Various measures taken by the government at the Centre as effectively as by many state governments to enhance purchaser self-assurance have began to show positive outcomes, with property sales in India’s eight prime residential markets displaying a quarterly boost of 12% in the January-March quarter (Q1) of CY (calendar year) 2021 compared to October-December quarter of 2020, shows a report by PropTiger.com.
According to Real Insight – Q1CY21, builders sold a total of 66,176 houses in the key market place in the January-March quarter of 2021, a time marked with many state governments, which includes Maharashtra and Delhi, announcing stamp duty and circle price reductions to enhance purchaser sentiment and housing sales.
When compared to Q1CY20, on the other hand, property sales in the markets covered in the evaluation showed a decline of 5% from 69,555 units, a thing that can be termed marginal, thinking about that the January-March period in 2020 was the final quarter ahead of the pandemic spread began in India, forcing the government to announce a nation-wide lockdown late in March 2020 that brought financial activity in the nation to a standstill.
“As the economy gradually marches towards recovery, as reflected in global rating agencies and think-tanks revising India’s growth forecasts for 2021 and 2022, the residential real estate market in the country is also seeing a positive momentum on the back of various measures taken by the Centre and state governments, the RBI and the entire banking system (as demonstrated in home loan rate reductions). This positive change is visible in the first quarter through an increase in supply numbers, an indication that developers are more comfortable now with regard to liquidity support and buyer sentiment. Metrics on the demand side have also been largely stable with the job market opening up again in various industries, giving people the confidence to take advantage of a property market that is the most affordable for home buyers in years,” mentioned Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com.
“Though the recent surge in COVID infections concentrated in a few markets is a concern, we expect the residential market recovery to continue,” he added.
Supply increases 49% year-on-year
On the provide side, a total of 53,037 units have been launched across India in the course of the 3-month period, which saw the Union Cabinet approving a Bill to set up a Rs 20,000-crore Development Finance Institution to give extended-term capital assistance for infrastructure improvement in India. This marked an annual development of 49% in housing provide. A quarter-on-quarter (QoQ) comparison shows new launches declined 2% when compared to the final quarter of CY20.
Prices remained largely steady except in Ahmedabad and Hyderabad
As anticipated, no extraordinary upwards movement was observed in typical costs of home in the key or new houses market place. While annual development remained largely flat or in low single digits in most markets, Ahmedabad and Hyderabad stood out, with 5% annual development in typical prices of home.
“The Maharashtra government’s decision to temporarily lower stamp duty on property registrations helped mitigate the steep decline in sales for the Mumbai and Pune markets that contribute the most to the national stock of unsold homes. The state government should have continued with the benefit of reduced rates to keep the sales momentum going. We also expect states like UP and Haryana to announce stamp duty and circle rate reductions in order to provide support to crucial housing markets of Noida and Gurugram in the National Capital Region,” mentioned Mani Rangarajan, Group COO, Housing.com, Makaan.com and Proptiger.com.
“In a show of great intent to help buyer sentiment, almost all banks have lowered home loan interest rates to the 6.90% level. We expect this low rate regime to continue, as the Indian economy attempts to make a recovery from the pandemic-induced GDP contraction,” he added.