Home sales rose 71% year-on-year, with 237,000 units sold in 2021, thus reaching 90% of pre-Covid 2019 levels. Mumbai Metropolitan Region (MMR) recorded the highest sales at 76,400 units, followed by the National Capital Region (NCR) with 40,050 units sold, data from Anarock Property Consultants showed.
Property developers believe 2022 will script growth, new trends and dynamics in the real estate sector.
“The pandemic has accelerated some existing trends that favour greater suburban growth and vitality, digitisation in home buying, and rising demand for the hub-and-spoke model in commercial realty,” said Niranjan Hiranandani, managing director, Hiranandani Group.
He said the accelerated vaccination drive, softening home loan interest rates, a buoyant capital market, liquidity infusion, record FDI (foreign direct investment) and market consolidation were the highlights of 2021, terming it a “year of resiliency.”
Across the top seven cities, over 237,000 units were launched in the calendar year, touching the pre-Covid levels of 2019. Project launches rose 85% in the year. “Despite the pandemic, 2021 was a fantastic year for the Indian housing sector. An equal number of homes were launched and sold,” said Anuj Puri, chairman, Anarock Group.
The mid-segment, priced between ₹40 lakh and ₹80 lakh, had the maximum share of total launches, at 39%, followed by the sub-₹40 lakh affordable segment, with a 26% share. The premium segment – ₹80 lakh to ₹1.5 crore – had a 25% share in the year’s launches.
Highest Quarterly Sales Since 2015
“The fact that launches were back to pre-Covid levels is very significant, and housing sales fell short of 2019 by a mere 10%,” said Puri. “The last quarter was the best, with housing sales in the top 7 cities attaining a new high of 90,860 units. This was the highest quarterly sales performance since 2015.”
A significant rise in homeownership aspirations was supported by developer discounts and offers, government incentives such as Maharashtra’s stamp duty cut, and lenders maintaining decadal-low interest rates.
Average residential property prices across the top seven cities increased by 3-5% year-on-year in 2021. Bengaluru and MMR saw the highest price increase of 5%, while Chennai and Kolkata witnessed a 3% increase.
More launches and overall absorption in the top seven cities than in 2020, resulted in minor changes in available inventory. However, compared to 2019, there has been a 2% reduction in available inventory at the end of 2021.
Data indicates that the top seven cities together have total unsold stock of around 6.38 lakh units as of 2021-end. MMR and NCR saw a yearly decline of 10% and 5%, respectively.