Residential real estate in the country’s top seven property markets has staged a comeback with sales exceeding pre-pandemic levels, driven by record-low interest rates, discounts offered by developers, lower prices and stamp duty cuts in key areas.
The improved sales momentum has lifted confidence among realty developers, pushing them to launch more projects as indicated by the rise in new offerings across markets.
Residential property sales have grown 29% to 58,290 apartments in the January-March quarter so far, led by a robust performance in the Mumbai Metropolitan Region, Pune and Hyderabad. New launches rose 51% to 62,130 apartments, showed Anarock Property Consultants data. MMR, Pune, and Hyderabad contributed 66% of the total new supply in the quarter. Rounding out the top seven are the National Capital Region, Bengaluru, Chennai and Kolkata.
“Demand boosters like stamp duty cuts, further reductions in home loan rates by most banks to 6.70% and ongoing developer discounts and offers helped the residential sector stage a convincing comeback in Q1, 2021,” said Anuj Puri, chairman, Anarock Property Consultants. “Egged on by buoyant sales and enthusiastic consumer sentiment in the October-December period, developers launched new projects in this quarter, with some spillover from the pandemic dampened 2020 pipeline.”
Aided by stamp duty cuts, MMR and Pune together accounted for 53% of housing sales in the quarter. MMR sales rose 46% from the year earlier, and Pune sales by 47%. With around 8,670 units sold, Bengaluru was the only city not to record a major yearly change in total sales numbers in this quarter.
Registration of property transactions in Mumbai, the country’s biggest realty market, has continued to rise at a rapid pace, crossing 13,150 agreements so far in March, showed data from the office of the Inspector General of Registration, Maharashtra.
According to Puri, housing affordability will potentially remain favourable throughout 2021. If the current sops and incentives continue, sustained vibrancy can be expected in the upcoming quarters as well with endusers driving demand.
The key cities contributing to new unit launches in the first quarter were MMR, Hyderabad, Pune, and Bengaluru — together accounting for 79% of supply addition.