Maharashtra: Housing sales may see 20-35% rise this monsoon, says report

PUNE: A report by real estate consultants JLL has predicted that the ongoing monsoon may result in a 20-35% uptick in housing sales.
The report said a forecast of good rains has provided some room for monetary policymakers to keep rates unchanged.

The prediction is a departure from usual business trends in the construction and housing industry during the monsoon months, as uncertainties and disruptions in construction and supply chains depress housing sales. The report added that a good monsoon may also provide fuel to other economic indicators, such as sales of electronic items and other white goods.
In its observations, JLL said forecasts of a good monsoon, which is being realized in most parts of the country, has allowed Reserve Bank of India to keep rates low, with inflation also being largely in check. It added that banks maintaining historically low rates on home loans — mostly under 7% — will keep attracting more buyers to the housing market. However, the report also warned that a possible third wave of the ongoing pandemic in India may upset these projections.
“The residential real estate sector can expect buoyancy in the sales of residential properties in the monsoon and the upcoming festive season this year, just as last year where there was a 34% jump in the corresponding period compared to the immediately preceding quarter. The jump in sales can be 20-35% this year depending on how the pandemic pans out. If there is a third wave in the next few months, other economic disruptions could impact sales growth negatively, which may then hover around the lower range of our expectations,” said Samantak Das, head of research at JLL.
The report added that the upcoming festive season in parts of India will be a key driver in the housing market, especially in Maharashtra, which has the country’s two most active housing markets — the Mumbai and Pune metropolitan regions. During house-hunting, JLL added, buyers are also looking at considerations of drainage and waterlogging, due to cases of heavy rainfall and flooding in recent times.
Branded real estate at
9.25 crore sqft: Anarock
Real estate consultancy Anarock has estimated that Tier I, II, and III cities will see launches from reputed and branded real estate entities accounting of for 92.5 million (9.25 crore) sqft over the next two years. It added that up to 75% of the projected stock may be launched this fiscal.