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Indian Real-estate Sector Recovering Faster, 'Housing Sales Increased 71% In 2021'

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The Indian real estate sector only started to recover in the second half of the current fiscal, after an enormous fall in 2020. the union government's urbanization projects including the housing projects were impacted, while retail sellers too faced massive losses during the pandemic. In 2021, the delta variant Covid emerged and again hampered the recovery procedure, but the markets outperformed. According to, ANAROCK research, housing sales have increased by 71% in 2021, it is anticipated to reach 90% of Pre-Covid Levels. Additionally, real estate launches also increased by 85% against 2020 in the top 7 cities, in India.

 
Indian Real-estate Sector Recovering Faster, Housing Sales Increased 71% In 2021

In 2021 approximately 2.37 lakh units of housings were sold, while the Mumbai Metropolitan Region (MMR) recorded the highest sales at 76,400 units. The mid-segment (Rs. 40 lakh - Rs. 80 lakh) had the maximum share with 39%, followed by the affordable segment (Rs. 40 lakh) with a 26% share, while the premium segment (Rs. 80 lakh - Rs. 1.5 Crore) had a 25% share. New launches in Hyderabad recorded a 144% yearly increase. The National Capital Region (NCR) and Mumbai Metropolitan Region have seen the maximum drop in unsold inventory with 10% and 5% respectively compared with the previous year's data.

In total, the housing sales in the top 7 cities reached around 90,860 units in Q4 2021 - a 79% increase over Q4 2020, according to the same ANAROCK research. In the same quarter, around 73,750 units were launched, compared to around 52,820 units in the last year. This quarter performed the best in the current fiscal in terms of the real estate market in the country.

Anuj Puri, Chairman of ANAROCK Group, stated, "Despite the pandemic, 2021 was a fantastic year for the Indian housing sector. More or less an equal number of homes were launched and sold. The fact that launches were back to pre-Covid levels is very significant, and housing sales fell short of 2019 by a mere 10%. Of the 4 quarters, Q4 2021 was by far the best, with housing sales in the top 7 cities attaining a new high of approximately 90,860 units in Q4 2021. This was the highest quarterly sales performance since 2015."

 

Notwithstanding the devastating 2nd wave of the pandemic, Indian residential real estate staged a convincing comeback in 2021. A rise in home-ownership aspirations was aptly supported by developer discounts and offers, government incentives like Maharashtra's stamp duty cut, and lenders maintaining a decade low-interest rates - the research firm revealed.

"Extrapolating on the performance in 2021, 2022 will see very satisfactory growth as long as the coronavirus pandemic remains in check in India. However, input cost pressure and supply chain issues may induce a 5-8% increase in property prices. End-users will remain the dominant market force, and peripheral areas of the larger cities will continue to see both supply and demand traction," Puri said.

(Also read: Home Loan Interest Rates Cut By Banks: Check New Rates)

Read more about: gold rates inflation
Story first published: Monday, January 3, 2022, 16:25 [IST]
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