Tuesday, January 18, 2022

Housing sales grew by 15 percent in top 7 cities in Oct-Dec 2021: Report

COVID-19 proved to be a watershed event for the real estate sector, with residential sales witnessing cyclical fluctuations. However, the onset of the festive period, both in 2020 and 2021, remained promising amid the pent up demand, lucrative offers by builders and low home loan interest rates. Resultantly, housing sales across the top eight markets grew by nearly 15 percent YoY.  Average property values also moved north QoQ; however, marginally. Ready homes or projects nearing completion continued to be the preferred choice for buyers against under-construction properties. The invasion of Omicron- the new COVID-19 variant in November did disrupt the markets; however, the impact was meek.

 New supply in the quarter improved significantly. Nearly 450 projects were added in Oct-Dec 2021, which were almost double the residential supply introduced in Apr-Jun 2021.

The inventory overhang across the top eight metro cities as of December 2021 stands at around 6.5 lakh units.

Speaking on the report, Maneesh Upadhyaya, Chief Business Officer, 99acres.com, averred, “Residential sales in this quarter recovered more than 90 percent in volumes against those recorded in 2020 across the top eight cities. The rise in sales did not impact the average listing prices of residential apartments, which maintained status quo over the previous two quarters. Rental values of apartments, however, went downhill by an average of 2-4 percent across metros, YoY, with continued work-from-home trend emerging as a significant growth deterrent.

A surge in Omicron cases, however, dented the growth and started impacting site visits and deal closures towards the end of the quarter. The new variant, termed as the bearer of wave 3 of COVID-19 in India, is likely to impact the numbers in subsequent months. If weekend lockdowns and night curfews convert into extended lockdowns, home buying sentiment, project deliveries, and housing supply might have to bear the brunt.”

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