Spurred by stamp duty cuts, additional reductions in dwelling loan prices, and ongoing developer discounts, the housing sector in the best 7 cities of the nation has staged an impressive comeback post COVID-19. ANAROCK’s Q1 2021 information shows that housing sales in the best 7 cities improved by 29% and new launches by 51% for the duration of this quarter against the corresponding period in 2020.
Around 58,290 units had been sold in Q1 2021 – a yearly enhance of 29% – in comparison to 45,200 units in Q1 2020 – successfully breaching pre-COVID levels. NCR, MMR, Bengaluru and Pune with each other accounted for 83% of the sales in the quarter. MMR and Pune with each other accounted for 53% of housing sales in the quarter – MMR sales rising by 46% annually, and Pune by 47%. With about 8,670 units sold, Bengaluru was the only city in the best 7 to not record a important yearly modify in total sales numbers in this quarter.
Hyderabad recorded the maximum rise in sales in this quarter amongst the best cities. City sales improved by 64% – from 2,680 units in Q1 2020 to about 4,400 units in Q1 2021.
New launches in the best 7 cities yielded 62,130 units in Q1 2021, against 41,220 units in Q1 2020. Again, Bengaluru was the only city to see a 11% yearly drop in new launches. MMR, Pune, and Hyderabad with each other contributed 66% of the total new provide in the quarter.
Despite spiralling new launches in this and the earlier quarter, unsold inventory in the best 7 cities saw a nominal yearly decline – from 6.44 lakh units towards Q1 2020-finish to close to 6.42 lakh units by Q1 2021-finish. However, on a q-o-q basis, unsold stock rose by 1% due to a robust healthier new launch pipeline in most cities.
Commenting on the identical, Anuj Puri, Chairman, ANAROCK Property Consultants, says, “Demand boosters such as 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. Egged on by buoyant sales and enthusiastic consumer sentiment in the October-December period, developers launched several new projects in this quarter – with some spill-over from the pandemic-dampened 2020 pipeline.”
“MMR and Pune were the most active in this quarter since the limited-period stamp duty cuts and other sops and discounts substantially reduced acquisition cost,” says Puri. “MMR’s homebuyers have responded proactively to the bottomed-out property prices in the country’s most expensive real estate market. This is adequately vouchsafed by the significant rise in property registrations in Mumbai in the first two months of the year.”
Housing affordability will potentially stay really favourable all through 2021. If the present sops and incentives continue, we will see sustained vibrancy in the upcoming quarters as effectively. End-customers will drive maximum demand.
Mid-segment housing saw the maximum new launches in the quarter with a 43% all round share, with the economical housing segment accounting for 30%. The provide of luxury housing (priced >INR 1.5 crore) also rose by 31% in Q1 2021 against the corresponding period in 2020.
Price Movements
Average house rates in the best 7 cities saw some movement in Q1 2021, with most cities recording a rise of 1-2% more than Q1 2020 – except Kolkata, exactly where rates remained stagnant. NCR and Bengaluru saw house rates rise by 2% for the duration of the year.
Unsold Inventory
Changes in the all round unsold stock in Q1 2021 more than Q1 2020 had been negligible, as new provide in between Q4 2020 and Q1 2021 outpaced all round absorption numbers. MMR witnessed the highest yearly reduction in unsold inventory of 8%, although Bengaluru and Kolkata witnessed yearly reductions of 7% every. In contrast, unsold stock improved by 81% in Hyderabad in the identical period, due to considerable new provide hitting this city in the final two quarters – Q1 2021 and Q4 2020.