New launches rose by 85% in 2021 against 2020; Hyderabad recorded a 144% yearly rise

  • Housing sales saw 71% Y-o-Y rise in 2021 to touch approx. 2.37 lakh units, regaining 90% of pre-COVID 2019 levels; MMR recorded highest sales at 76,400 units
  • MMR & NCR saw a maximum drop in unsold inventory with 10% & 5% respectively compared with 2020
  • Housing sales in the top 7 cities reached a new high of approx. 90,860 units in Q4 2021 – a 79% increase over Q4 2020; MMR & NCR together comprised a 50% share
  • Approx. 73,750 units were launched in Q4 2021 compared to approx. 52,820 units last year; MMR topped new supply with 18,675 units

 

INVC NEWS
Mumbai , 

Notwithstanding the devastating 2nd wave of COVID-19, Indian residential real estate staged a convincing comeback in 2021. ANAROCK data reveals that approx. 2.37 lakh units were launched across the top 7 cities during the year, touching the pre-COVID levels of 2019s. Yearly, new launches rose by 85% in 2021 over 2020.

 

Housing sales rose 71% Y-o-Y in 2021 with approx. 2.37 lakh units sold, thus reaching 90% of pre-COVID 2019 levelsMMR recorded the highest sales at 76,400 units, followed by NCR with approx. 40,050 units sold.

 

Of approx. 2.37 lakh units launched in 2021, the mid-segment (INR 40 lakh to INR 80 lakh) had the maximum share with 39%, followed by the affordable segment (priced under INR 40 lakh) with a 26% share. The premium segment (priced between INR 80 lakh to INR 1.5 Cr) had a 25% share.

Anuj Puri, Chairman – ANAROCK Group, says, “Despite the pandemic, 2021 was a fantastic year for the Indian housing sector. More or less an equal number of homes were launched and sold. The fact that launches were back to pre-COVID levels is very significant, and housing sales fell short of 2019 by a mere 10%. Of the four quarters, Q4 2021 was by far the best, with housing sales in the top 7 cities attaining a new high of approx. 90,860 units in Q4 2021. This was the highest quarterly sales performance since 2015.”

 

A tremendous rise in homeownership aspirations was aptly supported by developer discounts and offers, government incentives like Maharashtra’s stamp duty cut, and lenders maintaining decadal-low interest rates.

 

“Extrapolating on the performance in 2021, 2022 will see very satisfactory growth as long as the coronavirus pandemic remains in check in India,” says Puri. “Various trends will shape the sector in 2022 – Grade A developers will corner more market share, and sales will come back to the pre-pandemic levels of 2019. However, input cost pressure and supply chain issues may induce a 5-8% increase in property prices. End-users will remain the dominant market force, and peripheral areas of the larger cities will continue to see both supply and demand traction.”

 

New Launch Overview: 2021 vs. 2020

 

Y-o-Y, the top 7 cities saw approx. 2,36,700 new units launched in entire 2021, against 1,28,000 units in 2020 – a significant increase of 85%, which put new launches back on par with the pre-pandemic 2019 levels.

 

The key cities contributing to launches in 2021 were MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and NCR – together accounting for 76% of supply additions:

 

  • MMR saw approx. 56,880 units launched in 2021 – a significant rise of over 88% over 2020. Approx. 58% of the new supply was added in the sub-INR 80 lakh budget segment
  • Hyderabad added approx. 51,470 units in 2021 – a yearly increase of 144% over 2020 and a 71% increase over pre-COVID 2019. Approx. 81% new supply was added in the mid-segment (INR 40 lakh to INR 80 lakh) and the premium segment (INR 80 lakh to INR 1.5 Cr budget range)
  • NCR added 31,710 new units in 2021 compared to 18,530 units in 2020 – a significant rise of 71%. Approx. 52% of the new supply was added in the mid and premium segments
  • Pune added 39,870 units in 2021, a massive jump of 67% over 2020. Approx. 57% of the new supply was added in the mid-segment
  • Bengaluru added approx. 30,650 units in 2021, an increase of 43% over 2020. Approx. 72% of the new supply was added in the mid and premium segments
  • Kolkata added approx. 13,750 units in 2021, a massive increase of 290% over 2020. Approx. 71% of the new supply was added in the affordable segment
  • Chennai added approx. 12,370 units in 2021, an increase of 35% over 2020. Approx. 62% of the new supply was added in sub INR 80 lakh budget segments

