A host of positives for the real estate sector has ensured solid traction in select cities, with the real estate sector likely to end the year 2020, with a bang.
According to Krish Raveshia, CEO at Azlo Realty, lower stamp duty, interest rates, easy liquidity coupled with attractive offers, stamp duty waivers by developers and pent demand has led to a stellar last few months. As expected, November sales data helped by festive season buying is the highest in nearly a decade, in terms of the number of units sold.
"The change in home buying preference due to the pandemic with buyers preferring to reside in a bigger home to adapt to the Work from home culture also boosted demand. The interest rate and liquidity are likely to be favourable in the short to medium term for business and investments as per the indication by the RBI. The stage is set for high growth for the Indian real estate sector with unlocking, and pick-up in economic activities. We expect high traction in sales to continue in 2021 with all factors in favour of growth," Raveshia says.
It's likely that the we may see sales across the country, especially tier II gaining ground in the next few months.
Knight Frank India, leading international property consultancy estimates that home sales volume in Mumbai recorded at 9,301 units in November 2020 registering a whopping 67% year-on-year (YoY) rise over same month last year boosted by stamp duty cut and festive period of Diwali. This strong growth of 17% month-on-month (MoM) in November 2020 comes after a robust 42% MoM growth during October 2020 and massive 112% MoM growth during September 2020, when sales of residential property started to show an upward trend after months of COVID-19 induced slowdown.
Mumbai has witnessed a cumulative residential sale of 22,827 units after the stamp duty cut during September-November 2020. The monthly run rate in this period after the stamp duty cut is approximately 135% or 1.35 times the monthly average of 2019.
"There is a tremendous demand for affordable housing and rental projects in India. Industry estimates suggest that in Indian cities, the total housing shortage is roughly to the tune to 500 million and the gap will widen if not plugged properly. This also suggests that there is a huge potential in the affordable segment. However, to properly capitalize the same, there is a need for more coordinated steps between the governing agencies and the developers," says Sahil Kapoor, 360 Edge
Clearly, the real estate sector is on a revival path and with lending rates at new lows, signs of a robust turnaround in the real estate sector are visible.