RESEARCH

India
Real Estate

knightfrank.co.in/research
RESIDENTIAL MARKET - JANUARY - JUNE 2021
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 CONTENTS

ALL INDIA AHMEDABAD BENGALURU

PA G E N O. . . . . . . . . . . . . . . . . . . . . . . . . . 08 PA G E N O. . . . . . . . . . . . . . . . . . . . . . . . . . 14 PA G E N O. . . . . . . . . . . . . . . . . . . . . . . . . . 20

CHENNAI HYDERABAD K O L K ATA

PA G E N O. . . . . . . . . . . . . . . . . . . . . . . . . . 26 PA G E N O. . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 PA G E N O. . . . . . . . . . . . . . . . . . . . . . . . . . 38

MUMBAI NCR PUNE

PA G E N O. . . . . . . . . . . . . . . . . . . . . . . . . . 44 PA G E N O. . . . . . . . . . . . . . . . . . . . . . . . . . 51 PA G E N O. . . . . . . . . . . . . . . . . . . . . . . . . . 58
4 I N D I A R E A L E S TAT E
5 I N D I A R E A L E S TAT E

FOREWORD

S H I S H I R B A I JA L
C H A I R M A N A N D M A N AG I N G D I R E CTO R
K N I G H T F R A N K ( I N D I A ) P V T. LT D.

The intensity of COVID-19 infections has been the primary bellwether for
the economy and the real estate markets across India since the beginning
of 2020. There was a standstill in activities when the pandemic and
consequent nationwide lockdown first hit the nation. However, post the
first wave and with easing of the stringent lockdown, we saw that the
real estate sector made a strong comeback, particularly in the residential
segment.

The pandemic second wave this year was more severe than the first one.
Unfortunately, we lost many human lives. However, with better awareness
and understanding of the virus, mass vaccination drives and preparedness
to work with restricted mobility, businesses and households alike saw a
relatively better economic momentum this time. Seen in this light, the
severe second wave, at worst, served as a temporary blip.

During our review period, the residential segment performed remarkably

well. Sales across the top 8 cities grew by 185% YoY in Q2 2021 and by 67%
YoY in H1 2021. The improved consumer perception of owning a house
was supported by low home mortgage rate, competitive house prices and
developer driven flexible payment schemes. In markets like Mumbai,
Pune and Bengaluru, government intervention through stamp duty
cuts also served as a catalyst to reignite latent demand. Going forward,
with rapid vaccination progress and economic aspirations to return to
normality, we are likely to see improved activity levels once important
vaccination milestones are achieved.

I am glad to share the 15th edition of our flagship half-yearly report ‘India
Real Estate’. The report captures key developments in the residential
sector across top 8 cities in the country. I hope you find that this edition
provides an encouraging connect with the market. Wishing you and your
loved ones a safe and healthy life.
6 I N D I A R E A L E S TAT E

RA JA N I S I N HA
CHIEF ECONOMIST &
N AT I O N A L D I R E C T O R
RESEARCH

PICK-UP IN CONSUMPTION:
KEY TO ECONOMIC REVIVAL
The Indian economy had started to recover from the first wave of pandemic before it got
hit by a second wave in March 2021. The lockdown imposed during the second wave was
regional in nature and less restrictive. Hence, the immediate economic impact has been
relatively less severe. However, the damage to health and life in the second wave has been
brutal, resulting in deeper scarring of consumer sentiments.
7 I N D I A R E A L E S TAT E

With the second wave of infection on a downward trajectory, The pick-up in India’s exports, in the midst of these challenges, is
economic activity is again gathering momentum. The ongoing a silver lining. Exports in April-May 2021 have recorded a healthy
immunization is also providing comfort in the current opening up growth of 12.6% even when compared to the corresponding period of
process. However, it is to be noted that so far, only around 5% of 2019. As economic growth in developed economies gain momentum,
India’s population has been fully vaccinated as against almost 50% of India’s exports are likely to benefit from the external demand. Strong
the population fully vaccinated in developed economies like US and FDI inflows is another positive for the economy, as reflected by FDI
UK. Moreover, even though the economy has started to re-open, there inflows of USD 82 billion in FY 2021. India currently has a comfortable
is concern around a third wave of infection. forex reserve of over USD 608 billion which reduces the vulnerability
of the Indian currency, even if developed economies like the US move
The Indian economy is projected to grow by 9.5% in FY 2022 as per
away from an accommodative monetary policy stance.
RBI. This high number comes on the low base of the previous year
when the economy had contracted by 7.3% due to the stringent As the Indian economy is opening up in phases, there is growing hope
national lockdown. Even with 9.5% growth in FY 2022, the economy that economic momentum will gather pace. India’s growth trajectory
would only be recording a minor uptick from the FY 2020 level of will depend on the COVID situation and whether we get hit by further
GDP. The risk is that if there are further waves of infection which waves of the infection. The pace of vaccination will play a very critical
are severe, the GDP growth could be lower than this projected role to avoid severe waves of infection in future. India has seen
number. India’s economic recovery is likely to be K shaped in nature vaccination of around 4 million doses per day in June 2021 and this
with sectors like pharmaceutical and IT/ITeS recording healthy daily vaccination number needs to rise to over 10 million doses per
growth, manufacturing sectors picking up, while the touch-based day for us to achieve full vaccination of the adult population by year
Service sector will feel the pain for a longer period of time. The large end. With the Government working towards increasing vaccination
unorganised sector and MSME sector of India, which is impacted by supply, India’s growth story in this pandemic year will be contingent
lockdowns, will have a more difficult recovery path. on the speed of vaccination going forward.

The critical aspect for India’s economic recovery will be increased

consumption spending, as Private Final Consumption Expenditure
contributes 56% to India’s GDP. Consumer sentiments though have
been severely impacted by the pandemic, more so by the second wave
that has been debilitating to human life. The second wave has also
had a severe impact on the rural area compared to the previous wave.
As per RBI’s Consumer Confidence survey, the current situation index
(CSI) in May 2021 dropped to a low of 48.5, lower than that seen after
the first wave of pandemic. In the current situation, what is needed is
direct demand boosting stimulus measures from the government to

5%
aid consumption revival. Any kind of tax cut even for a limited period
of time, will help provide the much-needed boost to consumption
spending as was seen with the stamp duty cut in Maharashtra. This
cut in stamp duty rates, effective from September 2020 to March
2021, not just helped boost residential sales in Maharashtra but was
of India’s population has
also effective in increasing the state government’s revenue collection been fully vaccinated

from registration.

Another aspect of concern for the Indian economy is the rising

9.5 %
trend of inflation. The CPI inflation in India breached RBI’s upper
band of 6% in May 2021, while WPI hit a high of 12.9%. Commodity
prices, specifically metal and crude oil, have been rising globally as
economies like US and China have started to pick up. While RBI has
kept the monetary policy accommodative and the interest rates low,
India’s projected GDP
a sustained increase in inflation while growth remains weak will
growth for FY22
make RBI’s task more challenging going forward.
8 I N D I A R E A L E S TAT E - I N D I A

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9 I N D I A R E A L E S TAT E - I N D I A

Expert Take

The residential market has been tested by a resurgent

pandemic and yet maintained the growth momentum
in sales and launches seen at the end of 2020. Increasing
vaccine availability, improved consumer perception for
home ownership, low home-loan rates and competitive
house prices have brought home-buyers back to the
market.
RESIDENTIAL
MARKET

YA S H W I N B A N G E R A

INDIA MARKET SUMMARY

PARAMETER 2020 CHANGE (YOY) H1 2020 H1 2021 CHANGE (YOY)

Launches
146,628 -34% 60,489 103,238 71%
(housing units)

Sales
154,534 -37% 59,538 99,416 67%
(housing units)

Unsold inventory
437,924 -2% 446,787 441,742 -1%
(housing units)

Quarters-to-sell (QTS) 10.1 - 10.1 10.9 -

Age of unsold inventory

16.7 - 16.4 16.9 -
(in quarters)

Note – 1 square metre (sq m) = 10.764 square feet (sq ft)

Source: Knight Frank Research
10 I N D I A R E A L E S TAT E - I N D I A

• The scale of COVID-19 infections has been the primary bellwether

QUARTERLY LAUNCHES AND SALES TREND for the economy and the real estate markets across India since
the beginning of 2020. The first wave of infections that struck the
Launches (Units) Sales (Units)
country in Q2 2020 caused a near shutdown in business activity
80000
and a consequent crash in residential market volumes during the
period. The gradual resumption of economic activity and increasing

75000
availability of the vaccine sparked market traction in the second
half of 2020 and this momentum carried over to Q1 2021. However,
the second wave of COVID-19 infections stalled the momentum as
70000 the lockdown imposed to control the spread of the virus impacted
homebuyer and development activity alike. Q2 2021 thus saw
a sequential drop of 62% and 43% in the volume of sales and
65000
launches respectively during the period.

