Housing sales across the country recorded over 75 per cent growth during the first half of 2021 on a year-on-year basis, as per the CBRE data.
Pune led sales activity with an approximately 26 per cent share, followed by Mumbai (19 per cent). It was closely followed by Hyderabad and Delhi-NCR with 18 per cent and 17 per cent shares respectively.
On a quarter-on-quarter basis housing sales grew by 73 per cent on a q-o-q basis across India’s top seven cities in Q42020, on the back of measured policies announced by the central and state governments, and the RBI coupled with the incentives provided by the developers.
While property prices have grown at a CAGR of 1-6 per cent across high-end segment and around 2-7 per cent across mid-segment since 2010, the per capita GDP grew at a CAGR of 4.0 per cent between 2010 and 2020.
Further, the growth in GDP per capita for the top seven cities was above the national average, with Bangalore reporting the highest CAGR (6.6 per cent). Hence, the income growth overtook the average rise in the price of properties, further contributing to housing affordability.
Moreover, the RBI gradually brought down the repo rate from 6.25 per cent in February 2019 to 4.0 per cent in May 2020, which has led to interest rates on home loans come down to 6.7-6.9 per cent.