Residential sales in Jan-Mar touch 90% of pre-covid levels

Cities including Chennai, Hyderabad, Kolkata, and Pune surpassed sales volumes of Q1 2020. Total sales rose 17% sequentially. (File Photo: AFP)

2 min read . Updated: 25 Mar 2021, 02:49 PM IST Staff Writer

Kolkata saw the maximum increase in sales activity in Q1 2021 compared with October-December 2020. Offtake of residential units in Q1 2021 was driven by suburbs in south and east

NEW DELHI: Residential sales across the country's top seven cities in the first quarter of calendar year 2021 witnessed more than 90% of the volumes clocked in before the pandemic in Q1 2020, according to a report by the property consultants JLL India.

According to the report ‘Q1 Residential Market Update’, cities including Chennai, Hyderabad, Kolkata, and Pune surpassed sales volumes of Q1 2020. Total sales rose 17% sequentially.

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Importantly, sales either improved or stayed at similar levels in Q1 2021 when compared with Q4 2020 in majority of the residential markets under review.

Mumbai has consistently been the largest contributor to sales over the last four quarters. In Q1 2021, Mumbai accounted for 23% of total sales, followed by Delhi NCR, with a share of 21%.

Kolkata, however, saw the maximum increase in sales activity in Q1 2021 compared with October-December 2020. Offtake of residential units in Q1 2021 was driven by southern suburbs (Joka, Kasba, Behala, Jadavpur, Tollygunje) and eastern suburbs (EM Bypass, Rajarhat, Topsia) with a combined contribution of more than 70%.

"The sustained growth in sales presents clear signs of demand and buyer confidence coming back to the market. This has been on the back of historically low home loan interest rates, stagnant residential prices, lucrative payment plans and freebies from developers and government incentives such as the reduction of stamp duty in states like Maharashtra and Karnataka (for affordable housing)," said Samantak Das, chief economist and head research and REIS, JLL.

"In the fourth quarter of calendar year 2020, India’s economy returned to growth territory, recording a 0.4% rise in GDP. In tandem with the GDP growth, the pace of recovery in the residential market intensified with sales increasing by 51% when compared to the previous quarter".