Top 7 cities see 113% rise in housing sales, new launches jump: Report

In Q3 2021, housing sales rose 113% y-o-y across the top 7 cities -- from ~ 29,520 units in Q3 2020 to nearly 62,800 units in Q3 2021, Anarock announced in its latest report.

MMR or Mumbai metropolitan region for 33% of the total sales, followed by NCR with a 16% share.

As per the report, surged sales also augumented new launches as it rose in the top 7 cities by 98% yearly - from ~ 32,530 units in Q3 2020 to ~ 64,560 units in Q3 2021. While MMR remained to see the maximum number of new launches (of ~ 16,510 units) in the quarter, Hyderabad followed with a new supply infusion of ~ 14,690 units.

Remarkably, the mid-segment (homes priced Rs. 40-80 lakh (US$ 53,892.76-107,785.52)) and premium homes (priced b/w Rs. 80 lakh (US$ 107,785.52)to Rs. 1.5 crore (US$ 202,056.75)) continue to dominate new supply with 41% and 25% shares, respectively. The affordable housing segment (units priced (Rs. 40 lakh (US$ 53,892.76)) saw its supply share reduce to 24% in the quarter, the report said.

Average property prices saw a 3% yearly increase across the top 7 cities - to Rs. 5,760 (US$ 77.59) per sq. ft. in Q3 2021 from Rs. 5,600 (US$ 75.43) per sq. ft. in Q3 2020. Bengaluru leads with an approximately 4% annual rise - from Rs. 4,975 (US$ 67.02) per sq. ft. in Q3 2020 to approximately Rs. 5,150 (US$ 69.37)per sq. ft. in Q3 2021.

"IT/ITeS continues to push the bulk of housing demand in the top 7 cities," said Mr. Anuj Puri, Chairman of ANAROCK Group.

"In Q3 2021, considerably improved job security and robust hiring in the IT/ITeS and financial sectors piggybacked on record-low home loan rates and increasing homeownership sentiment. The ongoing work from home culture continues to impact residential sentiment on two major fronts - overall housing demand and unit sizes. The fast-paced vaccination drive is an added sentiment booster, especially in terms of increased site visits."

In previous periods of unprecedented demand, housing prices consistently rose sharply. In the current pandemic period, they have remained more or less steady, and developers were actively sweetening the deal with added offers and discounts in this period, effectively keeping a lid on the overall cost of property acquisition.

MMR distinguished itself with an impressive 8% y-o-y reduction in its unsold stock. Unsold inventory in the region stood at 1.92 lakh units as of Q3 2021 end. NCR saw a 3% yearly decline.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.