India’s residential real estate segment has apparently bottomed out for the year 2020 although momentum remained strong in the period between October and December for the year. 2021 should witness the continuation of this sales momentum which may touch levels seen before the coronavirus outbreak or even cross these levels in the event that no other sudden event takes place. Experts opine that lower interest rates for home loans coupled with subdued home prices and enticing payment plans may draw more buyers in addition to cuts on stamp duty in several States. People are also emphasizing upon the importance of home ownership amidst the COVID-19 pandemic, which is another factor that may propel sales handsomely going forward.
Sales volumes shot up to 50,900 units in India’s top 7 cities in the period mentioned above, posting sizable growth as compared to 29,520 units sold in the quarter before this one. Sales figures plunged by roughly 47% to touch 1.38 lakh units in 2020 which is far lower than 2.61 lakh units in sales for 2019 as per reports. However, industry experts forecast steady and recovering demand in the sub-Rs. 45 lakh and Rs. 45 lakh and Rs. 1 crore segments. Kanika Gupta Shori, the COO and Co-Founder at Square Yards, stated that Indian real estate expects higher demand in 2021 with more people expected to perceive the sector as the best investment option in the current scenario.
Several developers have also stated that 2021 will belong to Indian real estate which has managed to bounce back after the lockdown and demand is definitely expected to be on the upswing. The RBI is expected to keep its accommodative stance in place while the Government should continue with stimulus packages for an economic boost as well. These are factors that will greatly enhance real estate sentiments according to them. Integrated townships are also expected to garner higher demand likewise.
Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.