• During H1 2021, however, an increased understanding of the

60000 pandemic and focus on vaccinations limited the adverse impact on
the economy and the residential market. The impact on residential
market traction has been seen more as a speed-bump rather than
55000
a major obstruction, especially as sales volumes have shown a
strong growth of 67% YoY to 99,416 units. Volumes during H1 2021

50000 grew 5% compared to H2 2020, and was not impacted by the

resurging pandemic.

• Human mobility became extremely restricted and people stayed

45000
indoors for the better part of the past 15 months, which vastly
Number of units

increased the perceived value of one’s home in the overall scheme

40000 of things. The increased need of the homebuyer to own a home,
lower house prices, low interest rates and stamp duty cuts in some
key markets, were the primary drivers of increased sales traction
35000
during H1 2021.

• Developers also upped the ante by launching new projects to

30000 capitalize on the improving sentiment despite a significant rise in
the cost of input material such as cement and steel. Notably, there
was comparatively lesser impact on development activity during
25000
the second wave as the exodus of labour was better managed with
developers committing to arrange their accommodation on-site.
As many as 103,238 units were launched during H1 2021, a 71%
20000
increase YoY. It is also noteworthy that the launch volumes in a
pandemic impacted period like H1 2021 was 20% higher than the
15000 relatively unaffected H2 2020 period.

• Mumbai and Pune accounted for 46% of the sales during H1

10000 2021 as the stamp duty cut in Maharashtra bolstered the sales
volumes in these cities till March 2021. The impact of this measure
can be gauged from the fact that the share of the two cities had
5000 averaged much lower at 38% in the 2010-2019 period. Karnataka
was the only other state to have offered a stamp duty cut, albeit

0
with a relatively limited scope and in comparison, the stamp duty
cut in Karnataka did not have the same impact. Its share of sales
Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Q2 2021

during H1 2021 at 15% remained marginally lower than its long term
Source: Knight Frank Research average of 16%.
11 I N D I A R E A L E S TAT E - I N D I A

• Hyderabad showed the most growth in H1 2021 in sales as well as

launches which grew 150% and 278% YoY respectively. While this AFFORDABLE MARKET ACTIVITY (UP TO INR
can be attributed in part to a pronounced base effect, it is also due 5 MILLION SEGMENT)
to the fact that the IT industry, which is the major employer in the
80,000
city, was not impacted by the pandemic. With no threat of income
disruption, affordable prices and low home loan rates, the city
posted its highest ever home sales in a half-yearly period during H1
70,000
2021.

• The threat of income disruption was keenly felt in the lower income
demographic across the country and this was reflected in their 60,000
share of home sales in the <INR 5 mn ticket-size, which reduced
from 47% in H1 2020 to 42% in H1 2021. While sales in this
category grew 50% YoY, they have underperformed compared to 50,000

the overall market which grew at 67% YoY. The strongest growth

Number of units
was observed in the INR 5-10 mn ticket size that grew 87% YoY
40,000
while sales in ticket-size above INR 10 mn grew by a strong 79%
YoY.

• The significant increase in sales activity also stemmed the fall in 30,000
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 was able 20,000

to maintain price stability in H2 2020. While developers offered

flexible payment schemes to push sales across markets, the
10,000
incidence of direct discounts was markedly lower during H1 2021.

• The unsold inventory level dipped slightly, by 1% YoY since H1 2020,

to 441,742 units in H1 2021. In contrast, the quarters-to-sell (QTS) 0
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021
moved up marginally to 10.9 quarters in H1 2021 as compared
to 10.1 quarters in H1 2020. QTS shows the number of quarters
Source: Knight Frank Research
required to exhaust the unsold inventory and is calculated by
dividing the existing unsold inventory by average sales of the eight
trailing quarters from the analysis period to avoid seasonal volatility.
The increase in QTS in H1 2021 is mainly because the calculation
for this period factored in two of the worst pandemic impacted
quarters (Q2 2021 and Q2 2020) in calculating its average sales
TICKET SIZE SPLIT COMPARISON OF SALES
rate. If the QTS for H1 2021 was calculated using the eight trailing
DURING H1 2020 AND H1 2021
quarters after excluding the two severely affected quarters (Q2
2020 and Q2 2021), the QTS level would reduce to 7.6 quarters,
H1 2020 H1 2021
significantly lesser than the 8.9 QTS even in the pre-pandemic
period of H2 2019.

• The residential market has proved resilient during H1 2021 despite

18 % >INR 10mn 19 % >INR 10mn

35 39
being impacted by a resurgent pandemic. The industry continues
to consolidate with residential developments steadily shifting into % INR 5-10 mn % INR 5-10 mn

the hands of stronger developers who have been able to weather

47 42
the economic storm created by the pandemic. Homebuyers have
displayed a strong preference for ready inventory to hedge any % <INR 5mn % <INR 5mn

execution risk by developers but have been more willing to commit

to under-construction properties with a Grade A developer at the
Source: Knight Frank Research
helm.
12 I N D I A R E A L E S TAT E - I N D I A

SALES LAUNCHES
CITY
H1 2021 (YOY CHANGE) 2020 (YOY CHANGE) H1 2021 (YOY CHANGE) 2020 (YOY CHANGE)

28,607 (53%) 48,688 (-20%) 35,872 (53%) 50,303 (-37%)

MUMBAI

11,474 (111%) 21,234 (-50%) 2,943 (107%) 9,824 (-57%)

NCR

14,812 (22%) 23,579 (-51%) 13,389 (24%) 19,929 (-41%)

BENGALURU

17,474 (74%) 26,919 (-18%) 20,477 (52%) 34,992 (-22%)

PUNE

5,751 (93%) 8,654 (-49%) 5,424 (54%) 7,234 (-37%)

CHENNAI

11,974 (150%) 10,042 (-38%) 16,712 (278%) 12,826 (-5%)

HYDERABAD

5,115 (74%) 8,912 (-21%) 2,195 (156%) 4,148 (-27%)

KOLKATA

4,208 (67%) 6,506 (-61%) 6,226 (137%) 7,372 (-36%)

AHMEDABAD

99,416 (67%) 154,534 (-37%) 103,238 (71%) 146,628 (-34%)

ALL INDIA
Source: Knight Frank Research
13 I N D I A R E A L E S TAT E - I N D I A

RESIDENTIAL PRICE MOVEMENT

PRICE IN H1 2021 IN
LOCATION 12 MONTH CHANGE (%) 6 MONTH CHANGE (%)
INR/SQ M (INR/SQ FT)

MMR 72,657 (6,750) -2% -1%

NCR 44,832 (4,165) 0% -2%

BENGALURU 52,959 (4,920) -1% 0%

PUNE 43,164 (4,010) -2% 0%

CHENNAI 43,619 (4,052) -2% 7%

HYDERABAD 50,803 (4,720) 1% 5%

KOLKATA 34,595 (3,214) 3% 0%

AHMEDABAD 30,161 (2,802) 0% 0%

Source: Knight Frank Research

MARKET HEALTH

UNSOLD INVENTORY (HOUSING QUARTERS-TO-SELL AGE OF INVENTORY

MICRO-MARKET
UNITS) (YOY CHANGE) (QTS) (IN QUARTERS)

MMR 154,181 (3%) 11.8 15.6

NCR 102,143 (-13%) 14.7 23.9

BENGALURU 73,341 (-5%) 10.1 15.4

PUNE 50,545 (18%) 6.8 13.2

CHENNAI 11,862 (-16%) 4.2 16.5

HYDERABAD 11,918 (195%) 3.2 9.1

KOLKATA 25,240 (-18%) 9.8 15.8

AHMEDABAD 12,512 (285%) 5.2 9.4

Source: Knight Frank Research

14 I N D I A R E A L E S TAT E - A H M E D A B A D

A
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15 I N D I A R E A L E S TAT E - A H M E D A B A D

Expert Take

The momentum gathered till the beginning of this year

hit a speed-bump in Q2 2021 as the second wave of the
pandemic impacted market traction. Despite this hurdle,
key parameters such as sales, launches and prices remained
resilient in H1 2021.

