Residential revival on track, better times ahead for housing market

With the first half of this calendar year seeing consistent residential recovery, the housing market holds promise in the festive months ahead. 

According to the latest industry statistics, residential recovery continued in H1 2021, with over 75 percent year on year growth. NCR has recorded 17 percent share in the overall yoy growth while Mumbai had 18 percent share in the overall sales recorded in the first six months of this calendar year. However, Pune residential market accounted for the lion share of 26 percent in the overall pie. What is significant is that the residential segment has been showing clear signs of recovery for the last 3-4 quarters. Housing sales grew by 73 percent on quarter on quarter basis in Q4, 2020, across top seven cities in the country. Over all, the real estate sector is still grappling with serious issues of inadequate and costly funding, shortage of construction workers and increased labour cost, rising prices of construction materials, leading to higher construction cost, lack of financial discipline and prevailing uncertainty around Covid pandemic. Seen in this backdrop, the ongoing residential recovery is promising.

Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, Assocham National Council on Real Estate, Housing and Urban Development, “Government’s consistent policies to boost affordable and mid-segment housing have given a push to the recovery during these tough times. Especially with affordability at a decade high, the upcoming festive season will further sharpen this recovery process with a substantial boost to home sales. Going forward, embracing new technology, maintaining financial discipline, good governance and skill upgradation of construction workers along with measures for their welfare,  will be key to speedy recovery and sustainable growth of the residential real estate.

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