At least four top property markets have seen residential sales volumes in Q2 FY21 exceed 50 percent of their quarterly average before the COVID-19 pandemic, a study revealed.
A real estate report released by property consultant Knight Frank claims that in the July-September quarter, developers across eight property markets sold 54 percent of their average quarterly sales figures in 2019.
“While the overall real estate sector dynamics continue to remain strained, there has been a meaningful improvement in sales and launches in the quarter,” said the report, authored by Knight Frank’s Vivek Rathi (Director, Research) and Yashwin Bangera (Vice President, Research).
In Chennai, for instance, developers sold 3,085 new homes between July and September, which is a healthy 73 percent of the average number of 4,240 homes it sold per quarter last year.
NCR and Mumbai, the report said, registered 57 and 50 percent of their average quarterly sales in 2019, in Q2 FY21.
Developers in NCR sold 6,147 homes this quarter, while Mumbai sold 7,635 homes in this period. Not to be left out, Pune registered sales of 4,918 homes this quarter — 60 percent of its average quarterly sales number in 2019.
Smaller lending rates and discounts fuelling demand
“Home loan rates at a multi-decade low of sub-7-percent, a fall in residential prices, aggressive marketing of ready inventory and indirect discounts or freebies to buyers have helped move the demand needle (in Q2 FY21),” the report said.
However, the odd one out and one of the poorer performers was Bengaluru, where developers sold a mere 4,912 units in July-September against its 2019 quarterly sales average of 12,019.
Together, Mumbai, Bengaluru and NCR accounted for 56 percent of all homes sold in Q2 FY21, while the average sales share of the three cities in 2019 was 62 percent.
Price-correction in six property markets
In good news for prospective buyers— although along expected lines — real estate prices have also seen a 3 to 7 percent year-on-year fall in the July-September quarter. While Chennai registered the greatest price-correction at 7 percent, Mumbai and NCR registered 2 percent and 5 percent respectively, by way of price correction.
Only Bengaluru and Hyderabad the report said saw prices appreciate year-on-year — by 3 and 4 percent, respectively. “Bengaluru and Hyderabad are the only markets that saw prices grow year-on-year as developers in these predominantly end-user markets sustained pricing power in a favorable demand-supply scenario,” said the report.
Maharashtra sales bounce back, Kolkata shows promise
Developers in Maharashtra have had some reason to cheer amid a gloomy 2020 thanks to a stamp-duty cut of 3 percent, which has resulted in a doubling of sales in Mumbai and Pune in July-September when compared to the previous quarter.
Surprisingly, Kolkata has stunned real estate pundits, registering a 139 percent spike in sales (3,921 units sold in July-September versus 2,817 units sold on average per quarter in 2019) and launches.
Developers in the city of joy, the report reveals, didn’t hold back on launches either, introducing 1,934 new homes in the market, which is a 137 percent rise from last year’s average quarterly launch numbers.
Meanwhile, in 2019, India's top eight property markets sold an average of 61,467 homes per quarter. The July-September quarter this year has that number at 33,403, which is approximately 54 percent of pre-COVID sales.