On a sequential basis, sales improved by 65% during Q3 2021. Sales got a boost from many factors including lower Covid-19 cases in Q3 backed by robust vaccination drive.
Residential sales over January and September 2021 have increased by 47%, compared to the same period last year across the top seven cities, according to JLL’s residential market update – Q3 2021, released on Monday. This implies that the second wave had a limited impact on sales in the first three quarters of 2021.
On a sequential basis, sales improved by 65% during Q3 2021. Sales got a boost from many factors including lower Covid-19 cases in Q3 backed by robust vaccination drive, which led to cautious unlocking of the economy in various states.
Sales of more than 32,300 residential units were recorded in Q3 2021, while sales volume in Q3 surpassed the sale volume recorded in the pre-Covid period of Q1 2020 by 18%. Hyderabad saw the highest new launches forming 28% of overall new launches during Q3 2021.
Most new launches in larger markets of Bengaluru, Mumbai and Delhi NCR were in affordable and mid segments, the report stated. Siva Krishnan, head (residential), India, JLL said, “Developers have already started launching optimally sized apartments to capture changing consumer preference across most of the cities. The Indian residential sector is expected to witness sustained growth in the coming quarters. The renewed buyer’s confidence has been instrumental in the recovery of the housing market in Q3 2021, which recorded a good volume of sales and launches as compared to the same period last year and almost inching towards the pre-covid era. Sales of more than 32,300 residential units were recorded in Q3 2021 against 19,635 units in Q2 2021, a significant increase of 65% quarter-on-quarter”.
At the same time, it is encouraging to note that the sales volume during the quarter is inching closer to the average quarterly volume of sales recorded in the pre-covid era of 2019, which stood at about 35,000 units. This certainly indicates that the market sentiments are improving compared to the previous year and bringing back buyer’s confidence in the market. Further reduction in home loan rates coupled with the festive season and improved market sentiments augurs well for the residential sector.
The top seven cities under consideration witnessed new launches of 32,863 units in Q3 2021, an increase of 21% quarter-on-quarter. As the economy began to improve and with the festive season around the corner, developers continued to launch residential projects across the country. Most of the new launches in the markets of Bengaluru, Mumbai and Pune were in affordable and mid segments. Pune and Mumbai, which contributed 23% and 19% respectively to the overall new launches followed.
The markets of Kolkata, Delhi NCR and Pune witnessed a substantial increase in launch activities during Q3 2021, when compared to the same period last year as well as from the previous quarter. Development focus on mid and affordable segments continued in Q3 2021 with 77% of the new launches in the sub-Rs 1 crore category.