Sales figures for the third quarter (July to September) of the calendar year 2020 pointed to signs of a recovery in the real estate sector, though some of this growth could be attributed to pent-up demand due to the prolonged lockdown, according to the ‘Real Insight Q3 2020’, a quarterly analysis of eight prime residential markets by PropTiger.com.
The numbers said the report, also points to the importance of the affordable housing segment in the future growth of the sector.
Residential home sales aggregated to 35,132 units during Q3, an increase of 85 pc over the previous quarter. Housing units in the sub-Rs 45 lakh price bracket, categorized as the affordable housing segment under income tax laws, made the biggest contribution to sales during the quarter, contributing 45 pc to overall sales numbers.
While year-over-year sales comparisons may not be relevant given the current extraordinary circumstances, this pointed to a significant decline of 57 percent compared to Q3’19, added the report.
New supply grew almost 60 pc on a quarter-over-quarter basis with 43 pc of the 19,865 units launched coming in through the affordable housing segment. However, on a year-over-year basis, launches showed a significant downward trend declining by 66 percent.
“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. These are unprecedented times, which have made buyers aware of the important role that homes play in ensuring their well-being as well as their physical and emotional security. 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 has encouraged buyers to return to the market”, said Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com & Makaan.com.