The fast-paced vaccination drive, robust hiring in the IT/ITeS and financial sectors piggybacking on record-low home loan rates led to housing sales across top seven cities increasing from 29,520 units to 62,800 units in the third quarter of 2021 with MMR accounting for 33% of the total sales, followed by NCR with a 16% share, an analysis by property consultant Anarock has said.
New launches in the top 7 cities rose by 98% yearly – from approximately 32,530 units in Q3 2020 to approximately 64,560 units in Q3 2021. While MMR continued to see the highest number of new launches (of approximately 16,510 units) in the quarter, Hyderabad was close behind with a new supply infusion of approximately 14,690 units. NCR added approximately 8,410 units in Q3 2021 - a yearly rise of 19%.
Approximately 78% of the new supply was added in sub-Rs 40 lakh to Rs 1.5 crore price bracket.
The seven cities tracked by Anarock are Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad and Pune.
Housing prices appreciated by 3 per cent across the seven cities to Rs 5,760 per square feet in Q3 of 2021 calendar year from Rs 5,600 per square feet in Q3, 2020. Bengaluru leads with an approx. 4% annual rise – from Rs 4,975 per sq. ft. in Q3 2020 to approximately Rs 5,150 per sq. ft. in Q3 2021.
Interestingly, the mid-segment (homes priced Rs 40-80 lakh) and premium homes (priced between Rs 80 lakh to Rs 1.5 crore) continue to dominate new supply with 41% and 25% shares, respectively. The affordable housing segment (units priced less than 40 lakh) saw its supply share reduce to 24% in the quarter, the analysis said.
“IT/ITeS continues to drive the bulk of housing demand in the top 7 cities," says Anuj Puri, Chairman - ANAROCK Group.
"The ongoing WFH culture continues to influence residential sentiment on two major fronts - overall housing demand and unit sizes. The fast-paced vaccination drive is an added sentiment booster, especially in terms of increased site visits."
"With new launches increasing by 98% and housing sales skyrocketing by 113%, Q3 2021 stands in stark contrast to this period last year,"said Puri.
"MMR and NCR together accounted for nearly 50% of the overall housing sales in the quarter,” he said.
In previous periods of unprecedented demand, housing prices invariably rose steeply. In the current pandemic period, they have remained more or less stable, and developers were actively sweetening the deal with added offers and discounts in this period, effectively keeping a lid on the overall cost of property acquisition.
MMR distinguished itself with an impressive 8% y-o-y reduction in its unsold stock. Unsold inventory in the region stood at 1.92 lakh units as of Q3 2021 end. NCR saw a 3% yearly decline.