IBEF: March 26, 2021
According to property consultancy Anarock, housing sales in seven major cities are expected to increase by 29% YoY in January-March 2021, at 58,290 units, driven by rising demand as a result of low home loan interest rates and Maharashtra government stamp duty reductions.
On Thursday, the leading real estate brokerage firm published data on transactions and new launches in seven cities' primary residential markets.
According to Anarock, in the first quarter of FY21, 58,290 homes are estimated to be sold in the top seven markets, up from 45,200 in the first quarter of FY20.
In the quarter, the Mumbai Metropolitan Region (MMR) and Pune together accounted for 53% of all housing sales.
Anarock Chairman, Mr. Anuj Puri said, “Stamp duty reductions, home loan rate reductions by most banks (to 6.70%), and continuing developer discounts and deals have helped the residential sector stage a compelling comeback.”
He said, “Since the limited-period stamp duty reductions and other sops and discounts significantly reduced acquisition costs, MMR and Pune have been the most involved in this quarter.”
He added, “MMR's homebuyers have reacted proactively to the country's most valuable real estate market's bottomed-out property prices. The large increase in property registrations in Mumbai in the first quarter of FY21 is a testament to this.”
Housing sales in MMR are expected to increase by 46% to 20,350 units in January-March 2021, up from 13,910 units the previous year.
Pune is forecast to record a 47% increase in sales, at 10,550 units.
Among the top cities, Hyderabad reported the greatest increase in revenue in this quarter. From 2,680 units in the first quarter 2020, housing sales are expected to increase by 64% at 4,400 units in the first quarter 2021.
In Chennai, 2,850 units are expected to be sold, an increase of 30% from 2,190 units in the first quarter of 2020.
Housing sales in Kolkata are expected to increase by 10% at 2,680 units and Delhi-NCR by 8% at 8,790 units. Sales in Bengaluru are projected to increase slightly to 8,670 units.
According to Anarock, unsold inventory in the top seven cities decreased marginally YoY, from 6.44 lakh units in the first quarter of FY20 to ~ 6.42 lakh units in the first quarter of FY21.
The report added that in the first quarter of FY21, average property prices in the top seven cities increased by 1-2% YoY, with the exception of Kolkata, where prices remained unchanged.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.