Despite the country being hit by the third wave of the pandemic, about 78627 residential units have been sold on the quarterly average. In the first quarter of the year, from January-March 2022, the units bought were worth Rs 1 crore and more.
This record is the highest in four years, even though the maximum sale was below Rs 50 lakh. However, this range occupies 41 % of the Q1 sale of 2022.
The findings emerging from the “India Real Estate – Q1 2022” report stated that the real estate industry had made 25% of all sales in Q1 of 2022. And, looking back at the Q1 of 2021 report, it was around 18%. This report was established by residential and commercial property consultant Knight Frank.
The report titled ‘Real Insight Residential – January-March 2022’ covers the quarterly 2022. It includes the sales report of India’s top 8 real estate cities – Chennai, Hyderabad, Ahmedabad, Bangalore, Kolkata, Delhi-National Capital Region, Mumbai Metropolitan Region, and Pune. Among these, Kolkata has seen a 124% jump, and already 5990 units have been sold.
Factors Behind This Trajectory Q1 Sale Report of 2022
According to the realtors and developers, the primary reasons are:
- Reduction of home loan rates
- Attractive discount offers by the sellers and developers
- Incentives offered by the state to reduce the burden
- Reduction in the stamp duty rate
- Various schemes provided by the Government
- Improving employment opportunities
- Rising income slab of the middle-class section
- Lower influence of the third wave on the real estate industry
The Growth in The Residential Market in Kolkata
Kolkata has fared well in terms of growth in the real estate industry. There is a rise of 141% annually in terms of units launched. When compared to overall growth in sales across the top cities, Kolkata comes second to Hyderabad. There has been an elevation of 116% from 1810 units in Q1 of 2021, reaching 3,900 units in Q1 of 2022.
The core factor working as a catalyst for Kolkata’s real estate industry is revising the stamp duty cut and circle rate. The real estate sector has also witnessed the completion of projects at a much faster process, which motivated the buyer-confidence.
Further, people are willing to invest in the real estate industry and try to own a house during the pandemic. The understanding of having security and valued possession has sped up housing sales.
Other external motivations for the developers were digitizing land records for a seamless process, getting every bit of information at a click, and allocating Rs 48000 crore under PM Awas Yojna and PM Gati Shakti. This would further amplify infrastructure supplements and investments in the real estate industry.
Housing sales have also reduced the inventory for the developers. In Q1 of 2017, the stock sold was by 21% from 50540 units, and by the end of Q1 2022, it went to nearly 39920 units.
Further, there is going to be an increase in input cost, so buyers are trying to purchase faster to avoid higher payouts.
According to Knight Frank India, across India, housing prices have accelerated in the range of 1 % to 7 % year-on-year. Overall, at 3619 units, Kolkata gets a 1 % rise in sales of new homes.
Anuj Puri, the chairman of Anarock group, mentioned that Kolkata had performed exceptionally, whereas other markets are witnessing a bull run.
However, financial stress remains in the real estate industry. It can be presumed that a sustained buying activity would gradually increase the rate and help the developers cope with the rise in the price of cement and steel.
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