Residential sales have continued to do well in Q1 CY 2021, after witnessing a robust CY 2020. Buyers across cities prefer to purchase complete or near-complete apartments. This has led to a reduction of completed inventory in the overall supply available with the developers.
The renewal of demand has led to bottoming of prices in certain cities, whilst other cities have witnessed small increases. The sales launch of new residential projects too has increased across the top cities, signalling the start of a new development cycle.
Mumbai and Pune were the best performing markets benefitting partly from regulatory support in the form of reduced stamp duty. To benefit from the discount in stamp duty, several large-ticket purchases were observed leading to liquidation of high-value inventory stock.
For a growing economy like India, robust residential sector is key to meeting the fundamental need of an aspiring demography. As developers change their approach towards timely delivery of projects and enhancing the customer experience, there is a large demand that remains unserved.
