- Approx. 62,800 units sold in Q3 2021 against 29,520 units in Q3 2020; a quarterly surge of 156%
- Approx. 64,560 new units launched in Q3 2021 against 32,530 units in Q3 2020; a q-o-q increase of 78%
- Mid & premium housing dominates new supply with a 41% & 25% share respectively; affordable housing share at 24%
- Of the total new supply in Q3 2021, MMR & Hyderabad saw the highest share of 26% & 23%, respectively; in housing sales, MMR topped the list with a 33% share, followed by NCR with 16%
- Avg. property prices rose 3% y-o-y in the top 7 cities due to increased development input costs – to INR 5,760 per sq. ft. in Q3 2021; Bengaluru saw a 4% annual rise to INR 5,150 per sq. ft
- MMR shed 8% of its unsold stock y-o-y – at 1.92 lakh units as on Q3 2021 end; NCR saw a 3% yearly decline with inventory now at nearly 1.67 lakh units
Mumbai, 29 September 2021: In Q3 2021, housing sales surged 113% y-o-y across the top 7 cities – from approx. 29,520 units in Q3 2020 to nearly 62,800 units in Q3 2021. MMR accounted for 33% of the total sales, followed by NCR with a 16% share.
Meanwhile, new launches in the top 7 cities rose by 98% yearly – from approx. 32,530 units in Q3 2020 to approx. 64,560 units in Q3 2021. While MMR continued to see the highest number of new launches (of approx. 16,510 units) in the quarter, Hyderabad was close behind with a new supply infusion of approx. 14,690 units.
Interestingly, the mid-segment (homes priced INR 40-80 lakh) and premium homes (priced b/w INR 80 lakh to INR 1.5 Cr) continue to dominate new supply with 41% and 25% shares, respectively. The affordable housing segment (units priced <INR 40 lakh) saw its supply share reduce to 24% in the quarter.
Average property prices saw a 3% yearly increase across the top 7 cities – to INR 5,760 per sq. ft. in Q3 2021 from INR 5,600 per sq. ft. in Q3 2020. Bengaluru leads with an approx. 4% annual rise – from INR 4,975 per sq. ft. in Q3 2020 to approx. INR 5,150 per sq. ft. in Q3 2021.
“IT/ITeS continues to drive the bulk of housing demand in the top 7 cities,” says Anuj Puri, Chairman – ANAROCK Group. “In Q3 2021, significantly improved job security and robust hiring in the IT/ITeS and financial sectors piggybacked on record-low home loan rates and growing homeownership sentiment. The ongoing WFH culture continues to influence residential sentiment on two major fronts – overall housing demand and unit sizes. The fast-paced vaccination drive is an added sentiment booster, especially in terms of increased site visits.”
“With new launches increasing by 98% and housing sales skyrocketing by 113%, Q3 2021 stands in stark contrast to this period last year,” says Puri. “MMR and NCR together accounted for nearly 50% of the overall housing sales in the quarter.”
In previous periods of unprecedented demand, housing prices invariably rose steeply. In the current pandemic period, they have remained more or less stable, and developers were actively sweetening the deal with added offers and discounts in this period, effectively keeping a lid on the overall cost of property acquisition. MMR distinguished itself with an impressive 8% y-o-y reduction in its unsold stock. Unsold inventory in the region stood at 1.92 lakh units as of Q3 2021 end. NCR saw a 3% yearly decline.
Q3 2021 Overall Sales Overview:
Residential sales stood at approx. 62,800 units in Q3 2021 across the top 7 cities, against approx. 29,520 units in Q3 2020. The y-o-y increase was 113%, and the q-o-q sales surge a stellar 156%. NCR, MMR, Bengaluru, and Pune together accounted for 79% of the sales in the quarter.
- Hyderabad recorded sales of approx. 6,735 units in Q3 2021 – a massive spike of over 300% over Q3 2020, mainly due to a continuous flow of new supply over the last 4-5 quarters.
- MMR and Pune also saw a significant sales surge in the quarter compared to other top cities – by 128% (approx. 20,965 units) in MMR and 100% (approx. 9,705 units) in Pune.
- NCR and Bengaluru saw sales in Q3 2021 increase by approx. 97% (approx. 10,220 units) and 58% (approx. 8,550 units) respectively against Q3 2020.