 

 

City-wise New Supply (In Units) and Y-o-Y percentage change

 

 City Name

 

2021

 

2020

 

%Change (2020 Vs 2021)

 

 Q4-2021

 

 Q4-2020

 

 %Change (Q4-2020 Vs Q4-2021)

 

NCR

 

31,710

 

18,530

 

71%

 

12,720

 

5,520

 

57%

 

MMR

 

56,880

 

30,290

 

88%

 

18,680

 

11,910

 

36%

 

Bengaluru

 

30,650

 

21,420

 

43%

 

8,580

 

6,400

 

34%

 

Pune

 

39,870

 

23,920

 

67%

 

10,840

 

11,200

 

-3%

 

Hyderabad

 

51,470

 

21,110

 

144%

 

15,320

 

12,820

 

16%

 

Chennai

 

12,370

 

9,170

 

35%

 

1,670

 

3,930

 

-136%

 

Kolkata

 

13,750

 

3,530

 

290%

 

5,960

 

1,040

 

473%

 

Total

 

2,36,700

 

1,27,970

 

85%

 

73,770

 

52,820

 

40%

 

Source: ANAROCK Research

 

 

Overall Sales Overview: 2021 vs. 2020

 

Altogether, the top 7 cities saw approx. 2,36,530 housing units sold in the whole of 2021, against 1,38,350 units in 2020 – a hefty increase of 71%.

 

  • MMR saw maximum yearly sales of approx. 76,400 units among the top cities. City sales increased by 72% – from 44,320 units in 2020 to 76,400 units in 2021 (due to a significant increase of 88% in new launch supply)
  • Hyderabad saw a huge 197% increase in sales – from 8,560 units in 2020 to 25,410 in 2021
  • NCR saw sales increase by 73% – from 23,210 units in 2020 to 40,050 units in 2021
  • Pune saw a significant sales increase of 53% – from 23,460 units in 2020 to 35,980 units in 2021
  • Bengaluru saw sales increase by 33% – from 24,910 units in 2020 to 33,080 units in 2021
  • Chennai saw a hefty 86% increase in sales – from 6,740 units in 2020 to 12,530 units in 2021
  • Kolkata saw an 83% increase in sales – from 7,150 units in 2020 to 13,080 units in 2021

 

 

City wise Absorption (In Units) and Y-o-Y percentage change

 

 City Name

 

2021

 

2020

 

%Change (2020 Vs 2021)

 

 Q4-2021

 

Q4-2020

 

 %Change (Q4-2020 Vs Q4-2021)

 

NCR

 

40,050

 

23,210

 

73%

 

17,580

 

7,760

 

127%

 

MMR

 

76,400

 

44,320

 

72%

 

27,680

 

17,600

 

57%

 

Bengaluru

 

33,080

 

24,910

 

33%

 

12,300

 

7,900

 

56%

 

Pune

 

35,980

 

23,460

 

53%

 

11,930

 

9,260

 

29%

 

Hyderabad

 

25,410

 

8,560

 

197%

 

11,030

 

3,570

 

209%

 

Chennai

 

12,530

 

6,740

 

86%

 

4,680

 

2,460

 

90%

 

Kolkata

 

13,080

 

7,150

 

83%

 

5,660

 

2,350

 

141%

 

Total

 

2,36,530

 

1,38,350

 

71%

 

90,860

 

50,900

 

79%

 

Source: ANAROCK Research

 

 

Housing Inventory Status – 2021-end:

 

Increased launches and overall absorption in the top 7 cities in 2021, when compared to 2020, resulted in minor changes in available inventory. However, compared to 2019, there has been a 2% reduction in available inventory by the end of 2021. Data indicates that the top 7 cities altogether have total unsold stock of approx. 6.38 lakh units as of 2021-end. Among the top 7 cities, MMR and NCR saw a yearly decline of 10% and 5%, respectively.

 

Price Movements

 

Average residential property prices across the top cities increased by 3-5% in 2021 compared to 2020. Bengaluru and MMR witnessed the highest price increase of 5%, while Chennai and Kolkata witnessed a 3% increase.

 

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