Real estate consultancy Knight Frank sold a total of 71,963 residential units in eight major cities in the country during the January-March quarter as compared to Q1 2020, representing a 44% growth.
It said that this ‘healthy development’ encouraged developers to undertake new projects involving 76,006 units in eight cities during this period, or 38% more than in the previous year.
Quarter sales have steadily improved since quarter 2020 and exceeded the pre-COVID quarterly sales average of 2019 in Q1 2021. “This is the second consecutive quarter to surpass the 2019 quarter sales average, we believe the market is recovering, if not it was already done,” a statement by Knight Frank said.
Mumbai and Pune led both launches and sales, a development which, the consultancy said, came in the backdrop of a significant regulatory impetus in the form of an exemption in the stamp duty charge.
In the last few weeks of Q1 2021, Karnataka also announced stamp duty sops costing up to 45 lakhs for home buyers. However, the effect of this concession can only be seen in later quarters.
Higher sales in residential values in most markets helped reduce the intensity of the YoY decline. Hyderabad and the National Capital Region saw a slight increase in prices compared to a year ago. On a sequential basis, housing prices remained stable in most cities and growth was recorded in the case of Chennai and Hyderabad.
“With sub-7% multi-decade lows in home loan interest rates, a substantial improvement in apartment prices, as well as an increase in home savings, seems to have convinced homebuyers to buy their property. Was an opportune time. ” CMD Shishir Baijal.
“While sentiments remain largely positive in the first quarter, the recent spike in COVID-19 cases should be factual for the future. We are yet to understand the full impact of the ‘second wave’ on economic activities and consequent wealth creation, “he said.
Sales of all eight cities – Mumbai, Pune, Bengaluru, Hyderabad, NCR, Chennai, Kolkata and Ahmedabad – saw an increase from 18% in the capital of Karnataka to 81% in the capital of Telangana. The number of launches was comparatively lower in Bengaluru and Chennai, while it was higher in other cities, including a manifold increase in Hyderabad.
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