Real estate developers in India’s top eight real estate markets sold more than 64,000 homes between July and September, recording a whopping 92% annual growth in residential sales, data from Knight Frank India revealed.
The total sales of 64,010 units in July-September is also 4% higher than the average quarterly sales of 2019 – another indication that the residential market may be heading for a recovery before COVID.
While the weighted average house price remained unchanged on a pan-India QoQ basis, house prices in Chennai, Hyderabad and Kolkata saw a marginal spike compared to last year. Residential launches showed a 90% increase in July-September 2021, data from Knight Frank has revealed. During the period, 58,967 new homes were launched, up from 27,232 last year.
“Offers, discounts and reductions in stamp duty boosted sales”
While discounts, offers, stamp duty exemptions and freebies offered by developers have played a key role in boosting sales, the report notes that stamp duty reductions in Mumbai, Pune and Kolkata may have -being a powerful stimulus in demand.
“The stamp duty cuts have been an important intervention applied by several state governments to trigger a strong recovery in sales volumes,” said Rajani Sinha, Chief Economist and Country Director (Research) of Knight Frank India, “ These measures convinced the caretakers to make the decision to buy a house. “
“While financial stress remains an important factor for developers in all markets, homebuyers’ preference for Class A developers and their access to cheaper credit has positioned them well in this recovering market,” said he added.
First publication: STI