MMR and Pune accounted for 53% of total sales in top seven Indian cities in the first quarter of 2021 as against 33% in 2013, showed data from Anarock Property Consultants. In a major trend reversal over the last eight years, the once-most active housing sales markets of Delhi-NCR have dropped sharply in their sales share.
Of a total of 58,300 homes sold across the top seven cities in the March quarter, MMR and Pune together accounted for an impressive 53% share, while NCR contributed just 15%. In 2013, of a total of 3.19 lakh units sold across the top 7 cities, the two cities in Maharashtra contributed 33% while NCR comprised the highest share of 37%.
“From 2013 to date, MMR and Pune have been consistently ramping up year-on-year sales share while Delhi-NCR saw a decelerating trend. The major factors aiding these western markets included active implementation of MahaRERA and timely government interventions to boost housing demand. Simultaneously, developers here put in determined efforts to bridge the demand-supply gap,” said Anuj Puri, Chairman – ANAROCK Property Consultants.
In MMR, according to him, developers have managed to bridge the gap by launching affordable homes in new areas like Dombivli and Boisar priced within Rs 45 lakh and most leading developers efficiently changed gears to tap the growing budget housing demand.
“The substantial increase in MMR’s housing sales in the first quarter of 2021 can be credited to measures like reduced stamp duty, an all-time low home loan interest rates at 7 percent, a significant correction in apartment prices, as well as a surge in household savings. These factors seem to have convinced homebuyers that now is the right time for them to invest in real estate. MMR has recorded a lot of pent-up demand in the last seven to eight years and all that demand is now getting converted into sales,” said Aditya Kedia, Managing Director, Transcon Developers.
During this period, there were no major variations in overall housing sales share of the primary southern markets Bengaluru, Hyderabad and Chennai whose contribution stayed relatively between 26% to 35%.
The Delhi-National Capital Region, on the other hand has continued to pay the price of inordinate project delays and unfavourable consumer sentiments, while the southern markets remained end-user driven and thus maintained an even keel, with developers focusing squarely on consumer demand.