India Real Estate Sector Recovery September 2020 Report; Housing Sales Rise In Mumbai, Delhi NCR Chennai,
On an annual basis, the price of houses in the second quarter has come down by 3 to 7 percent on average.
- In the second quarter, Mumbai Metropolitan Region, Bengaluru, NCR and Pune accounted for 84% of sales.
- Total 49,905 units were sold in the fourth quarter of FY20
Recovery has returned to the real sector. Residential units have witnessed an increase in sales in the second quarter of the current financial year. According to Knight Frank’s report, residential sales in the eight major cities of the country increased by 246% to 33,403 units as compared to the first quarter. This includes Kolkata, Chennai, Mumbai, Pune, Bangalore, Hyderabad, Delhi NCR and Ahmedabad cities.
House sales increase
According to the report, a total of 33,403 units were sold in the second quarter of FY21, which is 33% lower than the residential sales in the fourth quarter of FY20. Total of 49,905 units were sold in the fourth quarter of FY20. On a year-on-year basis, sales in September declined by 46%, with 61,467 units sold in the same period of 2019.
Anuj Puri, chairman of ANAROCK Property, says that Mumbai Metropolitan Region, Bengaluru, NCR and Pune accounted for 84% of sales in the second quarter. MMR has the highest sales of 9,200 units. 5400 units have been sold in Bangalore, 5200 units in NCR and 4850 units in Pune.
Low price is also a big reason
The reason for the increase in sales is the fall in the prices of properties in the real estate market. On an annual basis, in the second quarter, prices have reduced by 3 to 7 percent on average. For example, prices have fallen by 3% in Bangalore, 4% in Hyderabad and 7% in Chennai. Apart from this, attractive rates of home loans have also become a major reason for the increase in sales.
Shishir Baijal, managing director and chairman of Knight Frank, says that if the economy shows signs of improvement in the next few months, demand for residential units could reach pre-covid levels. The Maharashtra government, for example, has reduced stamp duty, which will provide relief to the real estate sector.
Sahara will be available through the festive season
On this, Anuj Puri says that this step of the state government will give encouragement to the developers. On the other hand, the interest rates of rock-bottom home loans are also attractive for home buyers. Puri says that due to the upcoming festive season, the sales figures for the October-December quarter may reach pre-Kovid levels.