"With some further recovery expected in H2, ICRA is revising its earlier estimate of sales volume decline in FY2021 to 35-40 per cent," it said in a statement.
ICRA said the uptick in absorption levels during the second quarter of FY2021 has been driven by affordable and mid/upper-mid segments.
The residential real estate segment witnessed a sharp recovery in the September quarter, post a severe decline in Q1 FY2021.
"The Covid-19 pandemic had triggered one of the worst demand crashes that the Indian residential real estate industry witnessed in recorded history.
"Overall, the housing sales volume witnessed a year-on-year decline of 50 per cent in H1 FY2021 across the top eight cities of the country," ICRA said.
However, sales volume bounced back considerably, with a quarter-on-quarter growth of 60 per cent recorded across property markets in the second quarter of the current fiscal.
The recent improvement was primarily driven by a gradual unlocking of the economy, pent-up demand and improved affordability on the back of reduced home loan rates and attractive payment schemes/discounts, the rating agency said.
According to PropTiger.com, housing sales across eight cities dropped 54 per cent in January-September 2020 to 1,23,725 units from 2,67,333 units in the corresponding period of last year.
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