Real estate developers across India's eight major property markets sold over 64,000 homes between July and September, registering a whopping 92 percent year-on-year growth in residential sales, data from Knight Frank India has revealed.
In the same period last year, residential sales stood at 27,453 units, as the economy had just begun recovering from the throes of the first COVID-19 wave and a nationwide lockdown. Over 50 percent of residential sales in the July-September quarter this year, was accounted for by just three cities - Hyderabad, Bengaluru and Mumbai, which registered individual sales spikes of 272 percent, 131 percent and 109 percent respectively.
The total sales number of 64,010 units in July-September is also 4 percent higher than the average quarterly sales of 2019 — another indication that the residential market may be inching towards pre-COVID recovery.
According to Knight Frank India data, homebuyers spent more on their purchases, this year. The share of residential units priced between Rs 50 lakh and Rs 1 crore was 35 percent of all sales registered in July-September, in comparison to 32 percent last year.
While the average weighted price of a home remained unchanged on a Q-o-Q basis pan-India, prices of homes in Chennai, Hyderabad and Kolkata saw a marginal spike when compared to last year. Residential launches have shown a surge of 90 percent in July-September 2021, Knight Frank’s data revealed. The period saw 58,967 new homes launched when compared to 27,232 launches last year.
'Deals, discounts & stamp duty cuts boosted sales'
While discounts, deals, stamp duty waivers and freebies from developers have played a key role in boosting sales, the report notes that stamp duty cuts in Mumbai, Pune and Kolkata may have been a strong stimulator of demand.
"Stamp duty cuts were a significant intervention applied by several state governments to spark a sharp recovery in sales volumes," said Rajani Sinha, Chief Economist and National Director (Research) at Knight Frank India, "These measures have convinced the fence-sitters to make the home buying decision."
The overall spike in residential sales makes for encouraging reading as the property market enters the festive season with developers hoping for sustenance in momentum. "The market is gearing up for new project launches and consumers are likely to reciprocate," said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
"While financial stress remains a significant factor for developers across markets, homebuyers' preference for grade-A developers and their access to cheaper credit has positioned them well in this recovering market," he added.
First Published: IST