- Chennai saw approx. 3,405 units sold in Q3 2021 – a significant increase of 113% over Q3 2020.
- Kolkata saw 2X sales jump in Q3 2021 against Q3 2020, with approx. 3,220 units sold in this quarter.
| City-wise Absorption (In Units); Y-o-Y & Q-o-Q Percentage Change | |||||
| City | Q3 2021 | Q2 2021 | % Change (Q2 2021 vs Q3 2021) | Q3 2020 | % Change (Q3 2020 vs Q3 2021) |
| NCR | 10,220 | 3,470 | 195% | 5,200 | 97% |
| MMR | 20,965 | 7,400 | 183% | 9,200 | 128% |
| Bangalore | 8,550 | 3,560 | 140% | 5,400 | 58% |
| Pune | 9,705 | 3,780 | 156% | 4,850 | 100% |
| Hyderabad | 6,735 | 3,240 | 108% | 1,650 | 308% |
| Chennai | 3,405 | 1,590 | 114% | 1,600 | 113% |
| Kolkata | 3,220 | 1,520 | 112% | 1,620 | 99% |
| Total | 62,800 | 24,560 | 156% | 29,520 | 113% |
ANAROCK Research
urce: ANAROCK Research
Q3 2021 New Launch Overview:
The top 7 cities saw approx. 64,560 new units launched in Q3 2021, against approx. 32,530 units in Q3 2020 – a significant y-o-y increase of 98%. Approx. 66% of this new supply was in the mid-range and premium segments (ticket sizes sub-INR 40 Lakh to INR 1.5 Cr) during the quarter.
The key cities contributing to new unit launches in Q3 2021 were MMR, Hyderabad, Pune, and NCR, which cumulatively accounted for 77% of the supply addition.
- MMR saw approx. 16,510 units launched during this quarter – a yearly increase of approx. 52% against Q3 2020. Interestingly, the affordable and mid- segments added over 65% of the new supply.
- Hyderabad added approx. 14,690 units in Q3 2021 – a yearly increase of 67% over Q3 2020. Over 78% of the new supply was added in the sub-INR 40 lakh to INR 1.5 Cr price bracket.
- Pune added new supply of approx. 10,290 units in Q3 2021 compared to approx. 4,180 units in Q3 2020 – a massive increase of 146%. Approx. 54% of this new supply was in the mid-segment.
- NCR added approx. 8,410 units in Q3 2021 – a yearly rise of 19%. Approx. 78% of the new supply was added in sub-INR 40 lakh to INR 1.5 Cr price bracket.
- Bengaluru saw new launches increase by 32% from the previous year Q3 2020 with approx. 7,680 units launched in Q3 2021.
- Chennai added approx. 2,980 units in Q3 2021 – a y-o-y increase of 48% over Q3 2020.
- Kolkata added approx. 4,000 units in Q3 2021 – an increase of 196% over Q3 2020. Over 58% of the new supply was in the affordable segment.
| City-wise Supply (In Units); Y-o-Y & Q-o-Q Percentage Change | |||||
| City | Q3 2021 | Q2 2021 | % Change (Q2 2021 vs Q3 2021) | Q3 2020 | % Change (Q3 2020 vs Q3 2021) |
| NCR | 8,410 | 3,820 | 120% | 6,810 | 19% |
| MMR | 16,510 | 6,880 | 140% | 7,890 | 52% |
| Bangalore | 7,680 | 6,690 | 15% | 5,840 | 32% |
| Pune | 10,290 | 4,920 | 109% | 4,180 | 146% |
| Hyderabad | 14,690 | 8,850 | 66% | 4,900 | 67% |
| Chennai | 2,980 | 3,110 | -4% | 1,560 | 48% |
| Kolkata | 4,000 | 1,990 | 101% | 1,350 | 196% |
| Total | 64,560 | 36,260 | 78% | 32,530 | 98% |
ANAROCK Research
Price Movements:
Residential property prices across the top cities increased by 1-4% in Q3 2021 compared to Q3 2020, mainly due to an increase in construction cost. Data reveals that the top 7 cities collectively saw average property prices increase by 3% annually – to INR 5,760 per sq. ft. in Q3 2021 from INR 5,600 per sq. ft. in Q3 2020. Bengaluru saw the highest 4% annual rise to INR 5,150 per sq. ft.
