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RESIDENTIAL SALES RECORD 67% YOY INCREASE IN H1 2021 DESPITE
SECOND WAVE; LAUNCHES RISE 71% YOY: KNIGHT FRANK INDIA

* Q2 2021 records 185% YoY rise as the second wave of Covid-19 remained
less disruptive for the sector despite severity

* Sales momentum helps contain fall in residential prices in H1 2021

Mumbai, July 15, 2021: Knight Frank India, a premium international property consultant, in their
latest market assessment report “India Real Estate – Residential, January-June 2021” – recorded
total sales of 99,416 residential units in the first half of 2021 (H1 2021) across top markets, while
new launches in the same period (January – June 2021) were recorded at 103,238 units. As sales
volumes stabilized, especially in the early part of H1 2021, unsold inventory reduced by 1% over the
same period last year. Prices remained mostly contained with a reduction of -1% to -2% Year on Year
(YoY).

A TALE OF TWO CITIES AND THE PANDEMIC – SECOND WAVE LESS SEVERE ON RESIDENTIAL REAL
ESTATE THAN FIRST WAVE

H1 2021 saw a rise of 67% YoY in sales volume with the first half of this period recording the larger
part of the total volumes. During the early part of this year, sales volumes were greatly influenced by
two markets – Mumbai and Pune, that together constituted over 45% of the total sales amongst key
markets. These two markets were given their orbital velocity by the Maharashtra government’s
decision to lower stamp duty rates for a limited period. While residential sales started to show a
resurgence, the momentum got impacted by the second wave of the pandemic starting towards the
end of March 2021. Interestingly, the period of the second wave coincided with that of the first
wave last year which had brought the residential sales market to a screeching halt. Fortunately, the
second wave, despite its extremely morbid potency, was less severe on the residential real estate
market.

A clear outcome of the pandemic was seen in the share of mid-range and high-end property
segments. The share of sales of homes costing less than INR 50 lakhs reduced by around 500 basis
points (BPS) and constituted 42% of all sales in the January-June 2021 period. Homes costing over
INR 1 crore constituted about 19% of all sales, while units at INR 50 lakhs to 1 crore improved by
approximately 400 BPS to be at 39%. The reducing proportion of affordable homes (less than 50
lakhs) is directly related to the challenges thrown up by the pandemic which reduced the economic
confidence of home buyers in that category due to the threat of job loss, reduced income, inching
CPI and other challenges.

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