Residential sales had dropped by a record 61% quarter-on-quarter in Q2 2020.
In the first quarter of 2021 calendar year, home sales increased 17% sequentially.
Cumulative residential sales across the top seven cities surged 83% over the prior year in Q2 2021.
In the first half of 2021, housing sales rose 18% year-on-year to more than 45,000. That, the report said, presents a clear sign of demand and buyer confidence coming back to the market.
Focus on mid and affordable segments continued in the first half of 2021, with 72% of the new launches in the sub Rs 1-crore category, Siva Krishnan, head-residential, India at JLL, was quoted as saying in the report. “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.”
A survey by the Confederation of Real Estate Developers’ Association of India, however, showed 95% of 4,813 developers from 217 cities see project delays as inevitable because of the second Covid-19 wave. Nearly 92% of the companies surveyed face worker shortage at sites, 83% are working with less than half the workforce, and over 82% of firms are encountering project approval delays.
“There is no denying the fact that the second Covid-19 wave dented the market following a good recovery curve,” according to Samantak Das, chief economist and head research & REIS, India, JLL. The impact, however, was muted compared to the same period last year, he said. “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,” Das said.
The top seven cities witnessed a 20% sequential decline in new launches at 27,057 units in the second quarter of 2021.
“As the second Covid-19 wave intensified, several developers deferred new launches and focused on the completion of under-construction projects and clearing their existing inventory,” the JLL report said. “Nevertheless, compared to the same period last year, new launches almost doubled. Despite states imposing lockdowns of varying intensities, developers launched projects across the seven cities.”