Residential Market Update: Q3 2021

The growing need for homeownership supported by all-time low mortgage rates, stamp duty waivers in various states and stagnant prices is driving the recovery in housing demand. Green shoots are visible across the top seven cities – Mumbai, Delhi NCR, Bengaluru, Chennai, Pune, Hyderabad and Kolkata.

In Q3 2021, sales witnessed an upward trajectory, increasing by 65% on a sequential basis, with 32,358 apartment units sold during the quarter against 19,635 units in Q2 2021. Sales were up 124% compared to the same period last year.

As the economic growth recovered in sync with the gradual return to normalcy, developers were actively launching new residential projects with an eye on the festive season. The top seven cities under consideration witnessed a sequential growth of 21% in new launches, with 32,863 units during Q3 2021. They were up 160% compared to Q3 2020. Most new launches were in the affordable and mid segments.

Prices remained largely stagnant compared to the previous quarter across the seven markets under review. With the festive season around the corner, developers continue to offer various discounts such as straight-up reduction in prices, deferred payment plans and other incentives to attract fence-sitters and prospective homebuyers.

Renewed buyer confidence has been instrumental in supporting the housing market recovery in Q3 2021, which recorded a healthy quantum of sales and launches compared to the same period last year. These numbers are inching towards those witnessed during the pre-COVID era. With the residential prices holding steady along with various incentives developers are offering, the residential market is likely to build on these gains.