The continuous recovery in residential realty through rise in home sales, is a promising sign for the growth of real estate.
After the massive slump in housing sales in June quarter of 2020, the housing sales staged recovery during the September quarter. This continuity in sales pick up was maintained during the festive quarter of December. According to a recent report by Liases Foras research consultancy, residential property markets across 8 cities saw 25% sequential growth in sales . As per the statistics in the report, as many as 52727 housing units were sold across 8 top cities during Q3 FY21. The report reveals that there has been residential recovery in all cities with highest growth in MMR, Pune and Ahmedabad. Housing sales rose 46% in MMR, 31% in Hyderabad, 26% in Pune, 25% in Ahmedabad. The rising sales helped reduce the unsold stock by 6% in terms of number of housing units. Also, there was 7% increase in terms of value of housing units sold during the last year.
Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global Group and Chairman, Assocham National Council on Real Estate, Housing & Urban Development, ” The continuous improvement in home sales is an indicator that it was simply not the outcome of latent demand but actual buying by the end-users. Considering that most of these sales are driven by affordable housing, the continuity/extension of various benefits under affordable housing will bolster affordable housing . These include continuous low home loan rates, Rs 1.5 lakh principal deduction , interest subsidy under PMAY and income tax benefit to affordable housing developers. These favourable factors will ensure good growth of residential real estate in the coming times”.