Although at the beginning of the year there were some green recovery shoots evident in the real estate market, the lockdown caused by the Covid-19 pandemic that set in March and continued to do so before the nation, developers and banks agreed to go full throttle with demand-enhancing initiatives. It appears like such steps paid off in the 3rd quarter.
Few States have agreed, by March 2021, to reduce the stamp duty rates on property transactions. Financial firms also taken home loan interest rates down to the amount of sub-7 percent. And constructors began doling out generous payment schemes and offers that helped raise profits.
If these are mere steroid shots or real indicators of regeneration, though, remains to be seen. Only after the findings of at least two quarters after the lifting of the lockout is a true image likely to appear.
It can be remembered that the lockdown did not preclude developers from communicating with consumers by the constructive use of interactive platforms, which they proceeded to do so. Growing digitisation has played a crucial role in facilitating purchases for online home purchases and transactions.
First-time homebuyers tended to favor ready-to – move inexpensive homes and those in early building phases. Because of the work-from – home change, those looking to upgrade chose bigger residences with designated work and research areas.
Housing units in the price band of sub-Rs 45 lakh, classified in India as affordable housing under income tax laws, rendered the largest contribution to revenues during the year, contributing 45% to overall sales estimates.
In the third quarter, revived demand from NRIs also supported residential market activity.
And for several third-quarter forecasts by real estate consultancies boasting of a rebound in the real estate market, the measures have paid off.
In the second quarter of the financial year 2021, the incremental unlocking of the economy, pent-up demand, and improved overall affordability on the basis of low interest rates, as well as attractive payment schemes and discounts, culminated in residential real estate recording 60 percent quarter-on – quarter rise, an ICRA analysis said.
Another PropTiger.com study also said that in Q3 2020, residential real estate sales grew by 85 percent in QoQ. Due to the extended lockout across the world, the rise can theoretically be attributed to pent-up demand.
Another report by Liases Foras said that in the second quarter of 2020, sales across Tier I cities recovered by 60 percent. In Kolkata, a maximum increase of 68 percent was observed, accompanied by Ahmedabad with 64 percent and MMR and Bengaluru with a 60 percent increase each.
On a year-on-year (YoY) basis, however, total revenues across tier I cities were 37 percent lower than they were last year during the same time. On a Yo-Y basis, revenue in NCR and Bengaluru saw a maximum decrease of 47 percent and 46 percent , respectively. The research, named Residential Real Estate Market Survey-Tier 1 cities Q2 2020-21, was followed by Ahmedabad (37 percent) and Kolkata (32 percent), says the report.