In Q3 2021, housing sales surged 113% y-o-y across the top 7 cities -- from approximately 29,520 units in Q3 2020 to nearly 62,800 units in Q3 2021, Anarock has said in its latest report. Of this, MMR or Mumbai metropolitan region accounts for 33% of the total sales, followed by NCR with a 16% share.
As per the report, increased sales also improved new launches as it rose in the top 7 cities by 98% yearly - from approximately 32,530 units in Q3 2020 to approximately 64,560 units in Q3 2021. While MMR continued to see the highest number of new launches (of approximately 16,510 units) in the quarter, Hyderabad was close behind with a new supply infusion of approximately 14,690 units.
Interestingly, the mid-segment (homes priced Rs 40-80 lakh) and premium homes (priced b/w Rs 80 lakh to Rs 1.5 Cr) continue to dominate new supply with 41% and 25% shares, respectively. The affordable housing segment (units priced (Rs 40 lakh) saw its supply share reduce to 24% in the quarter, the report said.
Average property prices saw a 3% yearly increase across the top 7 cities - to Rs 5,760 per sq. ft. in Q3 2021 from Rs 5,600 per sq. ft. in Q3 2020. Bengaluru leads with an approximately 4% annual rise - from Rs 4,975 per sq. ft. in Q3 2020 to approximately Rs 5,150 per sq. ft. in Q3 2021.
"IT/ITeS continues to drive the bulk of housing demand in the top 7 cities," said Anuj Puri, Chairman of ANAROCK Group. "In Q3 2021, significantly improved job security and robust hiring in the IT/ITeS and financial sectors piggybacked on record-low home loan rates and growing homeownership sentiment. The ongoing WFH culture continues to influence residential sentiment on two major fronts - overall housing demand and unit sizes. The fast-paced vaccination drive is an added sentiment booster, especially in terms of increased site visits."
In previous periods of unprecedented demand, housing prices invariably rose steeply. In the current pandemic period, they have remained more or less stable, and developers were actively sweetening the deal with added offers and discounts in this period, effectively keeping a lid on the overall cost of property acquisition.