Residential sales grow by 51% YoY in 2021; records sales of over 232,903 housing in the year: Knight Frank India

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In an extraordinary year marred by the pandemic and lockdowns, the real estate sector showed great resilience in 2021. In their latest report, Knight Frank India note that the Residential Sector had an unprecedented year of growth with sales rising by 51% year on year (YoY) to be recorded at 232,903 units across the top eight cities of the country. New home launches also saw a significant rise of 58% YoY with the addition of 232,382 units in 2021. For the Commercial office segment, the year was a mixed bag. Leasing volumes, recorded at 38.1 million square feet (MSF) though remaining at similar levels as 2020, clearly indicated towards the potential the market has in terms of leasing. Noteworthy is that an overwhelming 68% of the total leasing in 2021 took place in the second half of the year. Bengaluru led the pack with 12 MSF of total leasing during the year. New completions in 2021 for office space was recorded at 39 mn sq ft, higher by 9% over the preceding year.

Knight Frank India today launched the 16th edition of its flagship half-yearly report – India Real Estate: 2021 – which presents a comprehensive analysis of the residential and office market performance across eight major cities for the July-December 2021 (H2 2021) period. Knight Frank India, in its latest report, India Real Estate: H2 2021 cited that 133,487 housing units were sold in second half of the year 2021 cumulatively for the top eight cities. This also showcased a substantial 41% increase Year-on-Year (YoY). Around 69,477 housing sales were reported in Q4 2021. Residential prices stayed steady or recorded marginal growth in seven of eight cities during the year. Homes priced over Rs 50 lakhs constituted around 58% of the overall sales in H2 2021.

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Mumbai (34,382), National Capital Region (23,599) and Bengaluru (23,218) were the leading residential sales performers in H2 2021. Hyderabad and Bengaluru witnessed the highest home sales (in terms of percentage growth) during H2 2021 at 135% and 104% YoY respectively. In the calendar year 2021, Mumbai (62,989), Bengaluru (38,030) and Pune (37,218) led in terms of sales.

On the office market performance, Knight Frank India cited that the top eight cities recorded transactions of 25.9 mn sq ft in July – December 2021, whereas the office completions were recorded at 23.7 mn sq ft in the same period. Six of the eight markets saw transaction volumes grow in YoY terms during H2 2021. With the increasing need for flexibility and a hybrid working environment, co-working/ managed office sector’s transactions share increased to 18% in H2 2021 from 10% in H2 2020. With 8.7 mn sq ft transactions in H2 2021, Bengaluru recorded its highest ever office leasing activity in a half yearly period.