2020 kick-started a trend reversal wherein larger homes - spacious enough to accommodate home offices and online study spaces for children - began to be in higher demand
As on 2019-end, 1,322 projects comprising ~5.76 lakh units (launched in 2013 or before) were stuck in various stages of (non) completion in top 7 cities; by 2020-end, this reduced to 1,132 projects comprising ~5.02 lakh units

ANAROCK Sells ~1,805 Homes in Sept.-Oct. Period, Up 78% Y-o-Y

  • Firm sold 1,016 homes in the corresponding period in 2019 across top 9 cities in India & Dubai
  • Despite COVID-19, organic buyer demand boosting sales amidst ongoing festive offers & discounts, govt. incentives (particularly stamp duty cut in Maharashtra) & prevailing low home loan rates
  • MMR tops list – ANAROCK sold 573 units in September & October 2020 against 265 units last year (approx. 116% yearly rise), followed by NCR with 333 units sold in these two months against 260 units last year
  • In Bengaluru, Firm sold 257 units in this period (76% y-o-y jump); 223 units sold in Chennai – a nearly five-fold yearly jump in Sept.-Oct. months this year
  • NRIs capitalize on prevailing low prices in Dubai – ANAROCK sold 17 units in these two months against 3 units in this period last year

Mumbai, 1 December 2020: Despite unusual pressures on the housing market, residential real estate is on a high this festive season. ANAROCK Property Consultants sold 1,805 homes across top 9 Indian cities (NCR, MMR, Chennai,

~ INR 500 Cr Worth Luxury Homes in South-Central Mumbai Sold in October

South-Central Mumbai localities witnessed luxury home sales worth INR 500 Cr last month (October). In 2019, the corresponding period saw luxury sales worth approx. INR 150 crore, thus improving by >230% in the year.
As per ANAROCK research, average property prices in the top 7 cities in the last decade (2010-Q1 2020) saw a close to 38% jump. The average price of a home in the top 7 cities rose from approximately INR 4,063 per sq. ft. in 2010 to INR 5,599 per sq. ft. by Q1 2020.

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

  • Just 63,000 ready units currently benefit out of total 6.73 lakh units across top 7 cities
  • Nearly 22,000 ready unsold units completed before 2017 don’t benefit from new rule
  • 33% of 5.88 lakh unsold under-construction units in the luxury segment – 49% in MMR – will not benefit immediately 

Just when the real estate industry was preparing to give the budget a complete thumbs down, the finance minister sprung a surprise ‘bonanza’ for the sector in the last 10 minutes of his speech. Or so it seemed.

Without a doubt, affordable housing gained amidst what was essentially a mass-appeal budget. However, it was the extension of tax relaxation on notional rent for unsold inventory for another year that cheered developers.

However, under closer scrutiny, it is unlikely to benefit a majority of them as on date.

Anti-climax for developers

Basically,

Anuj Puri, Chairman – ANAROCK Property Consultants

  • Benefits aside, a cut could have been a major setback to the affordable housing segment
  • GST rate cut, clarity on / abolition of ITC – boosted demand vs. actual sales

After much anticipation, the GST Council has failed to deliver a final verdict on GST applicable on real estate – but how much would it really have mattered?

Here’s a Utopian vision – the government would announce a GST rate cut, homebuyers would cheer up since prices would reduce marginally, and the market revives. Really?

The biggest paradox in Indian real estate is that numbers suggest a massive burden of unsold housing stock in the midst of a chronic shortage of housing. As long as prices don’t reduce significantly, the housing shortage will only widen regardless of tax sops.

What we have today is a nation of aspiring homebuyers, many of which are perpetually on the fence, waiting for a slew of minor policy windfalls to cumulatively make a home purchase feasible and attractive.