Mumbai: Ahead of the festive season, should one invest in a new house? The industry believes one should. In fact, two industry reports on Wednesday recommend buying a house.
Brokerage firm Proptiger, said residential sales improved in July-September. The July period was four months from when the national lockdown started (March).
According to PropTiger:
1. Residential home sales aggregated to 35,132 units during Q3. This was an increase of 85 per cent over previous quarter (Covid quarter).
2. 45 percent of sales was in affordable housing - under Rs 45 lakh price.
3. On a year-on-year basis, however, sales declined 57 per cent compared with the third quarter or 2019.
4. New supply grew 60 percent on a quarter-over-quarter basis, with 43 per cent of the 19,865 units launched coming in via affordable housing.
5. On a y-o-y basis, launches showed 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 at the PropTiger.
"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 added.
Also announced were findings from Anarock Property Consultants. It said housing sales would rise by 35 percent during festive season.
Here are the five important take-aways from Anarock's study.
1. In the July-September quarter, the major seven markets collectively reported the sale of 29,520 housing units.
2. Sales in Q3 2020 is still low compared to pre-COVID-19 third quarter of 2019 when housing sales were nearly 45,200 units.
3. Housing sales could bump to 90 percent of pre-Covid levels of Q1 2020.
4. Sales in Mumbai Metropolitan Region (MMR) may witness spurt of 33-36 per cent in sales. Buyers keen on reduced stamp duty charges and other freebies.
5. Sales in Hyderabad, Bengaluru and Pune are likely to grow by 20-24 per cent, 30-35 per cent and 34 per cent in Q4 2020 respectively, as against Q3 2020.
"The reason for the rise is the prevailing lowest-ever home loan interest rates, developers' willingness to offer good deals and discounts, coupled with limited-period government incentives such as reduced stamp duty and registration charges in markets like MMR," said Santhosh Kumar, Vice-Chairman, Anarock Property Consultants.