As the pandemic recedes, recovery in the residential real estate sector, which was derailed in the second quarter due to the 2nd wave of Covid-19, is back on track in all the Top 7 cities of the country. Prabhakar Sinha writes
Housing Sales in July-September (Q3) 2021 have surpassed the pre-Covid 19 level in the all the Top 7 cities in the country, barring Bengaluru.
Sales have surged by 113% year-on-year across the Top 7 cities in the country, from 29,520 units in July-September (Q3) 2020, to nearly 62,800 units, in the same period of 2021.
Sales in the Top 7 cities in Q3 2021 rose by 39%, over the sale of 45,230 units, achieved in the same period in 2019 – a pre-Covid-19 era. As the total sale at 24,560 in the previous quarter, that is, Q2 2021, was badly hit due to the 2nd wave of the Covid-19 infection, sale in the Q3 2021 saw an increase of 156%.
The Top 7 cities under review are the Delhi NCR, Mumbai MMR, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata.
Mumbai MMR, with around 21,000 units, accounted for 33% of the total sales, followed by the NCR with 10,220 units at 16% of the total sales, consultancy firm ANAROCK said in a report.
Sales in Q3 of 2021 in the NCR are up by 77%, over the sale of 5,790 in 2019. In the MMR Mumbai, sales in Q3 2021 is rose by 49% over that in Q3 2019, a pre-Covid-19 era.
Except Bengaluru, where sales in Q3 of 2021 declined by 9%, to 8,550 units, from 9,370 in Q3 of 2019, sales in all other markets have surged past the same comparative period in the pre-Covid-19 era. Hyderabad market saw the maximum growth of 228%, from 2,050 units in Q3 of 2019 to 6,735 units in Q3 of 2021.
Sales have picked up in the NCR markets too. Not only are sales happening in the ready-to-move-in projects, projects under construction are also seeing good traction.
Godrej Properties Ltd (GPL), one of India’s leading real estate developers, said it has sold 340 housing units in its project, Evergreen, in Noida, for Rs 1,140 crore in the last six months.
According to a survey by realty consultant JLL, 80% of prospective homebuyers in a sample of around 2,500 are expected to make a purchase in the next 3 months. With this, the JLL report said, the residential market is expected to get back on the recovery path and 2021 is likely to end on an optimistic note.
In most markets, especially Mumbai market, registration of housing units in September 2021 exceeded the previous high in the last 10 years (achieved in September 2018) at 5,913 units. Analysts say the figure will cross the 7,000 mark this year in September.
A report by Motilal Oswal Financial Services Limited said more than 6,021 units were registered in the first 21 days of September, surpassing the September 2018 number. In Septertibtir2020,-Mumbai had a total registration of 5,597 units, despite lowering of stamp duty to 2%.
New launches in the Top 7 cities also rose by 98% – from 32,530 units in Q3 of 2020 to 64,560 units in Q3 of 2021 While Mumbai MMR continued to see the highest number of new launches, at 16,510 units in the quarter, Hyderabad was a close second with a new supply infusion of 14,690 units.
The report said that midsegment homes priced in the range of Rs 40 lakh to Rs 80 lakh, and premium homes priced between Rs 80 lakh and Rs 1.5 crore, continue to dominate new supply with 41% and 25% shares, respective Affordable housing segml units priced at less than R40 lakh saw supply share reduce to 24% in the quarter.