Home sales jump 44% YoY in Q1 2021, says report

NEW DELHI: Realty players sold 71,963 housing units in January-March this year, up a robust 44% year-on-year, as per the quarterly report released by Knight Frank India. Sales numbers have been improving steadily since the second quarter of 2020. Sales in the last two quarters--Q42020 and Q12021--were better than average quarterly sales in 2019, as per the report.

Encouraged by the good response, developers launched 76,006 units during the period, up 38% on year.

Among the top eight markets, Mumbai and Pune clocked the highest sales as well as launches. Sales in the region were aided by stamp duty cut announced by the Maharashtra government. The state government had announced a temporary 2-3% stamp duty cut in August last year which expired on 31 March 2021. On Women’s Day, the government announced a 1% stamp duty cut on registration of homes by women, effective 1 April, 2021.

Karnataka had also announced a stamp duty cut March 2021, which will likely boost sales in the state going ahead.

Developers also offered freebies and discounts, boosting affordability.

“The increasing sales volumes have also arrested the intensity of the YoY fall in residential prices of most markets while Hyderabad and the NCR have seen a marginal growth in prices compared to a year ago,” the report said.

Sequentially, property prices have remained stable in most cities and recorded an increase in the case of Chennai and Hyderabad, as per the report.

Shishir Baijal, chairman and managing director, Knight Frank India, “While the sentiments have remained largely positive in the first quarter leading to consistent rise in home sales, the recent spike in COVID-19 cases in the country has to be factored in for the future. We are yet to understand the complete impact of the ‘second wave’ on the economic activities and resulting wealth creation. The state with the largest demand, i.e. Maharashtra has introduced a lockdown for the month of April, which, apart from the fact that stamp duty has been reverted to its previous levels, will also lead to severe restrictions of public life....”