The sector is facing a gradual slowdown which has made it extremely difficult to sustain the momentum, NAREDCO-Maharashtra president Ashok Mohanani said.
MUMBAI, May 18 (The CONNECT) - The sales or absorption of housing units rose by 21 per cent across top 7 cities in India in the first quarter of 2021.
In all 1,05,183 units were sold during the period against 87,236 in the corresponding period in previous year, PropEquity, India's leading real estate data, research and analytics firm, said in its report.
However, the new supply or launches of housing units decreased by 40 per cent in the same period to 59,737 units from Q1 2020 at 1,00,343 units, the report revealed.
Bengalaru, Chennai, Hyderabad, MMR, NCR and Pune are the cities where home sales witnessed a growth in Q1 2021 versus Q1 2020 at 13 per cent, 29 per cent, 16 per cent, 26 per cent, 6 per cent and 31 per cent respectively while only Kolkata witnessed a downfall of 20 per cent in home sales during the same period.
Ram Naik, Executive Director, The Guardians Real Estate Advisor, attributed the rise in the sales volumes in Q1-2021 to the favourable policy measures by the Central and various State Governments. The pandemic and multiple lockdowns have helped customers realise the importance of owning a home to celebrate all the dimensions of their lives today – personal, social as well as professional, he said.
The mid-income housing segment has performed extremely well and has apparently contributed the most to the unprecedented numbers, Naik said and explained: “We are already seeing the market entering a phase where its velocity is going to be slightly impacted, after two record breaking quarters which were made possible due to extremely low transaction and borrowing costs.” Going forward, he said, the affordable housing segment is bound to outperform all the other categories until the lockdown restrictions are eased to some extent, he opined.
Ashok Mohanani, President, NAREDCO Maharashtra said, with an average 20 percent y-o-y jump in sales in Q1 2021, the top 7 cities have performed considerably well despite the challenges thrown by the pandemic on various businesses including real estate.
Consumers have grabbed the golden opportunity to purchase properties in the last two quarters as the bank loan interest rates were at an all-time low coupled with attractive property prices and reduced stamp duty benefits in few states, Mohanani said. Now, amid the ongoing second wave of Covid and the various curbs due to the lockdown in various States, the sector is facing a gradual slowdown which has made it extremely difficult to sustain the momentum, he added.