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After a period of a slump during the pandemic, the residential real estate market has bounced back with great success. After the first wave of the pandemic struck a blow to the real estate market, it had started to recover when the second wave again curbed the comeback that it was making at a steady pace. The ensuing lockdowns resulted in a significant deterioration in consumer sentiments, driving down the property sales once again. However, the revival of the real estate market has surpassed all expectations, with 2021 recording a 71% year-on-year growth compared to 2020.
More than 237,000 homes were sold in 2021, which is already 90% of the property sales recorded in 2019, before COVID had struck. Project launches also increased by 85% in 2021, despite the pandemic. Experts foresee new trends emerging in 2022, besides the current growth in property launches and sales continuing. The boom in sales would also result in various dynamics that home investors would have to take into account.
It also remains a noteworthy aspect that the fourth quarter of 2021 recorded the highest quarterly sales since 2015. In this quarter, 90,860 homes were sold in the top 7 cities, indicating massive growth. Developer discounts have played a major role in the trends, with the builders offering various perks to increase sales. However, various government sops and reduced loan rates have also helped push forward the rising interest among homebuyers.
The mid-segment, consisting of properties priced between INR 40 lakhs and INR 80 lakhs, seems to have grown the most in terms of property launches. 39% of the property launches in 2021 were from this segment. The affordable segment, comprising of properties priced below INR 40 lakhs was next, with 26% of the market share. The premium segment, i.e., properties priced from INR 80 lakhs to INR 1.5 crore, followed closely with a 25% market share.
The unsold inventories have also started shrinking in key real estate markets like MMR and NCR. All these trends are here to stay in 2022, and most changes are likely to be positive.
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