Sales figures for the third quarter of the 2020 from July to September indicate signs of a recovery in the real estate sector, though some of this growth could potentially be attributed to pent-up demand due to the prolonged lockdown across the country in the prior quarter due to the coronavirus pandemic, a report by PropTiger.com said.
As per the ‘Real Insight Q3 2020’, a quarterly analysis of India’s eight prime residential markets by online real estate brokerage firm PropTiger.com, residential home sales aggregated to 35,132 units during Q3, an increase of 85 per cent over the previous quarter.
Housing units in the sub-Rs 45 lakh price bracket, categorised as the affordable housing, made the biggest contribution to sales during the quarter, contributing 45 per cent to overall sales numbers.
On a year-on-year basis, however, sales declined 57 per cent compared with the third quarter or 2019.
New supply grew almost 60 per cent on a quarter-over-quarter basis, with 43 per cent of the 19,865 units launched coming in through the affordable housing segment.
However, on a year-on-year basis, launches showed a significant downward trend, declining by 66 per cent.
“Green shoots are visible, pointing to the start of a recovery in residential real estate, evidenced by improvement in new launches and sales on a quarter-over-quarter basis,” said Dhruv Agarwala, Group CEO, PropTiger.com.
He noted that the unprecedented times have made buyers aware of the important role that homes play in ensuring their well-being as well as their physical and emotional security.
“This, together with the fact that real estate is a hard asset, and the fact that home loan rates are near a 15-year low have encouraged buyers to return to the market, Agarwala said.
Mani Rangarajan, Group COO, PropTiger.com said: “We are optimistic that sales during the festive season will be encouraging and help drive further recovery in the sector.