Housing sales expected to jump 20-35% in ongoing monsoons: JLL
New Delhi: The housing sales in the country is expected to jump 20-35 percent in the ongoing monsoons as the macroeconomic factors in the rainy season of 2021 is likely to be similar to the same period of 2020, according to a report by JLL.
Even though fuel prices have gone up in the last few months and there is rise in inflation, the RBI has maintained its accommodative stance and has kept the key rates like repo rate unchanged. There is likelihood of moderating inflationary pressure with the sorting out of supply-side disruptions and the home loan rates have also been at their historic low levels since 2020. These factors and other factors support good housing in the coming few months.
Similar to 2020 when the decent levels of rainfall registered in the country, there was headroom for RBI to keep repo rate at record low levels as the inflation was manageable. This had encouraged many people to come forward and purchase properties including houses. Now in rainy season of 2021 also, the home loan interest rates are likely to remain at their historic low levels which will provide ample opportunity for the housing segment of real estate industry to do well.
“The residential real estate sector can expect buoyancy in the sale of residential properties this year in the monsoons and the upcoming festive season, just as last year where there was a 34 percent jump in the corresponding period as compared to the immediately preceding quarter. The jump in sales can be 20-35 percent this year depending on how the pandemic shapes out. If there is a third wave in the next few months, other economic disruptions could impact sales growth negatively which may then hover around the lower range of our expectations,” said Samantak Das, Chief Economist and Head Research & REIS, India, JLL.