Average prices across market remain stable while Chennai, Hyderabad, and Kolkata markets see marginal increase
Overcoming the drag induced by the pandemic, residential property sales volume grew by 92 per cent in the July-September quarter in India, registering a sale of 64,010 units compared to 27,453 units sold during the corresponding period last year, according to the latest report by Knight Frank India. New residential unit launches increased by 90 per cent to 58,967 units in Q3 2021, a significant recovery compared to 27,232 launches last year.
Meanwhile, average prices across markets remained stable in the said period with no major move in either direction, while Chennai, Hyderabad, and Kolkata markets saw a marginal price increase, said the India Real Estate Update (July-September 2021) report by Knight Frank India.
Stamp duty cuts have proved to be an effective demand stimulant in the case of Mumbai, Pune, and Kolkata, where the state governments have applied a broad-based cut across ticket sizes in the primary market. On the supply side, developers have responded well to the shift in homebuyer sentiment and pursued an aggressive pricing strategy over the year with spot discounts, financing deals, stamp duty waivers, and other freebies to entice buyers.
“There has been an exciting improvement in sales and launches in Q3 2021. Sales momentum that picked up at the beginning of the year has continued in Q3 2021. The market seems to have factored in the very low likelihood of a complete lockdown as was seen last year due to the ample availability of Covid vaccine,” said Shishir Baijal, chairman and managing director, Knight Frank India. He added that comparatively lower residential prices, attractive interest rates, and higher household savings rates over the past year should support housing demand going forward.
According to Rohit Poddar, managing director, Poddar Housing and Development, with the robust recovery of the real estate and construction segment, job market revival, and sizeable vaccination numbers, sales of both residential and commercial properties are showing strong signs of revival. “The share of home sales in the under Rs 50 lakh ticket size category standing at 43 per cent in Q3 2021 reflects the high demand for affordable housing in and around metros. The upcoming festive season will boost this trend as the end-consumers and investors alike will look towards making the purchase, ultimately reflecting further growth," he said.
Meanwhile, office transactions also recorded strong quarterly growth in Q3 of 2021, despite a much more severe second wave of Covid infections and the looming threat of a third wave. The total office space absorbed across major cities was at 12.5 million sq. ft in the third quarter, representing 168% year-on-year growth.
“Looking at the commercial segment, the sector is starting to boom as things start easing out and the same is evidently visible. The growth of the commercial real estate segment signifies the strengthening of businesses despite the second wave. As restrictions ease-out further, the demand for commercial property is surely expected to overpower pre-pandemic levels," Poddar said.