Despite the devastating second wave of COVID-19, the residential real estate sector in India has staged a comeback in 2021. Data by property consultants Anarock showed that housing sales rose 71% year-on-year in 2021 with approximately 2.37 lakh units sold, thus reaching 90% of pre-COVID 2019 levels. Hyderabad recorded a 197% increase in sales from 8,560 units in 2020 to 25,410 in 2021 and also registered a rise of 144% in new launches, adding around 51,470 units in 2021 over 2020.
Bengaluru saw sales increase by 33% â€” from 24,910 units in 2020 to 33,080 units in 2021, while Chennai saw an 86% increase in sales â€” from 6,740 units in 2020 to 12,530 units in 2021.
The data further revealed that new launches rose by 85% annually in 2021 over 2020. Bengaluru added around 30,650 units in 2021, an increase of 43% over 2020. About 72% of the new supply was added in the mid and premium segments. Chennai added around 12,370 units in 2021, an increase of 35% over 2020. About 62% of the new supply was added in sub-Rs 80 lakh budget segments.
MMR recorded the highest sales at 76,400 units, followed by NCR with approx. 40,050 units sold. Of approx. 2.37 lakh units launched in 2021, the mid-segment (Rs 40 lakh to Rs 80 lakh) had the maximum share with 39%, followed by the affordable segment (priced under Rs 40 lakh) with a 26% share. The premium segment (priced between Rs 80 lakh to Rs 1.5 crore) had a 25% share.
Increased launches and overall absorption in the top seven cities in 2021, when compared to 2020, resulted in minor changes in available inventory. However, compared to 2019, there has been a 2% reduction in available inventory by the end of 2021, the data showed. Average residential property prices across the top cities increased by 3-5% in 2021 compared to 2020.
â€śDespite the pandemic, 2021 was a fantastic year for the Indian housing sector. More or less an equal number of homes were launched and sold. The fact that launches were back to pre-COVID levels is very significant, and housing sales fell short of 2019 by a mere 10%. Of the four quarters, Q4 2021 was by far the best, with housing sales in the top 7 cities attaining a new high of approx. 90,860 units in Q4 2021. This was the highest quarterly sales performance since 2015,â€ť said Anuj Puri, Chairman of the Anarock Group. â€śExtrapolating on the performance in 2021, 2022 will see very satisfactory growth as long as the coronavirus pandemic remains in check in India," he added.