Mumbai, Dec 24(Agency) India’s residential sector is seeing an acceleration in sales leading to a fast paced recovery from the impact of the pandemic. Residential sales accelerated by 51% in Q4 as compared to Q3 2020. It is important to note that this improvement has been holistic with seven key residential markets showing an uptick in sales.
Mumbai, the country’s largest contributor to sales for this quarter accounts for 23% of the overall sales, while the Delhi NCR market accounts for 20%. Pune saw the maximum increase in sales activity as compared to the third quarter at 147% with 3, 323 units sold in all. “GDP in the July-Sep quarter of 2020 showed higher than expected recovery. During the same quarter, the housing market showed some initial signs of recovery as well, with sales increasing by 34% on a sequential basis. In the backdrop of issues like job security and fall in income levels, this uptick in sales was a significant achievement. The fourth quarter has witnessed a 51% improvement in residential sales, and not just that, the improvement has been evenly spread among all seven cities,” said Ramesh Nair, CEO and Country Head, India, JLL. “The housing market is set to chart a new chapter of growth in 2021, fuelled by affordability, reinforced desire to own a house and renewed interest from certain buyer segments such as NRIs,” he added. Seven key cities saw recovery gains of more than 50% in 2020 with Hyderabad, Mumbai and Delhi NCR gaining maximum foothold as compared to 2019.
In Hyderabad, the Western Suburbs accounted for more than 70% of the overall sales In Mumbai, sales was driven by Thane and Navi Mumbai, with a combined contribution of over 50% In Delhi NCR, Noida and Ghaziabad accounted for nearly 80% of the sales. “As the sector shows signs of recovery, prominent developers are expected to be at an advantage and capture a greater share of the market. Given that the affordable and mid-segments (sub INR 1 crore) continue to witness maximum sales traction, select developers are also reviewing their projects to make them more aligned to buyers, both in terms of product and pirce. Additionally, buyers are unwilling to take any risks and are showing higher preference for completed projects, or projects where significant construction is underway.
The Central Bank is leading the way to recovery by holding policy rates at historically low levels to initiate a cycle of consumption-led growth. As income levels come back to normal, more buyers will come to the market to make the most of this time,” Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL. The translation of this demand into sales will primarily hinge on enhanced consumer confidence, which in turn depends on the continued implementation of progressive government policies amidst the gradual revival of the Indian economy at large.