Notwithstanding the uncertainties triggered by the pandemic, 2020 ended on a positive note for the true estate sector with typical costs rising by ~1% in Q4 2020, reveals Magicbricks’ most up-to-date PropIndex for the quarter of October-December (Q4) 2020. Surprisingly, through the festive season, the costs for the considerably-in-demand prepared-to-move segment remained steady through Q4 of 2020, but the underconstruction segment rose by 2%, amidst the recovery phase. The improve in below building costs was mainly led by western and southern regions.
At the city level, the western area witnessed the most value increments, and costs in MMR (Mumbai Metropolitan Region) and Ahmedabad rose by ~1% and 1.4%, respectively, when remaining steady in Pune. In the South, when Bengaluru remained pretty much steady, Hyderabad and Chennai witnessed quarterly value increments even even though YoY value modify was nevertheless damaging by 1-3%.
Prices in the Delhi NCR remained flat in Q42020, with a slight decline in the core markets of Noida and Gurugram. However, it has shown an improvement in reasonably priced places such as Noida Extension, New Gurugram, and Sohna.
The house search volumes remained at elevated levels in Q4 2020 at about 30% larger than pre-COVID levels, right after touching more than the 50% hike in Q3 2020, as purchasers continued to make a beeline mainly because of COVID-led availability of distress bargains and festive season discounts. On the provide front, Magicbricks witnessed more than a 25% improve in house listings in Q4, post falling by ~10% in Q3 due to improvement in new launches and secondary industry listings.
Commenting on the PropIndex report, Sudhir Pai, CEO, Magicbricks, stated, “With uncertainties around the economy and jobs now stabilising, we are witnessing signs of growth in the real estate sector as well. The economy has also stopped shrinking since October 2020 and now we are seeing a V-shaped recovery in the real estate sector. There are predictions of net positive GDP growth for the ‘Oct-Dec 2020’ quarter at 0.1% and rebound growth at 10% for FY 2021-22, making it surpass pre-COVID levels. With impetus from the government in the form of stamp duty cuts in some states and first-home buyer incentives, buyer demand is expected to stay at elevated levels in 2021.”
The PropIndex report suggests that numerous companies will reassess their workspace specifications and the work- from-dwelling method in 2021 and that would outcome in heightened volumes of search in 2021 in industrial as nicely as residential segments to accommodate the altering specifications.