The chorus for homeownership has got louder. Homebuyers, especially millennials and young professionals are thronging online real estate portals to book ready-to-move-in and near-finished homes. Fortune has never smiled on homebuyers like now and they want to make the most of this opportune time.
With the spring season ending on a high for the real estate sector, developers are delighted as residential real estate sales have bounced back with numbers matching or even surpassing pre-Covid levels. Residential sales in the first quarter of 2021 stood at 25,583 units over 27,451 units in Q1,2020, recovery of over 90% of volumes across the top seven cities.
The easing of lockdown restrictions and the nationwide vaccination drive on a war footing has helped buyers get back to the property market. Not to mention the historically low home loan rates, stagnant residential prices, lucrative payment plans, freebies from developers, and the reduction of stamp duty for affordable housing, which have warmed the hearts of homebuyers, increased their confidence, and egg them on towards home buying, ditching their rental accommodations.
The GDP growth in the last quarter of 2020 by 0.4% has also accelerated the pace of recovery for the residential real estate sector with sales increasing by 51% as compared to the previous quarter, which has helped the real estate sector to maintain an upward trajectory in 2021.
The splendid performance in MMR and Pune in Q1, 2021 has rejuvenated the real estate sector. These two markets were the most active during the initial months of 2021 and saw record sales and property registrations buoyed by concession in stamp duty, reduced property prices and construction premium cuts. Homebuyers in MMR have responded proactively to this trend and surprised real estate developers with their sales figures.
In Q1 2020, Pune, MMR, Bengaluru and Delhi-NCR accounted for 83% of the sales. Hyderabad took the crown for most sales as numbers swelled by 64% from 2,680 units in Q1 2020 to 4,400 units in Q1 2021. Chennai saw an increase of 30%, selling about 2,850 units. Kolkata and NCR sold 2,680 and 8,790 units respectively, an increase of 10% and 8%. In Bengaluru, 8,670 units were sold as compared to 8,630 units in Q1 2020.
Without an inch of doubt, one can say that the pandemic has been a blessing in disguise for real estate developers as they are able to clear off pending ready-to-move inventory and also capture a greater share of the market. Top developers having an excellent track record have minted money in the first quarter of 2021 owing to their credibility, quality of work, and transparent business module.
