NEW DELHI: Sale of housing units is yet to breach the pre-covid level in top seven cities except Mumbai, which is experiencing better sales due to stamp duty cut, according to a analysis by real estate data andanalytics platform PropEquity.
According to the report, sales of home units in top 7 cities in India increased by 20% in October 2020 to 27,061 units versus 22,469 units in September 2020 but is less than 29,347 units sold in October 2019.
In month-on-month comparison, the National Capital Region (NCR) was the only territory where the sales decreased by 3% while other cities including Bengaluru, Chennai, Hyderabad, Kolkata, MMR and Pune saw sales going up by 16%, 3%, 24%, 15%, 35% & 13% respectively.
“We expect this trend to continue to grow in December and also 2021 onwards as the market is upbeat with the announcement of COVID vaccines hitting Indian markets by January. Central and state government may also come out with favorable policies in the union budget next year to provide support to the sector,” said Samir Jasuja, MD & Founder – PropEquity.
In Bengaluru, 3,188 units were sold in October 2020 against, 3,917 in the same month last year, and 2,747 units in September 2020.
In Mumbai, 11,236 units were sold in October 2020 against 9,616 units in October 2020 and 8,312 units in September 2020.
The data further shows that new launches rose by 28% during the same period to 18,573 units from 14,567 units as developers launched several projects post the lockdown was lifted. However, it is still much less than 29,666 units launched in October 2019.
This trend indicates that the real estate sector in India is looking at a revival after several months of lockdown announced by the Govt. to stop the spread COVID 19. The festive season which began in October also did better than the expectations which helped in the revival of the sector.
In NCR, nee launches witnessed an increase of 8% to 2,300 units from 2,136 units and the absorption decreased by 3% to 2,546 units from 2,631 units. In October 2019, 3,145 units were sold.
“The market in NCR, especially for premium housing, is witnessing stable demand and going ahead we should see several transactions finalizing as the market sentiment is on the upswing. Next year, we predict markets to reach pre COVID levels in terms of demand for all segments of housing including affordable, mid income and luxury,” said Ankush Kaul, President (Sales & Marketing), Ambience Group.
PropEquity platform covers over 1,18,010 projects of 34,217 developers across over 44 cities in India.