Residential sales in Q2 (April-June) 2021 increased by 83 per cent as compared to Q2 2020, across the top seven cities.
According to JLL's Residential Market Update - Q2 2021, released on Tuesday, sales were driven by the low base effect, less stringent lockdowns, and accelerating vaccination drives during Q22021, demonstrating improved resilience in the market.
By comparison, in Q1 2021, sales of residential units continued an upward trajectory, increasing by 17 per cent on a sequential basis.
During the first wave of Covid-19, residential sales dropped by a record 61 per cent quarter-on-quarter to 10,753 units in Q2 2020. However, the impact of the second wave has been limited with sales in Q2 2021 dipping by 23 per cent to 19,635 units.
Sales of more than 45,000 residential units were recorded in H1 2021 as against 38,204 units in H1 2020, an increase of 18 per cent YoY. The sustained levels of residential sales present clear signs of demand and buyer confidence coming back to the market.
The need for secured tangible assets and aspirations to own larger homes as remote working becomes the new norm is driving sales of residential properties across the country.
Siva Krishnan, Head - Residential, India, JLL said: "Development focus on mid and affordable segments continued in H1 2021 with 72 per cent of the new launches in the sub Rs 10 million category. Moving ahead, while the focus on these price segments is expected to continue, developers are likely to consider new launches of larger-sized apartments in order to capture changing consumer preferences."
Mumbai has consistently been the largest contributor to sales over the past five quarters. In H1 2021, Mumbai accounted for 26 per cent of the total sales.
Furthermore, Delhi NCR, Pune, and Hyderabad followed, each contributing 15 per cent or more.
Samantak Das, Chief Economist and Head Research & REIS, India, JLL said: "The residential sector displayed improved resilience in Q2 2021 when compared to Q1 2021. There is no denying the fact that the second Covid-19 wave dented the market following a good recovery curve."
"However, the impact was muted when compared to the same period last year. Most of the changes observed in the sector have been structural in nature and demand for homes is only expected to increase."
If the downward trajectory in Covid-19 cases is sustained, the sector is expected to make a healthy recovery in the second half of 2021, he added.
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