Residential sales increased by 114% Year-on-Year (Y-o-Y) in the fourth quarter of 2021 across India’s seven major metropolitan centres. According to JLL’s Residential Market Update – Q4 2021.
“Looking at the yearly numbers, the residential sector has made a strong comeback in 2021. The year saw sales increase by 72% year-on-year with around 128,000 units sold in the entire year. It reached nearly 90% of the pre-Covid 2019 sales levels. With good economic conditions and the festive season, developers launched projects quite aggressively. Around 74% of the projects launched in 2021 were in the affordable, lower mid, and mid category as demand is the highest in these segments. Interest rates on housing loans are at an all-time low, thus creating affordable synergies in the market. This is the best time to buy one’s own house and thus benefit from not just lower interest rates but better affordability as well,” said Siva Krishnan, Head - Residential, India, JLL.
“India’s residential sector has witnessed green shoots of recovery and is expected to gain further momentum in 2022 if the third wave is contained. The reduction in home loan rates to a decadal low, coupled with incentives and discounts by the developers, and improved buyer confidence augur well for the residential sector. We do expect some short-term lull in market activity given the rise in Covid cases and restrictions being put in place by state governments. With physical site visits likely to be impacted, sales momentum may see some temporary sluggishness. We will also keep a close eye on the interest rates, given that US FED measures could result in a hardening of interest rates over the second half of 2022,” added Dr. Samantak Das, Chief Economist, and Head Research & REIS, India, JLL.