Home sales grow 67%, beat pandemic blues

/3 min read

ADVERTISEMENT

99,416 homes were sold in India between January and June this year, and nearly 27% of the sales were during the peak of the second wave of Covid-19 infections.
Home sales grow 67%, beat pandemic blues
 Credits: Narendra Bisht

Despite the morbid potency of the second wave of the Covid-19 pandemic, India’s residential real estate market reported a 67% growth in sales volume in the January to June period of this year, as compared to the same period a year ago. 99,416 residential units were sold across the country’s top eight residential markets of Mumbai, Pune, Bengaluru, NCR, Hyderabad, Chennai, Kolkata, and Ahmedabad in the first half of calendar 2020, property consultancy firm Knight Frank India said in a recent report.

Nearly 27% of the sales came in the April to June quarter, which coincided with the peak of the second wave of the Covid-19 infections. About 27,500 homes were sold in this period, registering a 185% growth year-on-year. “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,” read the report, which is titled “India Real Estate—Residential, January-June 2021”. 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.

Fortune India Latest Edition is Out Now!
India's Top 100 Billionaires

August 2025

As India continues to be the world’s fastest-growing major economy, Fortune India presents its special issue on the nation’s Top 100 Billionaires. Curated in partnership with Waterfield Advisors, this year’s list reflects a slight decline in the number of dollar billionaires—from 185 to 182—even as the entry threshold for the Top 100 rose to ₹24,283 crore, up from ₹22,739 crore last year. From stalwarts like Mukesh Ambani, Gautam Adani, and the Mistry family, who continue to lead the list, to major gainers such as Sunil Mittal and Kumar Mangalam Birla, the issue goes beyond the numbers to explore the resilience, ambition, and strategic foresight that define India’s wealth creators. Read their compelling stories in the latest issue of Fortune India. On stands now.

Read Now

Fortunately, the second wave was less severe on the housing market. The impact of the second wave should be seen as more of a “speed bump”, as year-on-year growth in market volumes remains strong in half-yearly and quarterly terms, points out Shishir Baijal, chairman and managing director, Knight Frank India. A similar point is echoed by Rohit Poddar, managing director, Poddar Housing and Development Ltd. “With an aggressive vaccination drive coupled with limited restrictions on businesses, the second wave had less impact on the real estate sector,” he says.

With the foresight of the first wave, Poddar points out that developers recalibrate their approach towards new launches—developing properties that address the current new age home buyer demand. “Overall, H1 2021 has been fantastic in terms of sales and partial recovery,” he adds.

Interestingly, during the early part of this year, sales volumes were greatly influenced by the two markets—Mumbai and Pune—which Knight Frank India said constituted over 45% of the total sales among the eight markets. Reason: the Maharashtra government’s decision to lower stamp duty rates for a limited period.

“The limited period stamp duty cut which spiked home sales in Mumbai and Pune adequately demonstrates the need for policy level intervention to revive the residential market,” says Baijal. And going by the success of the stamp duty cut in Maharashtra, other states, adds Baijal, “may also consider similar demand stimuli at appropriate times that will not only help sales velocity but also propel economic activity.”

Knight Frank India’s report also concluded that the increase in sales activity has stemmed the fall in residential prices that was seen in 2020. “Price levels in four of the eight markets were observed to remain at the same level or grow marginally YoY in H1 2021. In comparison, just one market had been able to maintain price stability in H2 2020,” read the report.

Mumbai continued to top the charts with an average price realisation of ₹6,750 per square feet, followed by Bengaluru (₹4,920) and Hyderabad (₹4,720). “Barring the affordable segment which was impacted by the uncertainties arising from the economic disruptions of the pandemic, the strength of the market was adequately demonstrated,” says Baijal.

Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.