Indian Realty Revival: A Blessing in Disguise

The Indian Realty Market is seeing brighter signs of revival especially in the final quarter of the year.

Indian Realty’s Revival: A Blessing in Disguise

Commencement of the Pandemic & Its Effect

It is evident that the majority of this year has been largely unfavorable for new investments and venture capitals. However, the final December quarter of the realty space is showing signs of revival & recovery so strong that home buyers as well as developers have a lot to look forward to, as far as welcoming the New Year goes. Property hunters have a restored will, now that there are early signs of favorable market conditions. Developers and real estate pioneers are formulating novel policies and schemes which have been proven effective for a leap in sales.

Market Recap

The Pune market, specifically, has outperformed a number of its heavyweight competitors including Bengaluru, Hyderabad and Chennai. In the third quarter, Pune has seen sales of a whopping 9,412 Units. Sales in Thane neared 9,057 units, Bengaluru sales clocked 5,663 while Hyderabad procured 4,295 units. Pune realty space did see a sudden surge in demand and the segment that was on the forefront happened to be the first time buyer. Maximum sales happened in the 600–800 Sq. Ft. Unit segment and in the price bracket of Rs. 35–75 Lakhs.

Ready to move-in properties garnered the most liking and traction by buyers and developers alike and continue to be the hot-favourite in the city. Properties under construction are also witnessing a significant amount of foot-fall and buyers are ready to make a move with properties nearing completion as well. Sales are largely maneuvered by end-users while investors are staying in their decent lanes. However, it is worth mentioning and bringing to highlight that the overall buyers’ market has been witnessing a positive sentiment from the last few weeks. The first-time home buyer is looking up with expectant, gleeful eyes.

Up until now, the market had reached the bottom of the price cycle and this quarter seemed like the most propitious time to acquire real estate.

The Silver Lining

According to a cumulative analysis we did, certain common factors formed the nucleus of what catapulted sales especially in the final quarter. Following points were responsible for spiraling up real estate sales.

  • Pending Demand: Well wishers of investing in property waited for the right time to invest their hard-earned money. This resulted in increased demand which experienced a slowdown owing to the lockdown phase when the virus was in its prime.
  • Lowering of Stamp Duty: There has been a 300-bps reduction in stamp duty, which encouraged buyers to finally take the leap of faith during the quarter. The Maharashtra State Govt. announced this groundbreaking cut in stamp duty.
  • Reduction of Home Loan Rates: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) kept its Repo Rate at 4%. This saw a great hike in property sales.
  • Upgradation Demand: A need to upgrade the current housing conditions was felt by potential buyers and this led to property exploration.
  • Pent Up Demand of Two Quarters: Since times were tough during the first two quarters owing to the depreciation by the virus, the general public took no risk of investing mid-Pandemic. This yielded a greater demand when things started to look up during the final quarter and all the above factors acted as catalysts in channeling the buyers’ urge to invest in property. Pent up demands were smoothened by attractive home loan offers and deals.
  • Direct/Indirect Discounts Offered by Developers: One of the central reasons apart from those mentioned above, property buyers were allured to invest owing to the direct/indirect discounts and schemes introduced by developers.

Some Stats & Inputs by the Experts — Courtesy of Geeta Nair, Financial Express

  • According to Vineet Goyal, joint MD of Kohinoor Group, the overall situation is improving and we are sensing a positive sentiment among the homebuyers, especially, in the first-time homebuyers segment. Additional cost benefits such as reduced stamp duty, affordable interest rate on home loans are the major pull factor, Goyal said. “We have decided to go ahead with our new project launches in the next five to six months, which were kept on hold due to lockdown,” Goyal said.
  • Kalpataru has four on-going projects. Residential sales have progressively improved from August, touching near pre-Covid levels particularly in Pune and MMR, says Munot. “Stamp duty reduction, softening of interest rates, attractive payment schemes and the importance of having a secure life space has catalysed the demand,” says Munot. He believes customer confidence has staged an impressive comeback on the back of reduction of stamp duty in Maharashtra, besides developer schemes, and softening of interest rates. Kalpataru’s sales are almost back to pre-Covid levels and the festive season will serve as an additional demand driver, says Parag Munot, MD of Kalpataru.
  • Shapoorji Pallonji Real Estate (SPRE) says they have beaten the Covid blues and sold 800 apartments at its Joyville project in Pune. SPRE had launched the project having flats in the Rs 37.5 lakh to Rs 78 Lakh range. According to the company, it witnessed high traction from homebuyers and received around 1,500 expressions of interest, Venkatesh Gopalkrishnan, CEO, SPRE, said.
  • Mantra Properties sold 675 units clocking a turnover of Rs 325 crore between August and October 2020. Mantra has sweetened the deal with an offer that saw 175 units being sold in October.
  • Pune saw housing sales worth Rs 8,692 crore in the first nine of months of 2020 as against Rs 17,524 crore back in 2019. The overall units sold in the three quarters this year is 14,200 units.


The points mentioned above dearly leave property buyers & developers with an increased ray of hope; to look forward to more fruitful beginnings and breaking the chain of keeping the buyers’ demands unfulfilled. Many new as well as halted projects will see the light of day, more buyers will be willing to go the extra mile to safeguard a safe space of their own (especially the first-timers) and hopefully, there will be more reinforced schemes and policies for buying real estate. That being said, 2020 leaves us with a sigh of good relief and we might as well refrain from using the word ‘in hindsight’ while talking in retrospect! Let us gear up for a bigger, better and more rewarding 2021.




Accelerating Remote Sales of Realty!

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

What will the housing real estate market look like in 2021?

Top Four Asian Countries for Garment Manufacturing


What is a bull market? — A beginners guide

Section 194N : TDS Imlications and Provisions of Cash Withdrawls in Excess of Rs 20 Lakhs/1 Crore.

Economic and Cultural Backlashes to Globalisation

Philanthropy Needs To Take A Hard Look At Its Colonial Roots

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store


Accelerating Remote Sales of Realty!

More from Medium

Review of All of us are dead.

Ugh, not this twice/year Fussing of Clocks again!

This is Why The Young Generation should Know and Learn About Data Analytic.

A Kiwi’s café fix in London