HOME BUYING sees Uptrends

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Housing Sector Uptrends in Top Indian Markets after Months of Slack

The festive season is back in India and is bringing about some good news to the real estate companies.

After suffering from a pandemic-induced slack for the significant part of 2020, the Indian residential property market is finally showing some signs of rejuvenation in the quarter ending September to bring back smiles on the faces of those involved in the real estate business.

Low home loan rates, discounts, and other incentives offered by developers are propelling people to consider investing in buying homes.

Shishir Baijal, chairman and MD of Knight Frank India, while speaking to the New Indian Express exclaimed, “Developers have been focusing on liquidating inventory and homebuyers are inclined to purchase ready assets, which has translated into reduced unsold inventory levels in this quarter.”

Which markets experienced the most growth?

The top seven markets of the country – Hyderabad, Chennai, Kolkata, Mumbai, Delhi-NCR, Pune, and Bengaluru collectively accounted for housing sales worth ₹ 29,731 crores for the quarter ending September 2020, as opposed to a paltry ₹ 12,694 crores in the previous quarter. The stats were published in a report by Anarock Property Consultants.

“As was to be expected, the second quarter was lacklustre given the lockdowns and overall pressures on the economy. What is remarkable is how the third quarter stacked up; clearly indicating that buyer sentiment was in place and merely held at bay by uncertainty. Based on these results, there is now every reason to look at the coming festive season with confidence – homebuyers are back on the market,” said Anuj Puri, chairman, Anarock Property Consultants.

A JLL India survey mentions that Mumbai accounted for 29 percent of these sales (quantity-wise) followed by Delhi-NCR at 22 percent. Hyderabad also recorded sale of 1,609 units in September 2020 with a 4 percent YoY increase in pricing.

What are the reasons behind the bounce back?

The pandemic forced countries and people in a state of lockdown, but also helped people realize the importance of owning a home. With developers pushing multiple offers and the government declaring lower-than-ever housing loan rates, all of it came together to propel the numbers.

Another reason is market uncertainty. With the stock market being highly volatile and people uncertain of when it will bounce back, they are looking to invest the funds somewhere, and real estate is amongst the safest options available in such situations.

The pandemic has forced NRIs to get back to the round table and decide where they stand. Uncertainty hovering over their head has forced them to look for ways to secure their future, and the results are living proof of that. The growth in Indian real estate has been more due to NRIs looking to buy properties to ensure that they will have a dwelling if they have to come back to their country any day.

The upcoming months seems promising

The market research team at Estate.One says, “In Bengaluru, like all major cities, we are seeing an increasing demand for well-designed sustainable communities with the promise of water sustainability, better air quality, people-friendly designs, and the trend seems to be getting stronger. People are realising what is important as amenities and are moving beyond the basic features.”

With the festive season just around the corner, we further expect a boom in the real estate sector. Also, multiple offers from banks and developers can further boost the sentiments and help the market to revive in the upcoming months and post respectable numbers.

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