Tag: Head Marketing & Communication

Delhi NCR witnesses 23% increase in sales volume over Q4 2020

Delhi NCR has been witnessing a continuous increase in the sales volume since Q2 2020. The region saw a sale of 2,250 units in Q2 2020, 3112 units in Q3 2020, 4440 in Q4 2020, and 5448 in Q1 2021. The percentage growth in sales volume Q1 2021 over Q 4 2020 is 23%, which is the third-highest growth volume among the major cities in India. The figures were released by JLL in Residential Market Update – Q1 2021. The number one spot was taken by Kolkata with 201% growth followed by Chennai with 28% growth in Q1 2021 over Q4 2020.

“The sustained growth in sales presents clear signs of demand and buyer confidence coming back to the market. This has been on the back of historically low home loan interest rates, stagnant residential prices, lucrative payment plans and freebies from developers and government incentives such as the reduction of the stamp duty in states like Maharashtra and Karnataka (for affordable housing). The ease of lockdown restrictions and the commencement of the vaccination drive have further aided in bringing buyers back to the market,” said Dr. Samantak Das, Chief Economist and Head Research & REIS, JLL.

According to the finance ministry, the 0.4 per cent growth in the December quarter suggests that the economy has returned to pre-pandemic levels and represents a further strengthening of the V-shaped recovery. The real estate sector’s optimism is palpable, as new projects are being launched at a rising pace, signaling optimism and demand that will contribute to more economic recovery. “As the real estate sector recovers from losses, people are willing to invest in projects developed by reputable developers. In the end, it’s all about how people view a developer, and we’d like to thank our customers for putting their faith in us,” says Dhiraj Jain, Director, Mahagun Group.

It was a heartfelt moment for 40-year-old Amit Trivedi as he booked a property in Delhi NCR as home loan interest rates are hovering around sub-7%. He was glad as he was waiting for the home loan interest rates to come down since he moved to Delhi in 2009. People like Trivedi are happy to take a step towards realizing the dream of owning a home in Delhi NCR. Vijay Verma, CEO, Sunworld Group says, “It’s a good sign for the sector, which will have to react more rapidly to meet the increased demand for real estate assets as a result of the global pandemic. Soon, the market will be flooded with investment opportunities that offer investors high returns and better living choices for end-users.”

Overall also, the Indian economy is recovery better-than-expected. At constant rates, the Indian economy was worth Rs 145.66 lakh crore in FY20. According to India Ratings’ forecasts, it will contract 7.8% year y-o-y to Rs 134.33 lakh crore in FY21 and grow 9.6% y-o-y to Rs 147.17 lakh crore in FY22. “To get your returns right, what you need is a structured market analysis. This is a great time for end-users or long-term investors to get into the market. Today, the buyer is also in the driver’s seat while purchasing a new property that has recently been completed or is nearing completion,” says Harvinder Singh Sikka, MD, Sikkaa Group.

Against estimates, the first three quarters of 2020 saw sales of around Rs 90,000 crore in seven major cities, compared to around Rs 1,50,000 crore in the same timeframe of 2019. Despite a roughly 40%-45% decrease in revenue from the previous year, the year must be seen in the background of the global economic downturn triggered by the pandemic. Major cities’ housing sales value increased substantially over pre-COVID-19 levels, owing mainly to the mid-segment; NCR witnessed more than 150 per cent increase in sales in the third quarter of 2020.

Dhiraj Bora, Head Marketing & Communication, Paramount Group says, “Home loan rates were also lowered as a result of the government’s repo rate cuts and liquidity injections. To avoid a sudden decrease in sentiment, the developer community also implemented appealing payment plans. Markets began to rebound after the lockdown was lifted, amid a downturn in economic activity that was weighing on the overall economy. Finally, the previous year’s growth figures were restored in the last quarter, and the industry returned to a state of near-normalcy.”

Real estate likely to see a windfall in 2021

New Delhi: Riding on expectations from the slew of measures that the government took in 2020, the real estate sector has high hopes from 2021. After a gloomy time of lockdown, the sector picked itself up and cashed in on the pent up demand due to people’s realization of the importance of real estate assets. The segment came out as the safest investment option in comparison to other tools, and this realization made even the fence-sitters come out in search of the right property.

The optimistic expectations can also be attributed to the economic growth predictions of the RBI. In the first quarter of the next fiscal year, the RBI suggested growth could be 21.9 per cent (largely because of the base effect as the economy contracted by 23.9 per cent in Q1 2020-21) and overall 6.5 per cent for the first half of 2021-22. “The Indian Economy is bouncing back very strongly, this combined with the various government initiatives to boost demand such as low-interest rates and reduction of taxes is likely to drive investments into the Indian economy. With the economy growing, demand in retail and commercial is also likely to gain momentum. We also expect investors to once again invest in commercial and retail assets due to the above factors and as other stable asset classes giving very low returns. Commercial and Retail Real Estate investments provide ROI in the short and long-term, and this is unique only to this asset class,” says Uddhav Poddar, MD, Bhumika Group.

The retail segment looks promising, especially after the pandemic time, as people are likely to prefer visiting places that can provide them with a safe environment. “Malls and commercial spaces that are going to stick to the new normal set after the coronavirus are going to score over the open-air markets. The footfall in malls will definitely increase, and the retailers will utilize the opportunity to the hilt,” says Sagar Saxena, Project Head, Spectrum Metro.

The residential segment is going gaga over the reduced home loan interest rates, which are around sub-7%. “Since the time home-loan rates were reduced, we have been witnessing an increased number of inquiries; the same trend is going to continue in 2021. The demand for gated communities has increased as people are concerned about the healthy lifestyle; the pandemic has also made people realize the importance of having their own abodes,” says Harvinder Singh Sikka, MD, Sikka Group.

In the announcement after the latest Monetary Policy Committee review, the RBI mentioned that it would continue to employ instruments to ensure ample liquidity. Some of the announcements during the year include Rs 18,000 crore additional funding for PMAY for Urban area, income tax relief for developers and homebuyers for houses that cost up to Rs 2 cr, approval of the Union Cabinet to set up a Rs 25,000 crore (US$ 3.58 billion) alternative investment fund (AIF) to revive around 1,600 stalled housing projects in top cities, 1.12 crore houses sanctioned under PMAY in urban areas, creation of Affordable Housing Fund (AHF) in the National Housing Bank (NHB) with an initial corpus of Rs 10,000 crore, etc. “The sector has always been saying that liquidity is an issue for the real estate sector. The government of India announced several packages that are likely to have a positive impact in 2021. Looking at the response in 2020 after the Unlock, the coming year looks promising,” says Ashok Gupta, CMD, Ajnara India.

Adds Dhiraj Bora, Head Marketing & Communication, Paramount Group, “The year would be beneficial for all segments of residential such as theme-based projects, luxury, and mid-segment. The year 2021 is going to be the year when real estate will see a windfall due to the increased demand for real estate assets. The marketing has evolved, and developers are using new ways to reach out to the potential buyers, including the use of digital media.”