RESIDENTIAL
MARKET

YA S H W I N B A N G E R A

AHMEDABAD MARKET SUMMARY

PARAMETER 2020 CHANGE (YOY) H1 2020 H1 2021 CHANGE (YOY)

Launches
7,372 -36% 2,627 6,226 137%
(housing units)

Sales
6,506 -61% 2,520 4,208 67%
(housing units)

Price INR 30,215/ sq m INR 30,085/sq m INR 30,161/sq m

-3.1% 0.3%
(weighted average) (INR 2,807/sq ft) (INR 2,795/sq ft) (INR 2,802/sq ft)

Unsold inventory
10,494 9% 9,744 12,152 28%
(housing units)

Quarters-to-sell (QTS) 3.6 - 2.9 5.2 -

Age of unsold inventory

10.1 - 9.9 9.4 -
(in quarters)

Note – 1 square metre (sq m) = 10.764 square feet (sq ft)

Source: Knight Frank Research
16 I N D I A R E A L E S TAT E - A H M E D A B A D

QUARTERLY LAUNCHES AND SALES TREND

Launches (Units) Sales (Units)

7,000

6,000

5,000
Number of units

4,000

3,000

2,000

1,000

0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Source: Knight Frank Research

• The gradual resumption of business activity and increasing • North Ahmedabad saw the most homebuyer activity, accounting
availability of the vaccine had spurred market traction in the second for 32% of sales in H1 2021. Locations such as Nana Chiloda, New
half of 2020 and this momentum carried over into Q1 2021 as Ranip, Gota and Chandkheda, which have a high concentration
well. However, the second wave of COVID-19 infections stalled the of affordable projects, fared well in terms of attracting end users
momentum as the lockdown imposed to control the spread of the largely comprising the blue-collared working population. Western
virus adversely impacted the homebuyer and development activity micro-markets such as South Bopal, Shela, Shilaj and Thaltej and
alike. Q2 2021 thus saw a sequential drop of 62% and 43% in the Science City Road accounted for 25% of the sales due to rapidly
volume of sales and launches respectively during the period. developing social infrastructure and improved road connectivity.

• Despite the slump in Q2 2021, H1 2021 still experienced a • The ticket-size split of sales remained largely unchanged in H1
YoY growth in sales as well as launches, primarily due to 2021 as compared to H1 2020. 92% of the sales occurred in ticket
the pronounced base effect of a very weak H1 2020 and the sizes under INR 10 mn with the < INR 5 mn ticket size accounting
comparatively substantial volumes seen in Q1 2021. Also, even for 70% of the sales.
as the scale of infections was more than four times the numbers
• The rise in the cost of steel, cement and labour raised construction
seen during the first wave, the impact on the economy was not as
costs by an estimated 8-12%. Developers who tried to pass on
pronounced. A much better understanding of the infection, focus
this inflation to homebuyers had more success in the premium
on vaccinations and better execution of remote working operations
segment of over INR 10 mn and to some extent in the <INR 2.5 mn
as well as on-site labour operations helped keep the economic
ticket size where margins are already very thin. Marginal increases
environment from spiraling out of control. Sales and launches grew
in average prices of affordable units were seen in the north and
by 67% and 137% YoY respectively, during H1 2021.
and east micro-markets. Overall, prices have remained steady as
• The inevitable exodus of labour at the onset of the second wave compared to H1 2020 in the Ahmedabad market to keep buyers
was much better managed compared to the previous year with interested.
developers committing to manage workers’ stay on site. This
• Flexible payment schemes and spot discounts to close deals were
enabled development activity to resume towards the end of
offered to prospective buyers with renewed vigour towards the
Q2 2021 as the lockdown was eased. Development activity and
end of H1 2021 as the market began to resume normal operations.
project launches could thus continue in some limited capacity with
The phenomenon of increased interest in plotted developments
continued sales efforts via digital media which kept the needle
towards the periphery of the city continued in the current period
moving in terms of sales even during Q2 2021.
as well, as the need for more open living spaces was of prime
consideration for a section of buyers.
17 I N D I A R E A L E S TAT E - A H M E D A B A D

MICRO-MARKET CLASSIFICATION

Micro market Locations

Central Paldi, Vasna, Navrangpura, Maninagar, Dudheshwar, Ambawadi

East Naroda, Vastral, Nikol, Kathwada Road, Odhav
North Gota, New Ranip, Tragad, Chandkheda, Motera
South Narol, Vatva, Vinzol, Hathijan
West SG Highway, Prahlad Nagar, Bopal, Thaltej, Science City Road

Source: Knight Frank Research

MICRO-MARKET SPLIT OF NEW LAUNCHES IN H1 2020 AND H1 2021

12% 11%

30%
14%
34%
18% Micro-Market H1 2020 H1 2021
H1 2020 H1 2021 ■ Central 12% 11%
■ East 18% 14%
4% ■ North 36% 22%
22% ■ South 4% 18%
36% 18% ■ West 30% 34%

Source: Knight Frank Research

MICRO-MARKET SPLIT OF SALES IN H1 2020 AND H1 2021

9%
15%
25%
30%
18%
Micro-Market H1 2020 H1 2021
H1 2020 H1 2021 19% ■ Central 9% 15%
■ East 18% 19%
9%
■ North 36% 32%
7%
■ South 7% 9%
36% ■ West 30% 25%
32%

Source: Knight Frank Research

18 I N D I A R E A L E S TAT E - A H M E D A B A D

AHMEDABAD TICKET SIZE SPLIT COMPARISON

OF SALES DURING H1 2020 AND H1 2021

H1 2020 H1 2021

8 8

67%
% >INR 10mn % >INR 10mn

21 % INR 5-10 mn
22 % INR 5-10 mn

71 % <INR 5mn 70 % <INR 5mn

YoY increase in sales during H1 2021

Source: Knight Frank Research

AHMEDABAD HALF-YEARLY WEIGHTED

AVERAGE RESIDENTIAL PRICE MOVEMENT

31,400

31,200

The ticket-size split of sales 31,000

remained largely unchanged

30,800
INR/sq m

in H1 2021 as compared to H1
2020. 92% of the sales occurred 30,600

in ticket sizes under INR 10

30,400
mn with the < INR 5 mn ticket
size accounting for 70% of the 30,200

sales.
30,000

29,800

29,600

29,400
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021

Source: Knight Frank Research

19 I N D I A R E A L E S TAT E - A H M E D A B A D

RESIDENTIAL PRICE MOVEMENT IN SELECT LOCATIONS

Price range in H2 2021 6 month

Micro Market Location 12 month Change
in INR/sq m (INR/sq ft) Change

63,500-68,900 (5,900-6,400)
Ambavadi 1% 0%
Central
Navrangapur 53,800-64,600 (5,000-6,000) -2% -1%

Nikol 16,100-30,700 (1,500-2,850) 2% 1%

East
Vastral 19,400-26,900 (1,800-2,500) 3% 2%

Chandkheda 25,800-36,600 (2,400-3,400) 2% 1%

North
Motera 32,300-45,200 (3,000-4,200) 1% 0%

Aslali Circle 12,900-16,100 (1,200-1,500) -1% 0%

South
Vatwa 10,800-21,500 (1,000-2,000) -2% -1%

Bopal 34,400-36,600 (3,200-3,400) 2% 1%

West
Prahlad Nagar 59,200-61,300 (5,500-5,700) 2% 0%

Source: Knight Frank Research

MICRO-MARKET HEALTH

Unsold Inventory (housing

Micro-market Quarters-to-sell (QTS) Age of Inventory (in quarters)
units) (YoY Change)

Central 2,028 (3%) 6.4 8.9

East 1,699 (3%) 3.3 11.1

North 1,314 (42%) 1.7 7.6

South 2,760 (38%) 15.9 12.1

West 4,683 (48%) 7.6 8.4

Source: Knight Frank Research

20 I N D I A R E A L E S TAT E - B E N G A L U R U

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21 I N D I A R E A L E S TAT E - B E N G A L U R U

Expert Take

The second wave of the pandemic in Q2 2021 at best

served as a temporary blip for the Bengaluru residential
market. Being a beneficiary of a robust technology sector
on the demand side and institutional development
capabilities on the supply side, Bengaluru residential
market demonstrated resilience on key parameters of sales
volume and price.
RESIDENTIAL
MARKET

V I V E K R AT H I

BENGALURU MARKET SUMMARY

PARAMETER 2020 CHANGE (YOY) H1 2020 H1 2021 CHANGE (YOY)

Launches
19,929 -41% 10,806 13,389 24%
(housing units)

Sales
23,579 -51% 12,177 14,812 22%
(housing units)

Price INR 53,120/ sq m INR 53,605/sq m INR 52,959/sq m

-0.8% -1.2%
(weighted average) (INR 4,935/sq ft) (INR 4,980/sq ft) (INR 4,920/sq ft)

Unsold inventory
74,764 -5% 77,043 73,341 -5%
(housing units)

Quarters-to-sell (QTS) 8.3 - 7.9 10.1 -

Age of unsold inventory

15 - 14.3 15.4 -
(in quarters)

Note – 1 square metre (sq m) = 10.764 square feet (sq ft)

Source: Knight Frank Research
22 I N D I A R E A L E S TAT E - B E N G A L U R U

QUARTERLY LAUNCHES AND SALES TREND

Launches (Units) Sales (Units)

16,000

14,000

12,000
Number of units

10,000

8,000

6,000

4,000

2,000

0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Source: Knight Frank Research

