Top 7 cities see 113% rise in housing sales in Q3
Representational image
Mumbai: In Q3 2021, housing sales surged 113 per cent y-o-y across the top 7 cities from about 29,520 units in Q3 2020 to nearly 62,800 units in Q3 2021, says a report by Anarock.
If this growth in sales, MMR or Mumbai metropolitan region for 33 per cent of the total sales, followed by NCR with a 16 per cent share.
As per the report, increased sales also improved new launches as it rose in the top 7 cities by 98 per cent yearly from about 32,530 units in Q3 2020 to about 64,560 units in Q3 2021. While MMR continued to see the highest number of new launches (of about 16,510 units) in the quarter, Hyderabad was close behind with a new supply infusion of about 14,690 units.
Interestingly, the mid-segment (homes priced Rs 40-80 lakh) and premium homes (priced b/w Rs 80 lakh to Rs 1.5 Cr) continue to dominate new supply with 41 per cent and 25 per cent shares, respectively. The affordable housing segment (units priced (Rs 40 lakh) saw its supply share reduce to 24 per cent in the quarter, the report said. Average property prices saw a 3 per cent yearly increase across the top 7 citiesto Rs 5,760 per sq. ft. in Q3 2021 from Rs 5,600 per sq. ft. in Q3 2020. Bengaluru leads with an about 4 per cent annual rise - from Rs 4,975 per sq. ft. in Q3 2020 to about Rs 5,150 per sq. ft. in Q3 2021.
"IT and ITeS continues to drive the bulk of housing demand in the top 7 cities," says Anuj Puri, Chairman of Anarock Group.
"In Q3 2021, significantly improved job security and robust hiring in the IT/ITeS and financial sectors piggybacked on record-low home loan rates and growing homeownership sentiment. 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," he adds.
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 per cent 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 per cent yearly decline.