34 per cent growth in residential sales however decline in new launches

Mumbai, Ta. 29 September 2020, Tuesday

In the third quarter of the current calendar year, the September quarter, residential sales in the country grew by 4 per cent on a quarterly basis. However, the current stock depreciation period has increased from 2.50 years to 9 years, a report said.

Out of the total sales of residences in the September quarter, Mumbai accounted for 6 per cent of the total sales, while Delhi accounted for 4 per cent. Chennai, Pune and Hyderabad have also seen an increase in demand for housing.

The report notes that developers are very optimistic about the residential markets in Mumbai and Delhi in terms of sales volume. Sales growth has been driven by lower interest rates, lucrative offers and a 15 to 18 per cent correction in prices.

Given the current situation, the current property market is a buyer's market. The next one year is seeing the right time to buy a residence.

How long the recovery seen in the September quarter will continue depends on the incentives the government continues to provide. As such the Government of Maharashtra has given significant relief in stamp duty.

It remains to be seen how fast the country's economy will recover from the Corona epidemic. The housing market has also been supported by increasing demand from non-resident Indians. There has been an increase in sales as well as inquiries. Given this fact, it is not surprising that demand will remain high during the upcoming Dussehra-Diwali festivals.

The number of new start-ups has dropped to 16, down from 15 per cent in the June quarter. The new construction, which started in the September quarter, saw 80 per cent of the dwellings in Mumbai and Hyderabad. In comparison, Bangalore has seen a 30 per cent decline. In the newly started construction, 3% of the houses cost less than Rs 1 crore. This means that developers seem to be focusing more on moderate and affordable construction.