Optimistic But Cautious

Artezio/Unsplash

India's housing market has exhibited a spirited, against-the-traffic U-turn that has left experts bewildered and stakeholders elated. 

Per a Proptiger report, 55,907 new apartments were sold across India’s top-8 cities in Q3, 2021, - an increase of 59% when compared to Q3, 2020. 

On the flip side, new housing supply was up in the last quarter as well, with a big jump of 228%, to 65,211 apartments when compared to Q3, 2020. 

The Tailwinds

Several reasons are behind this buoyancy. All-time low mortgage rates, bottomed-out real estate prices, festive discounts and government incentives are together powering housing sales like seldom seen before. 

Add to that a record-high consumer sentiment and housing demand is spilling over from the metro cities to state capitals and tier 2/3 cities as well. 

The Homebuyer Is Cautious

Emerging from two major lockdowns, job insecurities, and personal losses, the mindset of the home buyer - like consumers in all segments - has been altered. 

Industry veterans observe a paradigm shift in the psyche of the home buyer, who is more cautious and smarter than before - planning strategically before making buying decisions.

Unlike festive seasons earlier, which witnessed many impulse purchases (and sudden cancellations later), buyers are in full control of their purse strings this year.

In One Sip

Housing sales have been strong for the last couple of months and this momentum is likely to continue, signalling that this time around, housing demand is sustainable. 

On cue, some segments of commercial real estate are also resurgent.