Residential sales up 67 per cent in H1 this year
Top markets in the country recorded total sales of 99,416 residential units in the first half of 2021 (H1 2021) and the new launches in the same period were at 103,238 units, according to Knight Frank India residential report for January-June 2021.
H1 2021 saw a rise of 67 per cent YoY in sales volume with the first half of this period recording the larger part of the total volumes.
The share of sales of homes costing less than ₹50 lakh got reduced by around 500 basis points (bps) and constituted 42 per cent of all sales in the January-June 2021 period. Homes costing over ₹1 crore constituted about 19 per cent of all sales, while units ranging at ₹50 lakh – ₹1 crore improved by approximately 400 bps to be at 39 per cent. The reducing proportion of affordable homes (less than ₹50 lakh) is directly related to the challenges thrown up by the pandemic which impacted the economic confidence of home buyers in that category due to job loss threat, reduced income, inching CPI and other challenges.
A majority of the new launches were recorded in the first quarter of the year, while the impact of the second wave in Q2 2021 was felt in equal proportion by developers which impacted launches as well.
Q2 2021 accounted for a little more than one-quarter of all launches in the first half of 2021.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said “The gradual resumption of economic activity and increasing availability of the vaccine had sparked market traction in the second half of 2020 and this momentum carried over into Q1 2021. The second wave of Covid-19 infections has impeded this momentum but should be seen as more of a speed bump.”
“The limited period stamp duty cut which spiked home sales in Mumbai and Pune adequately demonstrates the need for policy level intervention to revive the residential market.”