Real estate sees early signs of recovery1 min read . Updated: 30 Oct 2020, 06:31 AM IST
- Sales witnessed the maximum increase in Kolkata (68%) followed by Ahmedabad (64%) and the Mumbai Metropolitan Region and Bangalore (60% each)
- New launches grew by 68% in Q2 at 18,591 units compared to Q1, but are still 70% lower than the year-ago period.
Home prices are set to rise across cities, real estate developers at a Mint webinar said, as buyers return after the pandemic-led disruption.
Panellists at Mint’s Pivot or Perish webinar on the real estate sector on Thursday said sales of ready-to-move-in-home units in top cities have shot up since August and the trend is likely to continue for the next 18-24 months.
“Demand has grown ahead of supply, and home prices are going to rise," said Abhishek Lodha, managing director and chief executive officer, Lodha Group. “There has been a lot of monetary easing by banks in the last few months to support the economy, and as a result, assets like homes will rise in value. More importantly, because supply will be more constrained for a while in the ready-to-move-in homes segment, we will see prices rise significantly by about 5-15% in the coming 24-month period."
A report by Liases Foras, a real estate rating and research agency, this week said that tier-I cities clocked sales of 42,297 units in the July-September quarter, up 60% from the April-June quarter when 26,403 units were sold.
Sales witnessed the maximum increase in Kolkata (68%) followed by Ahmedabad (64%) and the Mumbai Metropolitan Region and Bangalore (60% each).
New launches grew by 68% in Q2 at 18,591 units compared to Q1, but are still 70% lower than the year-ago period.
“Lower interest rates are helping the upsurge of sentiment in home buying across the globe," said Lodha, who expects to clock about ₹1,000 crore in sales in October.
“The pandemic made those who live in urban slums migrate back to villages," said Rajeev Talwar, chief executive of DLF Ltd. “We’ve realised that housing demand is a pyramid with the maximum scope for affordable housing."
Vivek Singhal, CEO, M3M group, said that between August and October, the company clocked sales of ₹2,000 crore, which is 40% of its annual sales.
“Seven years ago, people wanted to buy aspirational homes; now they’re looking for utility. We’re seeing the most growth in the segments that are ₹2 crore and below, and above ₹5 crore."