• After the March 2021 quarter when many large developers The relatively expensive Central Bengaluru market saw improved
reported their best ever quarterly sales, June 2021 quarter activity, which however, forms only a small part of the city sales at
was adversely impacted by the second wave of COVID-19 and less than 1% share.
consequent lockdown. As a result, on a sequential basis, both
• Bengaluru is amongst the very few large markets, besides Mumbai
sales and launches fell in the June 2021 quarter by 55% and 21%
and Pune, to see a government intervention on stamp duty cut to
respectively.
boost residential sales. However, effective 1st April 2021, even with
• However, given the strong Q1 2021, even with the pandemic the expanded scale of this benefit, which has now increased from
influenced slump in Q2 2021, H1 2021 recorded sales of 14,812 INR 3.5 mn to INR 4.5 mn value houses, there is a marginal impact
units – a growth of 22% YoY. Compared to the first wave and the on sales in the under INR 4.5 mn segment. In H1 2021, the low end
national lockdown last year, though loss of life has been severe in segment of under INR 5 mn contributed 33% to sales, the mid
this second wave, the economic impact has been moderate. With segment of INR 5-10 mn contributed 48% and the high segment of
awareness of coronavirus, improving vaccination drive and digital over INR 10 mn contributed 19%.
preparedness, both developers and consumers were seen to be
• Despite the turbulence created by the pandemic second wave,
better prepared compared to the standstill seen during same
price levels across most markets have been maintained in Q2
period last year.
2021. In H1 2021, the weighted average price level in the city stood
• With the pandemic experience, the residential segment has at INR 52,959/sq m (INR 4,920/sq ft), down by a marginal 1.2%
benefitted from increased consumer appreciation of owning a YoY. However, as prospective consumers grappled with COVID-19
house. As a consequence, market activity continued in the second second wave exigencies, a re-introduction of flexible payment
wave impacted quarter of June 2021, although at a restrained schemes was observed during this period to push sales.
level. Developers went ahead with scheduled project launches
and consumers participated too, shedding the hesitation of digital
engagement that was seen during last year.

• South Bengaluru has been the residential micro-market most

favored by consumers, contributing 37% to sales. This was followed
by the East Bengaluru market which garnered 33% of the sales.
23 I N D I A R E A L E S TAT E - B E N G A L U R U

MICRO-MARKET CLASSIFICATION

Micro market Locations

Central MG Road, Lavelle Road, Langford Town, Vittal Mallya Road, Richmond Road
East Whitefield, Old Airport Road, Old Madras Road, KR Puram, Marathahalli
West Malleshwaram, Rajajinagar, Yeswanthpur, Tumkur Road, Vijayanagar
North Hebbal, Bellary Road, Hennur, Jakkur, Yelahanka, Banaswadi
South Koramangala, Sarjapur Road, Jayanagar, JP Nagar, HSR Layout, Kanakapura Road, Bannerghatta Road

Source: Knight Frank Research

MICRO-MARKET SPLIT OF NEW LAUNCHES IN H1 2020 AND H1 2021

3% <1%
3%

32%
38% Micro-Market H1 2020 H1 2021
42%
H1 2020 35% H1 2021 ■ Central 0% <1%
■ East 38% 32%
■ North 17% 29%
■ South 42% 35%
29% ■ West 3% 3%
17%

Source: Knight Frank Research

MICRO-MARKET SPLIT OF SALES IN H1 2020 AND H1 2021

<1% <1%

7%
7%

29% 33%

Micro-Market H1 2020 H1 2021

H1 2020 37% H1 2021 ■ Central <1% <1%
■ East 29% 33%
45%
■ North 18% 22%

18% ■ South 45% 37%

22% ■ West 7% 7%

Source: Knight Frank Research

24 I N D I A R E A L E S TAT E - B E N G A L U R U

BENGALURU TICKET SIZE SPLIT COMPARISON BENGALURU HALF-YEARLY WEIGHTED

OF SALES DURING H1 2020 AND H1 2021 AVERAGE RESIDENTIAL PRICE MOVEMENT

H1 2020 H1 2021 55,000

17 % >INR 10mn 19 % >INR 10mn

54,000

52 48
53,000

% INR 5-10 mn % INR 5-10 mn

52,000

31 33

INR/sq m
% <INR 5mn % <INR 5mn 51,000

50,000
Source: Knight Frank Research

49,000

48,000

22%
47,000

46,000

45,000
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021
YoY increase in sales in H1 2021
Source: Knight Frank Research

RESIDENTIAL PRICE MOVEMENT IN SELECT LOCATIONS

Price range in H2 2020

Micro Market Location 12 month Change 6 month Change
in INR/sq m (INR/sq ft)

Langford Town 161,460 - 226,044 (15,000 - 21,000) -1% 0%

Central
Lavelle Road 226,044 - 322,920 (21,000 - 30,000) 0% 0%

KR Puram 40,903 - 69,966 (3,800 - 6,500) -1% 0%

East Whitefield 48,438 - 78,577 (4,500 - 7,300 ) -1% -1%

Marathahalli 45,208 - 75,348 (4,200 - 7,000) 0% -1%

25 I N D I A R E A L E S TAT E - B E N G A L U R U

Hebbal 59,202 - 107,640 (5,500 - 10,000) 1% 0%

Yelahanka 43,056 - 75,348 (4,000 - 7,000) -1% -1%

North
Thanisandra 43,056 - 86,112 (4,000 - 8,000) -1% 0%

Hennur 43,056 - 86,112 (4,000 - 8,000) 0% 0%

Sarjapur Road 43,056 -80,730 (4,000 -7,500) 0% 0%

Kanakpura Road 43,056 - 71,042 (4,000 - 6,600) -2% -1%

South
Electronic City 37,674 - 59,202 (3,500 -5,500) -2% -1%

Bannerghatta Road 37,674 - 75,348 (3,500 -7,000) -1% -1%

Yeshwantpur 64,584 - 107,640 (6,000 - 10,000) -1% 0%

Malleswaram 86,112 - 150,696 (8,000 - 14,000) -2% -1%

West
Rajajinagar 75,348 - 161,460 (7,000 - 15,000) 0% 0%

Tumkur Road 32,292 - 64,584 (3,000 - 6,000) 0% 0%

Source: Knight Frank Research

MICRO-MARKET HEALTH

Unsold Inventory (housing

Micro-market Quarters-to-sell (QTS) Age of Inventory (in quarters)
units) (YoY Change)

Central 209 (-16%) 11.1 19.1

East 16,368 (-8%) 7.6 12.9

North 17,559 (-2%) 11.0 16.3

South 32,426 (-2%) 11.1 16.0

West 6,779 (-13%) 11.5 16.8

Source: Knight Frank Research

26 I N D I A R E A L E S TAT E - C H E N N A I

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27 I N D I A R E A L E S TAT E - C H E N N A I

Expert Take

The Chennai residential market witnessed a slow demand

and supply momentum during H1 2021. South Chennai
accounted for the highest share in new launches as well as
sales during this period. The affordable housing segment,
especially the INR 2.5-5 mn ticket-size category, continued
to drive residential demand in Chennai.

RESIDENTIAL
MARKET

P R A D N YA N E R K A R

CHENNAI MARKET SUMMARY

PARAMETER 2020 CHANGE (YOY) H1 2020 H1 2021 CHANGE (YOY)

Launches
7,234 -37% 3,520 5,424 54%
(housing units)

Sales
8,654 -49% 2,981 5,751 93%
(housing units)

Price INR 40,843/sq m INR 44,509/sq m INR 43,619/sq m

-9% -2%
(weighted average) (INR 3,794/sq ft) (INR 4,135/sq ft) (INR 4,052/sq ft)

Unsold inventory
12,190 -10% 14,149 11,862 -16%
(housing units)

Quarters-to-sell (QTS) 3.8 - 4.1 4.2 -

Age of unsold inventory

15.5 - 16.8 16.5 -
(in quarters)

Note – 1 square metre (sq m) = 10.764 square feet (sq ft)

Source: Knight Frank Research
28 I N D I A R E A L E S TAT E - C H E N N A I

QUARTERLY LAUNCHES AND SALES TREND

Launches (Units) Sales (Units)

6,000

5,000

4,000
Number of units

3,000

2,000

1,000

0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Source: Knight Frank Research

Note:
COVID-19 disruptions in market activity led to a standstill in sales activity at residential project sites and registration offices during Q2 2020. In some cases, customers paid nominal
amounts on application for housing units, which could be identified and allotted later. Such instances of transactions with limited details on booking have not been considered in the
Q2 2020 numbers. With more details awaited on certainty of such transactions, the recording has been deferred and captured during the next quarter.

• The Chennai residential market witnessed a slow demand and • Unsold inventory numbers dropped by 16% YoY in H1 2021 on
supply momentum during H1 2021 on account of the lull in the account of the high demand in the ready-to-move-in segment.
second quarter. However, the market performed better this half
• QTS levels inched up to 4.2 in H1 2021 from 3.8 in H2 2020 largely
year compared to the same period last year owing to the low base
on account of the new launches during this period. The lull in
of the second quarter of 2020.
sales velocity during Q2 2020 and Q2 2021 due to the pandemic-
• New project launches grew by 54% YoY in H1 2021. West and south induced lockdowns also contributed to this rise in QTS in H1 2021.
Chennai together accounted for 98% of the total H1 2021 launched QTS is the number of quarters required to exhaust the existing
units. In terms of ticket-size split, developers continued to focus unsold inventory in the market. The existing unsold inventory
on the affordable housing segment, especially in the INR 2.5-5 mn is divided by the average sales velocity of the preceding eight
category. quarters to arrive at the QTS number for the current quarter.

