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Below is Perspective on the rally by the realty stocks by Sharad Agarwal, Executive Director – Capital Markets, Knight Frank India

“The market saw a smart rebound in Q3 2021 as mobility restrictions were relaxed and businesses started to return to normal. Sales grew by a considerable 92% YoY to 64,010 units during Q3 2021.The enhanced need of the homebuyer to own a home, lower house prices, interest rates at a record low of under 7% and stamp duty cuts in some of the key markets, have been the primary drivers of increased sales traction in 2021. Residential sales in this quarter even exceeded the pre-pandemic 2019 average quarterly sales by 4%, signifying a return to normalcy. Demand momentum was strong across markets in Q3 2021 with all markets reporting a YoY growth in sales. Homebuyers are more inclined to acquire ready or near-ready inventory to minimise completion risk. The markets seem to have factored in the very low likelihood of a complete lockdown as was seen last year, due to the ample availability of the COVID vaccine. Comparatively lower residential prices, attractive interest rates and higher household savings rates over the past year should support housing demand going forward. Homebuyers’ preference for grade A developers and their access to cheaper credit has positioned them well in this recovering market.”

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