Shock for New Home Buyers: Concerns in Chennai and Bangalore!

At the onset of the COVID-19 pandemic, the real estate sector was among the most severely affected, with construction and sales both taking a significant hit. Consequently, the central government announced substantial concessions for the real estate sector.

Government Concessions

Several states also announced considerable concessions in stamp duty. These measures, along with increased loans for real estate construction projects, led to overall growth in the sector, providing employment opportunities and stimulating development.

Rising Demand and Prices

However, the demand for new homes has surged among the public, leading to a sharp increase in prices.

Indian Real Estate Market

Due to significant reductions in stamp duty and the trend of working from home, the number of new home buyers has increased. Simultaneously, the prices of construction materials such as cement and steel have risen, causing new home prices in India's eight major cities to increase by 3-7% in 2021.

Report by PropTiger.com

PropTiger.com, operated by Australia's REA Group, released its annual Real Insight Residential 2021 report, revealing that new home sales in India rose by 13%, from 182,639 units last year to 205,936 units in 2021.

Introduction of New Homes

Similarly, the introduction of new homes increased by 75%, from 122,000 units in 2020 to 214,000 units in 2021, according to PropTiger's study. This indicates a full recovery of the Indian real estate sector from the COVID-19 pandemic.

Ahmedabad to Mumbai

In cities like Ahmedabad and Hyderabad, new home prices saw a maximum increase of up to 7% in 2021. Following this, prices rose by 6% in Bangalore, 3% in Pune, and 4% in Mumbai.

Chennai

Finally, home prices in Chennai, Delhi NCR, and Kolkata increased by up to 5%. Notably, new home sales in Chennai grew by 25%.