According to a recent report by JLL India (a real estate services company), sales of residential apartments in Jan-March 2021 were up by more than 90% in the Q1 2020 across the top seven cities. Cities such as Chennai, Hyderabad, Kolkata and Pune, among others, outdid Q1 2020 sales.
The tax holidays that were extended helped affordable housing projects to take off. For the first time in the last decade, housing loans, which went below 7%, also resulted in sales in all segments of the real estate sector. The growth in the market is set to continue as low mortgage rates and stable prices lure savers and serious end-users.
New Residential Launches
New launches of 33,953 residential units took place in the first quarter of 2021, thereby recording a 27% jump over the last quarter of 2020. Hyderabad continued to dominate new launch activities and represented over a quarter of the overall launches. More than 16% of new launches were followed by Bangalore.
The majority of the new launches were in Bangalore, Hyderabad, and Pune with 77%, 76% and 100%.
As developers place more emphasis on the recovery of the lost volumes and gaining a stronghold in each market in the midst of the pandemic, prices are expected to remain broadly range-bound across most short-term markets.