New launches of homes jumps 33% in Mumbai in Q2

New Delhi: The new launches of homes by realty firms in Mumbai jumped 33 percent in the second quarter of the current financial year as compared to the first quarter of 2021.

It went up from 4,616 houses in Q1 of 2021 to 6,143 homes in Q2 of 2021, according to a study by JLL. A majority of the new launches were in the affordable and also in the mid-segment of houses priced up to Rs 2 crore and accounted for as much as 84 percent of the launches in the second quarter.

The sales, however, remained at the same level in Mumbai in the two quarters. The home sales deals were mostly in the price segment of Rs 50 lakh to Rs 1 crore. This accounted for around 40 percent of the housing sales in the second quarter of 2021.

“The increase in sales presents clear signs of demand and buyer confidence coming back to the market. This has been on the back of historically low home loan interest rates, stagnant residential prices, lucrative payment plans and freebies from developers and government incentives such as the reduction of stamp duty,” Karan Singh Sodi, Regional Managing Director, JLL India.

The housing sales in the top seven cities in April-June quarter of 2021 jumped 83 percent as compared to second of 2020.

“The residential sector displayed improved resilience in Q2 2021 when compared to Q2 2020. There is no denying the fact that the second COVID-19 wave dented the market following a good recovery curve. However, the impact was muted when compared to the same period last year. Most of the changes observed in the sector have been structural in nature and demand for homes is only expected to increase. The RBI is expected to hold policy rates at the existing historically low levels, while prices will remain mostly range bound. The resultant affordable buoyancy will continue to attract fence sitters and serious homebuyers,” said Samantak Das, Chief Economist and Head Research & REIS, India, JLL.