Demand for residential property to be below pre-Covid levels in 2021: Report
The consultant also estimated sales to further increase in 2022 to 2,64,625 units and 3,17,550 units in 2023.
Demand for residential property would be lower than pre-Covid levels in 2021, however housing sales are likely to rise by 30% (YoY) across seven major cities to 1,79,527 units from 1,38,344 units last year, according to property consultant Anarock. The consultant also estimated sales to further increase in 2022 to 2,64,625 units and 3,17, 550 units in 2023.
In 2019, housing sales stood at 2,61,358 units across seven cities which includes, Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Bengaluru, Hyderabad, Chennai and Kolkata.
The residential sector was showing healthy YoY growth since 2017 until the latest peak year of 2019, but this trajectory was derailed by the Covid-19 pandemic, making 2020 a watershed year for the housing sector, according to a report in The Times of India.
While the second half of the year did showcase the remarkable resilience of the Indian residential real estate, overall the sector hit a rock bottom, it added.
Sales exceeding supply to continue
Anarock said the ongoing trend of sales exceeding supply is likely to continue. It further added that 2021 is expected to witness an increase of 35% in housing launches and a 30% increase in sales over the previous year. While compared to 2019, supply and sales may be lower by 28% and 31%, respectively.
The unprecedented rise in homeownership sentiment, faster adoption of technology and digital marketing, and innovative business practices have served to soften the overall impact of Covid-19 on the Indian residential sector, the consultant added in its report.
According to Anarock data, housing sales stood at 3,42,980 units in 2014, 3,08,250 units in 2015, 2,39,260 units in 2016, 2,11,143 units in 2017 and 2,48,311 units in 2018.