
Residential sales during the quarter recovered to over 90% of the volumes witnessed in the year ago pre-Covid period across the top seven cities, JLL India said.
The cities including Chennai, Hyderabad, Kolkata, and Pune surpassed the sales volumes of the corresponding period a year ago. Overall sales increased by 17% on a sequential basis.
Mumbai has consistently been the largest contributor to sales in the last four quarters. During the first quarter, Mumbai accounted for 23% of the sales, followed by Delhi NCR with a share of 21%.
“The sustained growth in sales presents clear signs of demand and buyer confidence coming back to the market. This has been on the back of historically low home loan interest rates, stagnant residential prices, lucrative payment plans and freebies from developers and government incentives such as the reduction of stamp duty in states like Maharashtra and Karnataka (for affordable housing). The ease of lockdown restrictions and the commencement of the vaccination drive have further aided in bringing buyers back to the market,” said Samantak Das, Chief Economist and Head Research & REIS, JLL.
The first quarter of 2021 witnessed 27% growth in new launches at 33,953 residential units. Hyderabad continued to dominate new launches and accounted for more than a fourth of the overall launches. Bengaluru followed with over 16% of the new launches. The markets of Delhi-NCR and Chennai witnessed a substantial increase in launch activity during the quarter.
New launches, however, are still at 84% when compared to the pre-Covid levels during the first quarter of 2020. Developers across the markets under review remain focused on the completion of under construction projects and clearing their existing inventory.