The real estate market may have been hit hard due to shutdowns and other COVID-related disruptions, but not anymore. As the economy returns to normal, the country’s residential real estate market has rebounded.
Data from industry research firm PropTiger shows residential home sales jumped 365% year-over-year (YoY) in the April-June period. While in April-June 2021, some 15,970 units were sold in the eight main metropolitan markets, this time the levy increased to 74,330 units.
What is more encouraging, according to industry experts, is the scale of growth seen in major markets like Mumbai and Bangalore. In Mumbai, the country’s largest residential real estate market, new home sales jumped 673% year-on-year to 26,150 units in the quarter from 3,380 units last year.
While in Bangalore – the third largest market after Delhi-NCR – some 8,350 units were sold this quarter. That’s 425% more than last year’s 1,590 units. In Delhi-NCR, however, the scale of growth was relatively weaker – at 60% – from 2,830 last year in the same quarter to 4,520 units.
“Even though the RBI raised the repo rate twice during the quarter to 4.90%, home loans remained largely affordable for the period under review. The biggest boost to housing demand has been the heightened importance of owning a property which has been further supported by consumer confidence in the overall economic scenario and impending income stability,” said Vikas Wadhawan, Chief Financial Officer of the group at REA India, owner of Housing. com, PropTiger.com and Makaan.com.
In addition, as soon as demand started to pick up, real estate agents began to launch new projects that had been lacking in recent years. Data shows new launches increased 368% year-on-year across the top eight markets to 102,130 units from 21,840. While last year the market was impacted due to the second wave of COVID , the growth in April-June was noticeable even compared to the previous quarter, when the residential market was already booming.
On a quarterly basis, new launches jumped 28% from 79,530 units in the January-March 2022 quarter. According to Ankita Sood, head of research at REA India, developers returned to the market “in full boom during the April-June quarter, which catapulted new supply to 2015 levels.
“Looking at the encouraging overall trends, we expect continued demand momentum to build strength, particularly in the midst of the upcoming holiday season, pushing the growth trajectory further into the next quarter,” he said. she declared.