Housing sales surged by 113% y-o-y in the top seven cities from approx 29,520 units in Q3 2020 to nearly 62,800 units in Q3 2021, according to a report by ANAROCK. Most sales (33%) was recorded in the Mumbai Metropolitan Region (MMR) followed by NCR (16%).
Compared to Q3 2020, average property prices rose 3% y-o-y in Q3 2021 in the top seven cities due to increased development input costs – to Rs 5,760 per sqft in Q3 2021 from Rs 5,600 per sqft in Q3 2020. Bengaluru witnessed a 4% annual rise to Rs 5,150 per sqft from Rs 4975 per sqft in the same period last year.
The report said that new launches in the top 7 cities rose by 98% yearly – from approx. 32,530 units in Q3 2020 to approx. 64,560 units in Q3 2021. While MMR continued to see the highest number of new launches (of approx. 16,510 units) in the quarter, Hyderabad was close behind with a new supply infusion of approx. 14,690 units.
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Interestingly, the mid-segment (homes priced Rs 40-80 lakh) and premium homes (priced b/w 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 <Rs 40 lakh) saw its supply share reduce to 24% in the quarter.
Hyderabad recorded sales of approx. 6,735 units in Q3 2021 – a massive spike of over 300% over Q3 2020, mainly due to a continuous flow of new supply over the last 4-5 quarters.
MMR and Pune also saw a significant sales surge in the quarter compared to other top cities – by 128% (approx. 20,965 units) in MMR and 100% (approx. 9,705 units) in Pune.
NCR and Bengaluru saw sales in Q3 2021 increase by approx. 97% (approx. 10,220 units) and 58% (approx. 8,550 units) respectively against Q3 2020.
Chennai saw approx. 3,405 units sold in Q3 2021 – a significant increase of 113% over Q3 2020.
Kolkata saw 2X sales jump in Q3 2021 against Q3 2020, with approx. 3,220 units sold in this quarter.
Commenting on the above trends, Anuj Puri, Chairman – ANAROCK Group, said: “IT/ITeS continues to drive the bulk of housing demand in the top 7 cities…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.”
“With new launches increasing by 98% and housing sales skyrocketing by 113%, Q3 2021 stands in stark contrast to this period last year. MMR and NCR together accounted for nearly 50% of the overall housing sales in the quarter,” he added.