The first quarter saw a total of 1,05,183 units sold across the country in comparison to just 87,236 in the same period last year
Housing sales pan-India saw a 21 percent rise between January and March, 2021 compared to the same period last year. The first quarter saw a total of 1,05,183 units sold across the country in comparison to just 87,236 in the same period last year, according to data by real estate research firm PropEquity. However, the spike comes even as developers have dialed down on their product launches.
PropEquity data revealed that only 59,737 homes were launched between January and March — a far cry from over 1 lakh units launched in the same period last year. However, better sales have given developers reason to cheer.
"Consumers have grabbed the opportunity to purchase homes in the last two quarters as bank interest rates were at an all-time low coupled with attractive prices and reduced stamp duty in a few states," said Ashok Mohanani, President, NAREDCO Maharashtra.
'Momentum will not sustain'
The industry is cautious about reading too much into this spike especially since it comes ahead of India's second wave of COVID infections. "Amid the ongoing second wave of COVID and the curbs due to lockdown in various states, the sector is facing a gradual slowdown, which has made it extremely difficult to sustain the momentum," Mohanani added.
However, some positives remain — like the fact that top property markets like Chennai, MMR and Pune are showing encouraging signs of revival. PropEquity data revealed that Chennai and Pune in particular had registered a year-on-year sales spike of 28 and 31 percent, respectively, while MMR sold 26 percent more homes during the same period.
Experts attribute the spike in sales to the mid-income housing segment, which has contributed the most. "In the future, it's the affordable housing segment that will outperform other categories until the lockdown measures are eased to some extent," said Ram Naik, Executive Director, Guardians Real Estate Advisory.
"We are already seeing the market enter a phase where its velocity is going to be slightly impacted after two record-breaking quarters made possible due to low transaction and borrowing costs," Naik added.
(Edited by : Jerome)