• Residential sales jumped up by 93% YoY in H1 2021. South Chennai

accounted for the largest share, 56% of the total units sold in H1
2021. The INR 2.5-5 mn and the INR 5-7.5 mn ticket-size categories
emerged as popular choices during this period. The demand for
spacious homes and second homes picked up this period as
pandemic induced the work from home and the digital studying
trends.

• The city-level average residential prices recorded a 2% YoY dip in

H1 2021. However, sequentially the prices have moved up 7% HoH,
from INR 40,843 / sq m (INR 3,794 / sq ft) in H2 2020 to INR 43,619
/ sq m (INR 4,052 / sq ft) in H1 2021.
29 I N D I A R E A L E S TAT E - C H E N N A I

MICRO-MARKET CLASSIFICATION

Micro market Locations

Central Chennai T. Nagar, Alandur, Nungambakkam, Kodambakkam, Kilpauk

West Chennai Porur, Ambattur, Mogappair, Iyyappanthangal, Sriperumbudur
South Chennai Perumbakkam, Chrompet, Sholinganallur, Guduvancheri, Kelambakkam
North Chennai Tondiarpet, Kolathur, Madhavaram, Perambur

Source: Knight Frank Research

MICRO-MARKET SPLIT OF NEW LAUNCHES IN H1 2020 AND H1 2021

1% 1%

Micro-Market H1 2020 H1 2021

44%
H1 2020 56% H1 2021 ■ Central 0% 1%
42%
56% ■ North 0% 1%
■ South 56% 42%
■ West 44% 56%

Source: Knight Frank Research

MICRO-MARKET SPLIT OF SALES IN H1 2020 AND H1 2021

2% 1%

6%
4%

34% Micro-Market H1 2020 H1 2021

43% ■ Central 2% 6%
H1 2020 H1 2021 ■ North 1% 4%
54%
■ South 54% 56%
56% ■ West 43% 34%

Source: Knight Frank Research

30 I N D I A R E A L E S TAT E - C H E N N A I

CHENNAI TICKET SIZE SPLIT COMPARISON OF

SALES DURING H1 2020 AND H1 2021

H1 2020 H1 2021

16 % >INR 10mn 15 % >INR 10mn

56%
37 % INR 5-10 mn
42 % INR 5-10 mn

47 % <INR 5mn 42 % <INR 5mn

South Chennai’s share in H1 2021

sales
Source: Knight Frank Research

CHENNAI HALF-YEARLY WEIGHTED AVERAGE

RESIDENTIAL PRICE MOVEMENT

50,000

The demand for spacious

48,000
homes and second homes
has picked up over the last
few months on account 46,000
INR/sq m

of the pandemic-induced
work from home and digital 44,000

schooling trends.

42,000

40,000

38,000

36,000
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021

Source: Knight Frank Research

31 I N D I A R E A L E S TAT E - C H E N N A I

RESIDENTIAL PRICE MOVEMENT IN SELECT LOCATIONS

Price range in H1 2021

Micro Market Location 12 month Change 6 month Change
in INR/sq m (INR/sq ft)

Anna Nagar 110,800–125,000 (10,200–11,600) -4% 2%

Central Chennai
Kilpauk 151,000–167,000 (14,000–15,500) -3% 3%

Kolathur 44,000–58,100 (4,100–5,400) -2% 3%

North Chennai
Perambur 61,400–70,000 (5,700–6,500) -2% 4%

Perumbakkam 43,000–48,400 (4,000–4,500) -2% 5%

South Chennai
Kelambakkam 34,400–42,000 (3,200–3,900) -2% 5%

Porur 54,900–61,400 (5,100–5,700) -1% 7%

West Chennai
Mogappair 64,600–72,100 (6,000–6,700) -1% 6%

Source: Knight Frank Research

MICRO-MARKET HEALTH

Unsold Inventory Quarters-to-sell (QTS) Age of Inventory

Micro-market
(housing units) (YoY Change) (in quarters) (in quarters)

Central Chennai 587 (-29%) 4.5 17.2

North Chennai 408 (-35%) 4.2 19.8

South Chennai 6,041 (-26%) 3.3 17.5

West Chennai 4,826 (6%) 6.4 14.9

Source: Knight Frank Research

32 I N D I A R E A L E S TAT E - H Y D E R A B A D

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33 I N D I A R E A L E S TAT E - H Y D E R A B A D

Expert Take

Demand, supply and prices grew in the Hyderabad

residential market during H1 2021 as compared to the
corresponding period last year. Being the epicentre of
business activity in the city, West Hyderabad continued
to attract the most demand. As pandemic-induced
lockdowns and the consequent work from home and
digital schooling trends created the need for more space
RESIDENTIAL for homebuyers, the demand for larger homes gained
MARKET momentum.

P R A D N YA N E R K A R

HYDERABAD MARKET SUMMARY

PARAMETER 2020 CHANGE (YOY) H1 2020 H1 2021 CHANGE (YOY)

Launches
12,826 -5% 4,422 16,712 278%
(housing units)

Sales
10,042 -38% 4,782 11,974 150%
(housing units)

Price INR 48,535/sq m INR 50,300/sq m INR 50,803/sq m

0% 1%
(weighted average) (INR 4,509/sq ft) (INR 4,673/sq ft) (INR 4,720/sq ft)

Unsold inventory
7,180 63% 4,037 11,918 195%
(housing units)

Quarters-to-sell (QTS) 2.2 - 1.1 3.2 -

Age of unsold inventory

11.5 - 15.2 9.1 -
(in quarters)

Note – 1 square metre (sq m) = 10.764 square feet (sq ft)

Source: Knight Frank Research
34 I N D I A R E A L E S TAT E - H Y D E R A B A D

QUARTERLY LAUNCHES AND SALES TREND

Launches (Units) Sales (Units)

10000

9000

8000

7000
Number of units

6000

5000

4000

3000

2000

1000

0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Source: Knight Frank Research

• The Hyderabad residential market recorded a growth in terms of • The city-level average residential prices grew by a marginal 1% YoY
demand as well as supply in H1 2021 as compared to H1 2020. in H1 2021 from INR 50,300/sq m (INR 4,673/sq ft) in H1 2020 to
However, in terms of the quarterly trend, launches and sales went INR 50,803/sq m (INR 4,720/sq ft) in H1 2021.
down sequentially in Q2 2021 on account of the COVID-induced
• Unsold inventory levels in the Hyderabad residential market grew to
lockdowns.
11,918 units in H1 2021 largely contributed by new launches.
• New launches grew by a substantial 278% YoY in H1 2021 as
• The QTS levels went up from 2.2 in H2 2020 to 3.2 in H1 2021, in
developers responded to the growing residential demand in the
line with the growth in new launches during H1 2021. The lull in
market.
sales velocity during Q2 2020 and Q2 2021 due to the pandemic-
• West Hyderabad continued to account for the largest share in new induced lockdowns also contributed to this rise in QTS in H1 2021.
launches, growing by 312% YoY in H1 2021. QTS is the number of quarters required to exhaust the existing
unsold inventory in the market. The existing unsold inventory
• On account of the pandemic-induced work from home trend,
is divided by the average sales velocity of the preceding eight
demand for larger homes has picked-up substantially in the
quarters to arrive at the QTS number for the current quarter.
Hyderabad residential market over the past few months. As a result,
the share of the INR 10-20 mn ticket-size category in the total
launched units grew from 18% or 1,544 units in H2 2020 to 27% or
4,444 units in H1 2021.

• Residential sales grew by a significant 150% YoY in H1 2021.

Further, 63% of these sales were concentrated in the West
Hyderabad region.

