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NEW DELHI: Housing demand exceeded pre-COVID levels with 92% year-on-year sales growth over the July-September period in eight major cities, mainly driven by stable prices, very high mortgage rates low, real estate consultant Knight Frank India said Monday. Releasing its India real estate update for the third quarter (July-September quarter) of calendar year 2021, the consultant reported that home sales rose to 64,010 units from

33,404 units during the same period last year. During the previous quarter from April to June, 27,453 residential units were sold.

“Total residential sales for the top eight markets examined in the third quarter of 2021 reached 104% of the 2019 quarterly average,” the consultant said, adding that sales had exceeded pre-COVID levels.

Addressing a video conference, Knight Frank India Chairman and CEO Shishir Baijal attributed the strong recovery in home sales to “stable house prices, historically low interest rates on home loans and a changing attitude of clients towards home ownership “.

Rajani Sinha, Chief Economist and National Research Director, Knight Frank India, said: “The stamp duty cuts have been an important intervention by several state governments to trigger a strong recovery in sales volumes. These measures convinced the caretakers to make the decision to buy a home. ”

With the holiday season coming up, Baijal said the market is gearing up for the launch of new projects and consumers are likely to reciprocate.

“While financial stress remains an important factor for developers in all markets, homebuyers’ preference for Class A developers and their access to cheaper credit has positioned them well in this recovering market,” said he added.

Baijal said the market appears to have taken into account the very low probability of a full lockdown as seen last year due to the wide availability of the COVID vaccine.

According to the latest data for the third quarter of 2021, home sales in Mumbai more than doubled to 15,942 units in the July-September period, from 7,635 units in the same quarter of last year.

The Delhi-NCR market grew 48% in sales to 9,101 units compared to 6,147 units.

Home sales in Bangalore doubled to 11,337 units from 4,912 units, while demand in Pune increased 94% to 9,565 units from 4,918 units.

Chennai saw its sales increase by 17% to 3,610 units from 3,085 units.

Residential property sales in Hyderabad were more than three times higher at 5,987 units compared to 1,609, while Kolkata

saw a 75 percent increase in demand to 6,861 units from 3,921 units.

Home sales in Ahmedabad increased 37% to 1,607 units in July-September 2021, compared to 1,176 units in the corresponding period of the previous year.

Knight Frank India, in his report, also mentioned that the share of ticket size sales from Rs 50 lakh to Rs 1 crore rose to 35% in the third quarter of 2021, from 32% a year ago. This can be attributed to the need of home buyers to move to larger living spaces with better amenities.

The share of home sales in the category of banknotes under Rs 50 lakh fell to 43% in the third quarter of 2021, from 45% a year ago, as the income disruptions caused by the pandemic were more severely affected. felt by the low-income population, he added.

Weighted average prices across all markets remained stable in the third quarter of 2021 and did not decline compared to the previous quarter. The Chennai, Hyderabad and Kolkata markets saw prices increase slightly year-on-year during the quarter.

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