The residential market continues to see recovery in 2021 and registered a record jump of 51% in the housing sales, Knight Frank says. In its report titled, Indian Real Estate : 2021, the realty knowledge think tank also talks about the slump in office space leasing and the buying behaviour of cities of the country, a report by SURFACES REPORTER (SR).
A Jump in Housing Sales
According to the report, while the housing sales increased to 232,903 units in 2021 from 154,534 units in 2020, the demand was slightly down to 5 % from 2019 pre-pandemic levels. The same is also 37% lower than the 2011 peak numbers. Showing its resilience towards the ongoing pandemic, the housing sales in the second half of the last year saw the highest volume since the first half of 2016.
However, the office segment continued to show a downward trend due to the adverse impact of second COVID wave and subsequent lockdowns, the gross leasing of office space fell to 38.1 million square feet in 2021, from 39.4 million square feet in the previous year. This is very low as compared to the record 60.6 million square feet achieved in 2019.
Pinning hopes on the stronger market sentiments to aid sales volumes in near future, Knight Frank India CMD Shishir Baijal, said, "Despite the disruptions caused by the pandemic, residential sales momentum increased across the key eight markets of the country due to a plethora of demand stimulants such as lowest home loan rates, government sops and change in attitude."
Price Revision
In terms of 12-month residential price change, Chennai, Hyderabad and Bengaluru registered an increment of 7 per cent, 5 per cent and 4 per cent, respectively. While Mumbai showed a marginal increment of 1%, the prices were stable in Pune, Kolkata and Ahmedabad while Delhi-NCR witnesses a marginal decline of 1%.
According to the annual data, housing sales in Mumbai rose 29 per cent to 62,989 units in 2021, from 48,688 units in the previous year while Office leasing fell 37 per cent to 3.8 million square feet.
In Delhi-NCR, housing sales increased 65 per cent to 35,073 units from 21,234 units while Office leasing rose 38 per cent to 6.4 million square feet.
Housing sales in Bengaluru were up 61 per cent to 38,030 units, from 23,579 units and Office leasing was marginally down to 12.2 million square feet.
In Pune, housing sales rose 38 per cent to 37,218 units, from 26,919 units, while office leasing grew slightly to 3.8 million square feet.
In Chennai housing sales went up 38 per cent to 11,958 units and office leasing fell 14 per cent to 3.9 million square feet.
While, in Hyderabad, housing sales jumped over two times to 24,318 units and office leasing remained flat at 6 million square feet.
Housing sales in Kolkata grew 62 per cent to 14,405 units and office leasing dropped marginally to 0.8 million square feet.
Ahmedabad reported a 37 per cent rise in housing sales in 2021 at 8,911 units as against 6,506 units in the previous year and Office leasing fell 12 per cent to 1.1 million square feet.
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