• In terms of ticket-size, demand grew across all categories,

especially in the INR 2.5-5 mn category with a 240% YoY increase
and the INR 10-20 mn category with a 158% YoY increase in H1
2021.
35 I N D I A R E A L E S TAT E - H Y D E R A B A D

MICRO-MARKET CLASSIFICATION

Micro market Locations

HMR – Central Begumpet, Banjara Hills, Jubilee Hills, Panjagutta, Somajiguda

HMR – West Kukatpally, Madhapur, Kondapur, Gachibowli, Raidurgam, Kokapet
HMR – East Uppal, Malkajgiri, LB Nagar
HMR – North Kompally, Medchal, Alwal, Quthbullanpur
HMR – South Rajendra Nagar, Shamshabad

*HMR stands for Hyderabad Metropolitan Region Source: Knight Frank Research

MICRO-MARKET SPLIT OF NEW LAUNCHES IN H1 2020 AND H1 2021

1%

6%
13% 7%

17% Micro-Market H1 2020 H1 2021

20%
H1 2020 H1 2021 ■ HMR - Central 1% 6%
■ HMR - East 13% 7%
59%
64% ■ HMR - North 17% 20%
3%
10% ■ HMR - South 10% 3%
■ HMR - West 59% 64%

Source: Knight Frank Research

MICRO-MARKET SPLIT OF SALES IN H1 2020 AND H1 2021

7%
8%
7%
12%

Micro-Market H1 2020 H1 2021

H1 2020 H1 2021 18% ■ HMR - Central 7% 8%
16%
■ HMR - East 12% 7%
59%
63% ■ HMR - North 16% 18%
4% ■ HMR - South 7% 4%
7%
■ HMR - West 59% 63%

Source: Knight Frank Research

36 I N D I A R E A L E S TAT E - H Y D E R A B A D

HYDERABAD TICKET SIZE SPLIT

COMPARISON OF SALES DURING
H1 2020 AND H1 2021

H1 2020 H1 2021

150%
37 % >INR 10mn 35 % >INR 10mn

40 % INR 5-10 mn
44 % INR 5-10 mn

22 22
YoY growth in sales in H1 2021

% <INR 5mn % <INR 5mn

Source: Knight Frank Research

HYDERABAD HALF-YEARLY WEIGHTED

AVERAGE RESIDENTIAL PRICE MOVEMENT

52,000

On account of the pandemic-

induced work from 50,000

home trend, demand for

larger homes has picked- 48,000
INR/sq m

up substantially in the
Hyderabad residential 46,000
market over the past few
months.
44,000

42,000

40,000

38,000
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021

Source: Knight Frank Research

37 I N D I A R E A L E S TAT E - H Y D E R A B A D

RESIDENTIAL PRICE MOVEMENT IN SELECT LOCATIONS

Price range in H1 2021

Micro Market Location 12 month Change 6 month Change
in INR/sq m (INR/sq ft)

Banjara Hills 108,716-112,634 (10,200-10,600) 0% 2%

HMR - Central
Jubilee Hills 118,296-119,373 (10,990-11,090) 1% 2%

LB Nagar 44,132-48,007 (4,100-4,460) 0% 3%

HMR - East
Nacharam 40,451-42,938 (3,578-3,989) 1% 4%

Kompally 35,650-35,790 (3,312-3,325) 2% 5%

HMR - North
Sainikpuri 29,063-29,999 (2,700-2,787) 2% 4%

Rajendra Nagar 51,990-53,583 (4,830-4,978) 1% 4%

HMR - South
Bandlaguda 42,819-45,575 (3,978-4,234) 1% 4%

Kokapet 52,173-55,854 (4,847-5,189) 1% 2%

HMR - West
Manikonda 47,254-48,266 (4,390-4,484) 2% 3%

Source: Knight Frank Research

MICRO-MARKET HEALTH

Unsold Inventory (housing Quarters-to-sell (QTS) Age of Inventory

Micro-market
units) (YoY Change) (in quarters) (in quarters)

HMR - Central 612 (163%) 2.2 6.7

HMR - East 951 (117%) 2.6 11.8

HMR - North 2,016 (248%) 3.1 12.2

HMR - South 968 (84%) 4.9 16.3

HMR - West 7,373 (227%) 3.3 7.2

Source: Knight Frank Research

38 I N D I A R E A L E S TAT E - K O L K ATA

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39 I N D I A R E A L E S TAT E - K O L K ATA

Expert Take

Kolkata’s residential market fared well on both the demand

conversion and new supply parameters in H1 2021. Despite
the conditional lockdowns brought about by the second
wave of the pandemic in Q2 2021, homebuyer preference for
products with a price tag of up to INR 50 million remained
strong. Enquiries for gated communities, developer support
through virtual engagements and flexibility in payment
RESIDENTIAL structures at the time of bookings should translate into a
MARKET healthy sales velocity with a return to normalcy.

KOLKATA MARKET SUMMARY

PARAMETER 2020 CHANGE (YOY) H1 2020 H1 2021 CHANGE (YOY)

Launches
4,148 -27% 858 2,195 156%
(housing units)

Sales
8,912 -21% 2,937 5,115 74%
(housing units)

Price INR 34,585/ sq m INR 33,433/sq m INR 34,595/sq m

-4% 3%
(weighted average) (INR 3,213/sq ft) (INR 3,106/sq ft) (INR 3,214/sq ft)

Unsold inventory
28,160 -14% 30,845 25,240 -18%
(housing units)

Quarters-to-sell (QTS) 11.2 - 12.1 9.8 -

Age of unsold inventory

15.2 - 13.4 15.8 -
(in quarters)

Note – 1 square metre (sq m) = 10.764 square feet (sq ft)

Source: Knight Frank Research
40 I N D I A R E A L E S TAT E - K O L K ATA

QUARTERLY LAUNCHES AND SALES TREND

Launches (Units) Sales (Units)

4,000

3,500

3,000
Number of units

2,500

2,000

1,500

1,000

500

0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Source: Knight Frank Research

Note:

COVID-19 disruptions in market activity led to a standstill in sales activity at residential project sites and registration offices during Q2 2020. In some cases, customers paid nominal
amounts on application for housing units, which could be identified and allotted later. Such instances of transactions with limited details on booking were not considered in the Q2
2020 numbers. With more details awaited on certainty of such transactions, the recording was deferred and the same was captured during the next quarter.

• Kolkata’s residential real estate market started showing healthy has also seen a demand bounce back.
sales velocity, especially in Q3 2020 and Q4 2020. In Q1 2021,
• In H1 2021, new residential launches stood at 2,195 units.
many developers reported the prevalence of a positive homebuyer
Compared to H1 2020, this is a healthy increase of 2.5 times,
sentiment. However, with the second wave of the pandemic
mainly due to the base effect. Before the city went into a
unfolding in Q2 2021, residential real estate demand was again
conditional lockdown in Q2 2021, many developers had launched
impacted in this quarter. In H1 2021, Kolkata witnessed sales of
new projects. The new residential supply was largely introduced
5,115 residential units, a 74% YoY increase over H1 2020. This
in the affordable and mid-segment category in locations such as
is largely on account of the lower base of H1 2020 due to the
Howrah, EM Bypass, Narendrapur, Rajarhat and other fringe areas
washout quarter of Q2 2020 during the first wave of the COVID-19
in northern Kolkata.
pandemic.

• The share of ticket sizes < INR 5 million continued to dominate the
overall sales volume. However, compared to the H1 2020 period, • In H1 2021, Kolkata’s residential real estate prices showed a minor

the share of this category declined from 69% to 63% in H1 2021. uptick of 3%. This is largely due to a marginal price appreciation in

Locations in South Kolkata such as Joka and Diamond Harbour some locations over the past one year due to healthy movement

Road continue to remain popular among homebuyers. Projects of ready to move in inventory and declining stock position of a

which are ready to move in or nearing completion have seen few developers. Due to the adverse impact of the second wave

good traction from homebuyers as plenty of affordable product of COVID-19 on sales momentum, developers remained hesitant

options are available from reputed builders. The pandemic has also to increase prices and offered virtual customer engagement and

induced demand for gated communities in the affordable to mid- flexibility in booking amount for new sales to sweeten the deal for

segment ticket sizes of up to INR 50 million. homebuyers.

• In H1 2021, the share of projects with ticket sizes of > INR 10 • For the seventh consecutive quarter, sales outpaced new launches

million increased to 13% of the total sales. In H1 2020, the share in Kolkata. This contributed to a sequential decline in unsold

of this category had been 7%. With a structural shift in homebuyer inventory which stood at 25,240 units, an 18% YoY decline over H1

preference for spacious accommodation, the high-end segment 2020. Unsold Inventory declined for the sixth consecutive quarter, a
41 I N D I A R E A L E S TAT E - K O L K ATA

trend which was first noted in H2 2018. Structural changes brought

about due to regulatory interventions in the past coupled with end-
user demand for ready-to-move-in inventory has been instrumental
The pandemic has also
in keeping the city’s unsold residential inventory in check.
induced demand for
• The continuous reduction in Kolkata’s unsold inventory has also
gated communities in the
led the quarters-to-sell (QTS) for the city to inch down from 12.1 in
H1 2020 to 9.8 in H1 2021. QTS is the number of quarters required affordable to mid-segment
to exhaust the existing unsold inventory in the market. The existing with ticket sizes of up to
unsold inventory is divided by the average sales velocity of the
INR 50 million.
preceding eight quarters in order to arrive at the QTS number for
that particular quarter.

