The real estate market may have been badly hit due to lock downs and other COVID-related disruptions but not anymore. The country's residential real estate market bounced back as the economy scales back to normalcy.
According to PropTiger's data, sales of residential homes have jumped by a whopping 365 per cent year-on-year YoY during the April-June period. In April-June 2021, some 15,970 units were sold in top eight metro markets, this time the offtake has grown to 74,330 units.
Industry experts say the growth in top markets like Mumbai and Bangalore is more encouraging. In Mumbai, the largest residential real estate market in the country, sales of new homes have jumped by an astounding 673 per cent YoY to 26,150 units, up from 3,380 units last year.
Some 8,350 units were sold this quarter in Bangalore -- the third largest market after Delhi-NCR. This is 425 per cent higher than last year's 1,590 units. In Delhi-NCR, the extent of growth was comparatively lower -- 60 per cent from 2,830 last year to 4,520 units.
Even though the RBI raised the repo rate twice during the quarter to bring it to 4.90 per cent, home loans remained largely affordable for the period analysed. On the onset of demand recovery, realtors have started to launch new projects that were missing in the past few years. The market was impacted by the second COVID wave last year, but growth in April-June was noticeable compared to the previous quarter when the residential market was already booming.
New launches have increased 28 per cent from 79,530 units in the January-March 2022 quarter on a quarter-on-quarter basis. Ankita Sood, head of research at REA India, said developers returned to the market in full swing during the April-June quarter, which catapulted the new supply back to 2015 levels.
She said that the sustained demand momentum is expected to increase strength to strength as a result of the upcoming festive season, which will push the growth trajectory further in the ensuing quarter.