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Business Economy


Residential sales up 51 pc in Q4 vs Q3 2020; Seven key cities witness an uptick

Kolkata, Dec 23 (UNI) India’s residential sector is seeing an acceleration in sales leading to a fast paced recovery from the impact of the pandemic.
Residential sales accelerated by 51% in Q4 as compared to Q3 2020.
It is important to note that this improvement has been holistic with seven key residential markets showing an uptick in sales. Mumbai, the country’s largest contributor to sales for this quarter accounts for 23% of the overall sales, while the Delhi NCR market accounts for 20%. Pune saw the maximum increase in sales activity as compared to the third quarter at 147% with 3, 323 units sold in all.

“GDP in the July-Sep quarter of 2020 showed higher than expected recovery. During the same quarter, the housing market showed some initial signs of recovery as well, with sales increasing by 34% on a sequential basis. In the backdrop of issues like job security and fall in income levels, this uptick in sales was a significant achievement. The fourth quarter has witnessed a 51% improvement in residential sales, and not just that, the improvement has been evenly spread among all seven cities,” said Ramesh Nair, CEO and Country Head, India, JLL.
“The housing market is set to chart a new chapter of growth in 2021, fuelled by affordability, reinforced desire to own a house and renewed interest from certain buyer segments such as NRIs,” he added.


“As the sector shows signs of recovery, prominent developers are expected to be at an advantage and capture a greater share of the market. Given that the affordable and mid-segments (sub INR 1 crore) continue to witness maximum sales traction, select developers are also reviewing their projects to make them more aligned to buyers, both in terms of product and pirce. Additionally, buyers are unwilling to take any risks and are showing higher preference for completed projects, or projects where significant construction is underway. The Central Bank is leading the way to recovery by holding policy rates at historically low levels to initiate a cycle of consumption led growth. As income levels come back to normal, more buyers will come to the market to make the most of this time,” Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.

The translation of this demand into sales will primarily hinge on enhanced consumer confidence, which in turn depends on the continued implementation of progressive government policies amidst the gradual revival of the Indian economy at large

Q4 2020 witnessed 26,785 new residential unit launches, more than twice the new launches witnessed in Q3 2020. New launches in Q4 2020 increased in all markets under review, when compared to Q3 2020. Bengaluru and Delhi NCR saw a substantial increase in launches during the quarter. Hyderabad dominated new launches accounting for nearly 40% of the overall launches during the quarter and Bengaluru followed with over 16%. This being said, it is important to note that new launches are still restricted when compared to the pre-COVID levels. Developers across markets focused on completion of under construction projects and clearing existing inventory.
On an annual basis, overall launches across the top seven cities dipped by 31% to about 95,000 units in 2020 as compared to about 137,000 units in 2019. Development focus on mid and affordable segments continued in Q4 2020 with more than 80% of the new launches in the sub INR 10 million (INR 1 crore) category. Moving ahead, the focus on this price segment is expected to continue with developers trying to reap benefits of strong pent up demand in this segments. Most of the new launches in the southern markets of Bengaluru, Chennai and Hyderabad were in the sub INR 10 million category.
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