Among the top urban conglomerates, the Mumbai metro region witnessed the most number of units sold in the September quarter. Despite having the most number of reported COVID cases and severe restrictions in place, the region recorded 9,200 units of sales and 7,890 new unit launches – highest in the country. With 5,400 units sold Bengaluru captured the second spot, followed by the national capital region (5,200 units sold and 6,800 units launched).
“Despite the inexorable rise of Covid-19 cases, periodic local lockdowns across states, residential sales and new launches saw reasonable momentum in Q3 2020. On a q-o-q basis, the jump has been massive for both new launches and sales; the Apr-Jun quarter was more of an outlier with most activity at a standstill”, said Anuj Puri, chairman, Anarock.
According to him, reduced stamp duty charges in Maharashtra coupled with developers’ incentives and rock-bottom home loan interest rates remained key factors behind better sales in the region. In fact, Pune, another urban hub from the state, stood at the fourth spot with 4,850 units sold during the quarter, ahead of larger metros like Kolkata and Chennai.
As per analysis by housing.com, demand for residential units remained higher in non-metros like the tier-2 and 3 towns. Its Virtual Residential Demand Index has shown, the demand from small cities had been increasing steadily but saw a significant spike in August. Overshadowing the metros, the index jumped to 210 points for these areas, compared to 150 points for the metros post the nation entering into Unlock Phase 4.0.
“The interest in the smaller cities has been gradually increasing and the share increased to 27 percent in the first half of 2020, as compared to 18 percent in the same period in 2019”, it noted. Cities such as Agra and Amritsar grew by more than 100 per cent in the virtual residential demand over pre-Covid times, while Vadodara, Ludhiana, Mangalore, Chandigarh and Lucknow saw more than 80 percent growth in residential demand during the same period.
According to it, reverse migration of the corporate workforce and increased flexibility due to remote working is one of the key drivers cited for this surge in virtual residential demand.
The current trend indicates, during the upcoming festive season quarter (Oct-Dec) housing sales
may recover to the pre-Covid-19 levels, Anarock predicted.