The mid-segment (homes priced INR 40-80 lakh) and premium homes (priced b/w INR 80 lakh to INR 1.5 Cr) continue to dominate new supply with 41% and 25% shares, respectively. The affordable housing segment (units priced INR 40 lakh) saw its supply share reduce to 24% in the quarter.
Average property prices saw a 3% yearly increase across the top 7 cities - to INR 5,760 per sq. ft. in Q3 2021 from INR 5,600 per sq. ft. in Q3 2020. Bengaluru leads with an approx. 4% annual rise – from INR 4,975 per sq. ft. in Q3 2020 to approx. INR 5,150 per sq. ft. in Q3 2021.
Anuj Puri, Chairman - ANAROCK Group, said, "IT/ITeS continues to drive the bulk of housing demand in the top 7 cities. In Q3 2021, significantly improved job security and robust hiring in the IT/ITeS and financial sectors piggybacked on record-low home loan rates and growing homeownership sentiment. The ongoing WFH culture continues to influence residential sentiment on two major fronts - overall housing demand and unit sizes. The fast-paced vaccination drive is an added sentiment booster, especially in terms of increased site visits."
He added, "With new launches increasing by 98% and housing sales skyrocketing by 113%, Q3 2021 stands in stark contrast to this period last year. MMR and NCR together accounted for nearly 50% of the overall housing sales in the quarter."
In previous periods of unprecedented demand, housing prices invariably rose steeply. In the current pandemic period, they have remained more or less stable, and developers were actively sweetening the deal with added offers and discounts in this period, effectively keeping a lid on the overall cost of property acquisition. MMR distinguished itself with an impressive 8% y-o-y reduction in its unsold stock. Unsold inventory in the region stood at 1.92 lakh units as of Q3 2021 end. NCR saw a 3% yearly decline.