Data from real estate consultancy firm Anarock shows home sales in the seven major cities increased 71% year-on-year in 2021 to reach 2,36,530 units from 1,38,350 units in 2020, although demand increased. been ten% below pre-Covid levels. Mumbai metropolitan area recorded the highest sales with 76,400 units, followed by NCR with around 40,050 units sold.
Of all the launches, the middle segment (Rs 40 lakh to Rs 80 lakh) had the maximum share with 39%, followed by the affordable segment (price below Rs 40 lakh) with a share of 26%. The premium segment (price between Rs 80 lakh and Rs 1.5 Cr) held a 25% share.
“Despite the pandemic, 2021 has been a fantastic year for India’s housing industry. More or less an equal number of houses have been launched and sold. The fact that launches have returned to pre-COVID levels is very important and that home sales were only 10% lower than 2019. Of the four quarters, the fourth quarter of 2021 was by far the best, with home sales in the top 7 cities hitting a new high of around 90,860 units in the fourth quarter of 2021. This is the quarterly sales performance highest since 2015 ”, said Anuj Puri, President – ANAROCK Group.
A huge increase in homeownership aspirations has been supported by developer discounts and offers, government incentives such as Maharashtra’s stamp duty cuts, and lenders keeping ten-year interest rates low, Puri added.
Likewise, data analyzed in the eight main cities by Knight Frank India shows that new home launches also saw a significant increase of 58% year on year with the addition of 232,382 units in 2021.
According to Knightfrank, Mumbai (34,382), the National Capital Region (23,599) and Bengaluru (23,218) were the main performers of residential sales in the second half of 2021. Hyderabad and Bengaluru saw the highest home sales (in terms of percentage growth) during the second half of the year. 2021 at 135% and 104% year-on-year respectively. In calendar year 2021, Mumbai (62,989), Bengaluru (38,030) and Pune (37,218) led the way in terms of sales.
From a half-year sales perspective, the second half of 2021 recorded the highest sales volume since the first half of 2016. Low interest rates, better affordability and renewed interest in home ownership. property, due to space constraints imposed by the pandemic, were the main drivers of this upturn in demand.
Despite closing the stamp duty reduction window in March 2021, Mumbai and Pune accounted for 41% of home sales in the second half of 2021.
Homebuyers in markets dominated by the IT sector were relatively less affected by pandemic-induced disruptions, making Hyderabad and Bengaluru to dominate sales growth markets (in percentage) in the country in the second half of 2021.
In terms of 12-month residential price change, Chennai, Hyderabad and Bengaluru recorded increases of 7%, 5% and 4% respectively. Mumbai saw a marginal increase of 1%.
Prices were recorded as stable in Pune, Kolkata and Ahmedabad. The National Capital Region recorded a marginal decline of 1%.
According to Knight Frank, the share of sales of the INR 10 million category increased from 21% to 23% during the same reference period.
“The low interest rate regime makes the market conducive for home buyers to purchase residential property. Low interest rates, effective government interventions and speed of sales make the Indian residential market a preferred investment asset class for global institutional investors. Mumbai leads residential asset recovery in India and hit a new high with over 232,903 home sales during the year, ”said Dhaval Ajmera, Director, Ajmera Realty & Infra.
However, 2022 will see prices increase by 5-8%, Puri said. He added that sales will hit the pre-COVID level in 2022 and demand will consolidate to trusted developers.