MICRO-MARKET CLASSIFICATION

Micro market Locations

Central Park Street, Rawdon Street, AJC Bose Road, Minto Park, Elgin Road

East Kankurgachi, Beliaghata, Salt Lake, Narkeldanga, Keshtopur, EM Bypass (eastern parts)

North Baguiati, Ultadanga, Jessore Road, Shyambazar, Lake Town, BT Road, VIP Road

Rajarhat Rajarhat New Town

West Howrah, Rishra, Hooghly, Uttarpara, Chandan Nagar, Rajpur, Kona Expressway

South Ballygunge, Alipore, Tollygunge, Narendrapur, Behala, Garia, Maheshtala, EM Bypass (southern parts)

MICRO-MARKET SPLIT OF NEW LAUNCHES IN H1 2020 AND H1 2021

12% 5% 5%
16%

10%
27%
Micro-Market H1 2020 H1 2021
H1 2020 04%
40% H1 2021 ■ Central 0% 0%
■ East 12% 5%
■ North 10% 27%
■ Rajarhat 4% 23%
23%
58% ■ South 58% 40%
■ West 16% 5%

Source: Knight Frank Research

42 I N D I A R E A L E S TAT E - K O L K ATA

MICRO-MARKET SPLIT OF SALES IN H1 2020 AND H1 2021

2% 1%

5%
12% 6%
15%

26% 25% Micro-Market H1 2020 H1 2021

■ Central 2% 1%
H1 2020 H1 2021 ■ East 5% 6%
37%
■ North 26% 25%
38% ■ Rajarhat 14% 19%
14% ■ South 38% 37%
19%
■ West 15% 12%

Source: Knight Frank Research

KOLKATA TICKET SIZE SPLIT COMPARISON KOLKATA HALF-YEARLY WEIGHTED AVERAGE

OF SALES DURING H1 2020 AND H1 2021 RESIDENTIAL PRICE MOVEMENT

H1 2020 H1 2021 37,000

07 % >INR 10mn 13 % >INR 10mn

36,000

24 % INR 5-10 mn
24 % INR 5-10 mn
35,000

69 63
INR/sq m

% <INR 5mn % <INR 5mn

34,000

Source: Knight Frank Research

33,000

32,000

18%
31,000

30,000
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021
YoY decline in unsold inventory in
Kolkata Source: Knight Frank Research
43 I N D I A R E A L E S TAT E - K O L K ATA

RESIDENTIAL PRICE MOVEMENT IN SELECT LOCATIONS

Price range in H2 2020 6 month

Micro Market Location 12 month Change
in INR/sq m (INR/sq ft) Change

Park Street 130,244-215,278 (12,100-20,000) 1% 0%

Central
Rawdon Street 107,639-209,896 (10,000-19,500) 0% 0%

Kankurgachi 55,972-91,493 (5,200-8,500) -1% 0%

East
Salt Lake 51,667-81,806 (4,800-7,600) 0% 0%

Madhyamgram 27,448-34,983 (2,550-3,250) 1% 0%

North BT Road 32,292-43,056 (3,000-4,000) 0% 0%

Jessore Road 37,674-57,049 (3,500-5,300) -1% 0%

Rajarhat Rajarhat New Town 37,674-74,271 (3,500-6,900) 0% 0%

Ballygunge 87,188-204,514 (8,100-19,000) 2% 0%

Tollygunge 55,972-150,695 (5,200-14,000) 0% 0%

South
Behala 34,445-49,514 (3,200-4,600) 0% 0%

Narendrapur 27,663 -48,438 (2,570-4,500) 2% 0%

Source: Knight Frank Research

MICRO-MARKET HEALTH

Unsold Inventory (housing

Micro-market Quarters-to-sell (QTS) Age of Inventory (in quarters)
units) (YoY Change)

Central 209 (271%) 8.20 11.40

East 1,695 (-35%) 11.47 16.80

North 5,861 (-11%) 10.61 16.20

Rajarhat 7,031 (-25%) 12.97 15.70

South 7,698 (-24%) 7.81 16.97

West 2,746 (30%) 8.22 11.16

Source: Knight Frank Research

44 I N D I A R E A L E S TAT E - M U M B A I

M
U
M
B
A
I
45 I N D I A R E A L E S TAT E - M U M B A I

Expert Take

Maharashtra was amongst the first states to impose a lockdown

during the second wave. The lockdown in MMR was enforced
on 5th April 2021 and lifted partially on 7th June 2021. This
imposition of lockdown coincided with a period of withdrawal
of stamp duty concessions which ended on 31st March 2021. A
drop in sales during Q2 2021 was along expected lines as several
homebuyers who were looking to purchase their homes in 2021
closed their transactions before 31st March 2021 to make the
RESIDENTIAL
most of this lower stamp duty window. The lockdown exacer-
MARKET
bated the drop in demand further.

NIBODH SHETTY

MMR MARKET SUMMARY

PARAMETER 2020 CHANGE (YOY) H1 2020 H1 2021 CHANGE (YOY)

Launches
50,303 -37% 23,399 35,872 53%
(housing units)

Sales
48,688 -20% 18,646 28,607 53%
(housing units)

Price INR 73,053/sq m INR 74,122/sq m INR 72,657/sq m

-3.2% -2.0%
(weighted average) (INR 6,787/sq ft) (INR 6,886/sq ft) (INR 6,750/sq ft)

Unsold inventory
146,916 1% 150,054 154,181 2.8%
(housing units)

Quarters-to-sell (QTS) 10.7 - 10.8 11.8 -

Age of unsold inventory

14.6 - 15.1 15.6 -
(in quarters)

Note – 1 square metre (sq m) = 10.764 square feet (sq ft)

Source: Knight Frank Research
46 I N D I A R E A L E S TAT E - M U M B A I

QUARTERLY LAUNCHES AND SALES TREND

Launches (Units) Sales (Units)

35,000

30,000

25,000
Number of units

20,000

15,000

10,000

5,000

0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Source: Knight Frank Research

• Residential sales in the Mumbai Metropolitan Region (MMR) during in stamp duty rates- a 7-month window which had opened in
H1 2021 was up 53% Year-on-Year (YoY). The strong performance in September 2020. All these factors contributed to the upswing
H1 2021 was mainly because of robust sales in Q1 2021 which was in homebuyer sentiments which culminated in higher sales in Q1
whipped up due to the lower stamp duty window of 3% applicable 2021.
during Q1 2021 and also due to the abysmally low base of Q2
• In Q2 2021, despite closure of the lower stamp duty window, several
2020 which had been marred by the first lockdown. There was
developers continued to absorb the stamp duty incidence on
a lockdown during Q2 2021 as well, however, the sales were not
behalf of the homebuyer without increasing prices. Many of the
affected as badly as they were during Q2 2020 since developers
homebuyers who purchased homes during Q2 2021 were the ones
and homebuyers were better prepared to tackle the crisis this time.
who had visited the project sites before 31st March 2021 but could
Sales in Q1 2021 were also aided by the reduction in home loan
not close the deal due to various reasons.
rates, economic revival, drop in COVID-19 cases and reduction

MICRO-MARKET CLASSIFICATION

Micro market Locations

Central Mumbai Dadar, Lower Parel, Mahalaxmi, Worli, Prabhadevi

Central Suburbs Sion, Chembur, Wadala, Kurla, Ghatkopar, Vikhroli, Bhandup, Mulund

Navi Mumbai Vashi, Nerul, Belapur, Kharghar, Airoli, Panvel, Ulwe, Sanpada

Peripheral Central Suburbs Kalyan, Kalwa, Dombivli, Ambernath, Bhiwandi, Mumbra, Karjat

Peripheral Western Suburbs Vasai, Virar, Boisar, Palghar, Bhayandar, Nalasopara

South Mumbai Malabar Hill, Napean Sea Road, Walkeshwar, Altamount Road, Colaba

Thane Naupada, Ghodbunder Road, Pokhran Road, Majiwada, Khopat, Panchpakhadi

Western Suburbs Bandra, Andheri, Goregaon, Kandivali, Borivali, Santacruz, Vile Parle
47 I N D I A R E A L E S TAT E - M U M B A I

MICRO-MARKET SPLIT OF NEW LAUNCHES MICRO-MARKET SPLIT OF NEW SALES

IN H1 2020 AND H1 2021 IN H1 2020 AND H1 2021

1% 1%

14% 9%
12% 13%

15%
12%
11%
18%
H1 2020 1% H1 2020

20%
20%
3%
30%
20%

<1% <2%

16% 13% 9%
19%
10%
13%
14%
H1 2021 H1 2021
15%

<1% 25%
22%
<1%
21% 20%

Micro-Market H1 2020 H1 2021 Micro-Market H1 2020 H1 2021

■ Central Mumbai 1% <1% ■ Central Mumbai 1% <2%
■ Central Suburbs 12% 13% ■ Central Suburbs 9% 9%
■ Navi Mumbai 12% 13% ■ Navi Mumbai 15% 10%
■ Peripheral Central Suburbs 20% 22% ■ Peripheral Central Suburbs 30% 25%
■ Peripheral Western Suburbs 20% 21% ■ Peripheral Western Suburbs 20% 20%
■ South Mumbai 3% <1% ■ South Mumbai 1% <1%
■ Thane 18% 14% ■ Thane 11% 15%
■ Western Suburbs 14% 16% ■ Western Suburbs 13% 19%

