Housing sales are likely to rise by 15-20 per cent annually during the current calendar year across eight major cities on pent up demand and low-interest rates on home loans, property consultant PropTiger said on Tuesday.
During the 2020 calendar year, sales had plunged 47 per cent to 1,82,639 units from 347,586 units in 2019, mainly because of strict nationwide lockdowns imposed in March last year to control the COVID-19 pandemic.
As per PropTiger's 'Real Insight Residential Q3 2021 report, housing sales have increased by 12 per cent to 1,38,051 units during the January-September period of the current calendar year from 1,23,725 units in the corresponding period of 2020. PropTiger.com, owned by Australian firm REA group, tracks the primary housing market of eight major cities -- Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR) and Pune – in India.
"Driven by pent up demand and festive sales as well as the gradual recovery in the Indian economy, improved job market and low-interest rates, housing sales are likely to rise by 15-20 per cent above 2020 level during the current calendar year despite the strong second wave of the COVID-19 pandemic,'' said Rajan Sood, Business Head, PropTiger.com.
Property sales picked up from July onwards as the infection rates waned, he added. Despite the revival in the residential real estate market, Sood said housing sales might still fall short of 2019 numbers.
As per market estimates, PropTiger said that housing sales could rise by a high double-digit percentage during the October-December period this year from 58,914 units in the same quarter last year.
"We are seeing heightened property search activity on Housing.com, which points towards a positive turnaround for the residential real estate market for 2021,'' said Ankita Sood, Director and Head of Research, PropTiger.com, Housing.com & Makaan.com. Reflecting the optimism in the sector, she said Housing.com's IRIS index, which is a leading indicator to assess the upcoming residential demand in the country, closed at an all-time high in September this year.
The demand drivers over the last one year have been low-interest rates on home loans, stable housing prices in the last few years, discounts & special offers from builders to speed up the liquidation of their stocks and stamp duty reduction by various state governments, PropTiger said.
The adoption of work-from-home policy has also led to a rise in housing demand, it added. The belief in homeownership has gained momentum, even among young millennials, the consultant noted. After the outbreak of the pandemic, PropTiger said the consolidation of housing demand towards big, listed and reputed developers has also gained momentum.
(With inputs from PTI)
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