English News

  • youtube
  • facebook
  • twitter

Despite second Covid wave, sale of residential homes went up compared to last year

Residential homes in demand

Even as the residential real estate sector experienced a slowdown during the April to June period of this year compared to the first three months, demand has been significantly higher compared to the corresponding period in the previous year when the first Covid 19 wave had hit the country.

For residential real estate, the first Covid 19 wave in 2020 had a significantly deeper impact than the second wave this year, Anarock’s study reveals.

Also read: Economic shocks from 2nd Covid wave will be less severe

Data by the property consultant revealed that housing sales in the second quarter 2021 stood at about 24,570 units across the top seven cities — an increase of 93 per cent annually but dropping by 58 per cent quarter on quarter.

As many as 12,740 units were sold in the corresponding quarter of 2020, and 58,290 units in the preceding quarter – first quarter of 2021. Mumbai Metropolitan Region (MMR) and Pune drove a massive share of housing sales between April and June 2021 with a 46 per cent share of the total sales, a statement by Anarock said.

Also read: Is the World Bank's 8.3 per cent Indian growth projection too conservative?

Meanwhile, despite localized lockdowns and restrictions due to the second wave, developers launched new projects (mostly digitally) bringing in about 36,260 units on the market across the top seven cities. Interestingly, Hyderabad is the frontrunner in overall housing launches with approximately 8,850 units launched in the second quarter 2021 – followed by MMR with 6,880 and Bengaluru with 6,690 units.

“The second Covid -19 wave definitely impacted overall residential property market activity in the second quarter this year when juxtaposed against the preceding quarter. However, compared to the corresponding period of 2020, the sector displayed remarkable resilience,” Anuj Puri, Chairman, Anarock Property Consultants said in a statement.

Interestingly, the premium budget category priced between Rs 80 lakh and Rs 1.5 crore saw maximum new launches in the quarter with a 36 per cent share.