Pent-up demand for residential land manifesting itself

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The growing demand for residential real estate shows signs of gradual improvement in the sector and is slowly accumulating steam to meet the aspirations of home buyers. The figures for June are encouraging, based on inquiries generated at various locations across the country and rising property prices.

The property market began to suffer greatly over the past year and a half due to the Covid-19 pandemic outbreak and subsequent nationwide lockdown to test the spread of the coronavirus, thanks to the approach taken by the Central and state governments to combat the second wave of the epidemic in April-May.

With the second wave of pandemic abating, homebuyers came out and started looking for properties that suited their budgets and preferences. One does not have to look at statistics to know what is happening in the market, but a simple observation of property advertisements in newspapers indicates that something positive is going on in the real estate sector.

According to Prop Tiger’s quarterly report ‘Real Insight (Residential) Q2 2021’, half of the sales in the April-June quarter of 2021 took place in June itself, and states began to open and remove movement restrictions. This is because the second wave of the Pandemic peaked in April and May.

Despite all the improvements, the affordable housing sector continues to be a major hub for real estate developers in India. In fact, 35% of the projects started in the second quarter cost Rs 45-75 lakh, the report said. Contrary to previous trends dominated by Mumbai and Pune, new launches, Hyderabad topped the second supply segment in 2021, contributing 40 percent to the total pie.

During this period, 8,800 new units were started in Hyderabad. 3,400 units reached Bangalore. Southern cities (Hyderabad, Bengaluru, and Chennai) contributed 58 percent to the second launch in 2021. Mumbai and Pune together contributed 26 percent of the total distribution.

Priority is given to completed or completed projects because buyers are wary of the risks associated with delayed projects. On the positive side, in the second quarter, there was a slight decline in the share of ready-to-move-in (RTMI) homes in total sales.

Sales in the RTMI segment contributed 16 percent to total demand. During this period, Chennai and Delhi NCR recorded the highest number of residential sales in the RTMI segment. In Hyderabad, the share from this segment is 6 percent.

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