Mumbai tops all-India residential sales in the Q1 of 2021
Mumbai's architectural design is a blend of renowned ancient elegance, stunningly futuristic high rises, culture, and traditions structures, and so on. The city is acknowledged as India's commercial capital, it is so much more than just that.
Although Mumbai is among the most expensive housing markets in the country, a number of factors are constantly at play that have made purchasing a home in this city a reasonable option for many. This tendency of growing sales in the city has been fueled by reputable developers that guarantee adequate housing and on-time delivery, as well as the lowest-ever home loan interest rates in the last twenty years.
According to a recent research, India is leading independent real estate business, home sales in the top seven cities in India in quarter 2021 outperformed quarter 2020 by approximately 29%, equaling 58,920 units. This is much greater than pre-covid levels, indicating a resurgence in the economy.
The fact that the increased sale of residences is associated with an increase in their launches also lends support to the argument that the economic recovery is not really a flash in the pan. This clearly suggests that this is a sustainable pattern. In the first quarter of 2021, 62,130 housing units were built in the seven states, up 18 percent from the previous quarter and 51 percent year over year. The seven leading Indian cities are the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Hyderabad, Bengaluru, Pune, Kolkata, and Chennai.
MMR and Pune, which together counted for 31, 227 units, or 53 percent of total housing units sold in the quarter under review, led the increase in property sales in the seven cities.
MMR itself sold 20,350 housing units, accounting for 35% of the total 58,920 units sold across the seven cities under consideration. As a result, MMR is the country's largest residential sales market. The sale of housing units in MMR was up 16 percent from the previous quarter and up 46 percent year over year.
MMR also had the greatest share of launches in FY1 2021, with 14,820 launches. This accounts for 24 percent of the country's total 62,130 launches over this time. While the country's launch increase was 18 percent on a quarter-to-quarter basis and 51 percent on an annual basis.
Mumbai grew at a faster rate than the rest of the country. On a quarterly basis, launches in Mumbai increased by 24%, and on a year-over-year basis, they increased by 41%. In terms of inventory, or available apartments for sale, the MMR area has the most, with 1,97,040 housing units in Indian cities.
The desire to own a property in Mumbai remains strong, thanks to developers' numerous payment options, low interest rate regimes, and rebates that affect customer decisions. The robust rising trend in MMR's sale and launch data indicates that the city's household sector is slowly but steadily rebounding from pandemic-induced lows.
Quarter 2021 outperformed quarter 2020 by approximately 29 Percent.
Future prospects for the housing market
When the nation was put under lockdown between March and June 2020 because of the Coronavirus, it had such a devastating effect on the Indian real estate market that it halted all property transactions. Since then, the market has taken countless steps towards recovery, and just as it seemed that a recovery was on the radar, a second wave hit us, and we're now waiting for the third.
Despite fears of a third wave of the COVID-19 pandemic linger, India has accelerated vaccines, which may bring some relief, and hence the economic impact may be less severe than previously thought. The administration appears to be better prepared to cope with any issues that arise as a result of the epidemic, and to prevent any large-scale lockdowns that would be detrimental to the economy. For many people, owning a home is the greatest goal in life, and the pandemic has emphasized the necessity of doing so. As a result, it is projected that homebuyer optimism in Mumbai's real estate market will remain high.
With the holiday season approaching, experts anticipate that this optimism will push home purchases and lead to property values firming up. The government's extension of tax incentives, the RBI's maintenance of a low-interest rate policy that makes housing loans more affordable, and developer discounts and improved facilities would all help to maintain buyer traffic in Mumbai robust.
This scenario, however, is unlikely to persist long, as the high input costs that developers have absorbed thus far are actually passed on to home buyers. The continuation of low loan rates is also dubious, as inflation looms in the background of robust house demand, perhaps resulting in a rise in housing values in the MMR region. Experts feel that, given these prospects, now is the best moment to buy your dream home.