Residential real estate market beats pandemic blues, sales in top 7 real estate markets increase 71% year-on-year
Home sales rose 71% year on year, with 237,000 units sold in 2021, reaching 90% of pre-Covid 2019 levels. Mumbai Metropolitan Area (MMR) recorded the highest sales with 76 400 units, followed by the National Capital Region (NCR) with 40,050 units sold, according to data from Anarock Property Consultants.
Real estate developers believe that 2022 will set the scene for the growth, new trends and dynamics of the real estate industry.
âThe pandemic has accelerated some existing trends that are promoting increased growth and vitality of suburbs, the digitization of home buying and the growing demand for the hub-and-spoke model in commercial real estate,â said Niranjan Hiranandani, Managing Director of the Hiranandani group.
He said that the acceleration of the vaccination campaign, easing of mortgage interest rates, a dynamic capital market, the injection of liquidity, a record of FDI (foreign direct investment) and the consolidation market were the highlights of 2021, calling it a “year of resilience”.
In the first seven cities, more than 237,000 units were launched during the calendar year, reaching pre-Covid levels of 2019. Project launches increased by 85% during the year. âDespite the pandemic, 2021 has been a fantastic year for India’s housing industry. An equal number of homes have been launched and sold,â said Anuj Puri, chairman of Anarock Group.
The middle segment, priced between 40 lakh and â¹ 80 lakh, held the maximum share of the total number of launches, at 39%, followed by the affordable segment below â¹ 40 lakh, with a share of 26%. The premium segment – â¹ 80 lakh to â¹ 1.5 crore – had a 25% share in the launches of the year.
Highest quarterly sales since 2015
âThe fact that launches have returned to pre-Covid levels is very important and that home sales were only 10% lower in 2019,â Puri said. âThe last quarter has been the best, with home sales in the top 7 cities hitting a new high of 90,860 units. This is the highest quarterly sales performance since 2015. â
A significant increase in homeownership aspirations has been supported by developer discounts and offers, government incentives such as Maharashtra’s stamp duty cuts, and lenders maintaining low ten-year interest rates.
Average residential property prices in the seven major cities increased 3-5% year-on-year in 2021. Bengaluru and MMR recorded the largest price increase of 5%, while Chennai and Kolkata recorded an increase by 3%.
More launches and overall absorption in the first seven cities than in 2020, resulted in minor changes in the available inventory. However, compared to 2019, there was a 2% reduction in on-hand inventory at the end of 2021.
The data shows that the top seven cities together have a total unsold inventory of around 6.38 lakh units at the end of 2021. MMR and NCR have seen annual declines of 10% and 5%, respectively.