The real estate market is seeing an improvement in consumer sentiment, said Dhruv Agarwala, CEO of PropTiger.com. He said that Q4CY20 saw 68 percent increase in sales quarter-on-quarter (QoQ).
“Overall if I look at the real estate market, there is a clear improvement in consumer sentiment towards purchase of real estate and that is very evident on the various online platforms. We have clearly seen a distinctive increase in enquiries as well as visits to these online platforms suggesting that consumer sentiment towards real estate is on the rise. Sales across the country - there has been a 68 percent improvement QoQ if we compare Q4 of 2020 to Q3 of 2020. So there is an increase in consumer sentiment,” he said in an interview with CNBC-TV18.
According to Agarwala, the proposed reduction in premiums could result in 7-8 percent drop in property prices which could further boost sentiment.
“My estimate is that going forward as the stamp duty cuts are going to continue at least in Maharashtra till the end of March and now there is also a proposed reduction in premiums which I think will impact real estate prices in a way where you can at least see a 7-8 percent reduction in prices for the end consumer. That is likely to provide continued impetus to residential real estate,” he said.
Mumbai real estate registrations soared in December, but Agarwala said that Q4CY21 sales in Mumbai are 30 percent lower year-on-year (YoY).
“If you look at the numbers for Mumbai on an annualised basis, if you compare sales numbers in calendar year 2020 versus calendar year 2019, it is about 51 percent down. However, if you look at numbers as far as Q4 is concerned, it is about 30 percent lower than Q4 in 2019,” he said.
He also said that 2020 saw an increased appetite for ready-to-move homes, but people have not stopped buying under-construction homes.
“The closer you get to completion, the more the appetite for such homes because people don’t want to take that completion risk or execution risk,” he said.Watch video for more.