Source: Knight Frank Research Source: Knight Frank Research

• The launches in H1 2021 grew by 53% YoY. The strong growth in • Western suburbs and Thane saw their share of sales increase from

new launches also had the same set of underlying reasons as that 13% in H1 2020 to 19% in H1 2021, and from 11% in H1 2020 to 15%

for sales. Peripheral markets of Peripheral Central Suburbs and in H1 2021, respectively. The share of Central Mumbai increased

Peripheral Western Suburbs had the highest share in new launches by 1% in the same period while the share of Peripheral Central

in H1 2021 of 22% and 21% respectively. Consequently, 54% of new Suburbs and Navi Mumbai dropped.

launches during H1 2021 were in the less than INR 5 million (<INR 5
mn) category.
 48 I N D I A R E A L E S TAT E - M U M B A I

• The share of sales in the greater than INR 5 million (>INR 5 mn)
MMR TICKET SIZE SPLIT COMPARISON OF segments grew from 46% in H1 2020 to 56% in H1 2021. As the
SALES DURING H1 2020 AND H1 2021 absolute savings was higher in the relatively costlier apartments,
homebuyers in the mid to high-income groups purchased their
H1 2020 H1 2021 homes in this limited period of reduced 3% stamp duty window
particularly during Q1 2021. This was also due to the income level of

22 % >INR 10mn 17 % >INR 10mn

homebuyers in this segment being less affected by the lockdown
adversities compared to homebuyers in the affordable housing

24 39
segments of less than 5 million (<INR 5 mn).
% INR 5-10 mn % INR 5-10 mn
• The lockdown also created a fresh demand for larger homes which

54 44
was not a necessity earlier. As families were confined to their
homes, several homebuyers realized the importance of having
% <INR 5mn % <INR 5mn
additional rooms in their houses, thereby creating a demand for
bigger homes and pushing the ticket size of apartments sold
Source: Knight Frank Research upwards. The reduction in home loan rates also improved the
ability of homebuyers to buy larger homes as the principal amount
eligbility for the home loan went up.

• The weighted average prices in MMR declined by 2% YoY in H1

2021. Even though the intensity of price correction has come down
in recent years, the prices have corrected by 17% in the last 5
years since the peak of 2016. While one or more indirect discounts
such as GST waiver, deferred payment plans, absorbing of stamp
MMR HALF-YEARLY WEIGHTED AVERAGE duty incidence, no floor rise and gifts, continue in the market,
RESIDENTIAL PRICE MOVEMENT developers are slowly phasing out or reducing the monetary value
associated with these discounts.

80,000

79,000

78,000

77,000
INR/sq m

76,000

75,000

74,000

17%
73,000

72,000

71,000
correction in prices in MMR over the
last 5 years since the peak of 2016
70,000
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021
Source: Knight Frank Research
49 I N D I A R E A L E S TAT E - M U M B A I

RESIDENTIAL PRICE MOVEMENT IN SELECT LOCATIONS

Price range in H1 2021 6 month

Micro Market Location 12 month Change
in INR/sq m (INR/sq ft) Change

Lower Parel 269,100–387,504 (25,000–36,000) -3% -1%

Central Mumbai
Worli 333,684–592,020 (31,000–55,000) -2% 0%

Ghatkopar 129,168–236,808 (12,000–22,000) 0% 0%

Central Suburbs Mulund 115,174–150,696 (10,700–14,000) -5% 0%

Powai 156,078–215,280 (14,500–20,000) -1% 0%

South Mumbai Tardeo 430,560–645,840 (40,000–60,000) -3% 0%

Badlapur 29,063–37,674 (2,700–3,500) -2% 0%

Peripheral Central
Suburbs
Dombivli 48,438–64,584 (4,500–6,000) -1% 0%

Panvel 40,903–69,966 (3,800–6,500) -3% 0%

Navi Mumbai Kharghar 72,119–96,876 (6,700–9,000) -2% 0%

Vashi 107,640–161,460 (10,000–15,000) -1% 0%

Mira Road 59,202–78,577 (5,500–7,300) -2% 0%

Peripheral Western
Suburbs
Virar 47,362–59,202 (4,400–5,500) -2% 0%

Ghodbunder Road 64,584–107,640 (6,000–10,000) -4% -1%

Thane
Naupada 150,696–193,752(14,000–18,000) -5% 0%

Andheri 161,460–236,808 (15,000–22,000) -1% 0%

Bandra (West) 430,560–645,840 (40,000–60,000) -1% 0%

Western Suburbs Borivali 118,404–161,460 (11,000–15,000) -3% 0%

Dahisar 96,876–118,404 (9,000–11,000) -2% 0%

Goregaon 139,932–161,460 (13,000–15,000) -5% 0%

Source: Knight Frank Research

50 I N D I A R E A L E S TAT E - M U M B A I

MICRO-MARKET HEALTH

Unsold Inventory (housing

Micro-market Quarters-to-sell (QTS) Age of Inventory (in quarters)
units) (YoY Change)

Central Mumbai 6,169 (-4%) 32.3 21.7

Central Suburbs 32,194 (10%) 26.4 15.9

Navi Mumbai 28,915 (9%) 22.4 17.1

Peripheral Central Suburbs 14,137 (-4%) 3.7 13.4

Peripheral Western Suburbs 19,325 (-3%) 6.7 15.9

South Mumbai 2,109 (-9%) 20.3 17.4

Thane 26,217 (6%) 15.7 10.2

Western Suburbs 25,118 (-4%) 13.6 12.9

MMR 154,481 (3%) 11.8 15.6

Source: Knight Frank Research

51 I N D I A R E A L E S TAT E - N C R

N
C
R
52 I N D I A R E A L E S TAT E - N C R

Expert Take

With a better understanding of the pandemic, real estate

stakeholder preparedness in 2021 has helped residential
sales in H1 2021 to exceed the H1 2020 levels. For branded
developers, customer acquisition through a personalized
and interactive virtual service is emerging as a defining
factor to engage with homebuyers and capture a larger
market share.
RESIDENTIAL
MARKET

NCR MARKET SUMMARY

PARAMETER 2020 CHANGE (YOY) H1 2020 H1 2021 CHANGE (YOY)

Launches
9,824 -57% 1,422 2,943 107%
(housing units)

Sales
21,234 -50% 5,446 11,474 111%
(housing units)

Price INR 45,822 /sqm INR 44,617 /sq m INR 44,832 /sq m
-4% 0%
(weighted average) ( INR 4,257 /sq ft) (INR 4,145 /sq ft) (INR 4,165 /sq ft)

Unsold inventory
110,674 -9% 118,060 102,143 -13%
(housing units)

Quarters-to-sell (QTS) 13.8 - 13.3 14.7 -

Age of unsold inventory

23.5 - 21.9 23.8 -
(in quarters)

Note – 1 square metre (sq m) = 10.764 square feet (sq ft)

Source: Knight Frank Research
53 I N D I A R E A L E S TAT E - N C R

QUARTERLY LAUNCHES AND SALES TREND

Launches (Units) Sales (Units)

14,000

12,000

10,000
Number of units

8,000

6,000

4,000

2,000

0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Source: Knight Frank Research

Note:

COVID-19 disruptions in market activity led to a standstill in sales activity at residential project sites and registration offices during Q2 2020. In some cases, customers paid nominal
amounts on application for housing units, which could be identified and allotted later. Such instances of transactions with limited details on booking were not been considered in the Q2
2020 numbers. With more details awaited on certainty of such transactions, the recording was deferred and captured during the next quarter.

• After a turbulent first half of 2020, The National Capital Region

(NCR)’s residential real estate market started showing signs of the
pent-up demand translating into a healthy sales velocity, especially
in Q3 and Q4 2020. Notwithstanding the pandemic induced
disruptions, low home loan interest rates, steady housing prices,
flexible payment schedules and other incentives from developers
helped revive homebuyer sentiment.
In H1 2021, sales of
• In H1 2021, sales of residential units in NCR’s primary market nearly
doubled compared to the H1 2020 volume. With panic due to the residential units in NCR’s
second wave, sales momentum was impacted towards the end of primary market nearly
Q1 2021. However, unlike 2020, conversion of residential enquiries
doubled compared to the
into sales cushioned the residential market in Q2 2021.
H1 2020 volume.
• New launches registered a steady upswing and stood at 2,943
units. In line with the trend witnessed in sales, the new launches
also doubled compared to the H1 2020 volume. This was mainly
due to the lower base in the year ago period coupled with the new
projects launched in the first half of April and second half of June in
2021.
54 I N D I A R E A L E S TAT E - N C R

MICRO-MARKET SPLIT OF NEW LAUNCHES IN H1 2020 AND H1 2021

10%
17%
24%
32%

H1 2020 H1 2021 Micro-Market H1 2020 H1 2021

■ Ghaziabad 10% 17%

31% ■ Gurugram 58% 31%

58% 28% ■ Noida 32% 28%
■ Greater Noida - 24%

Source: Knight Frank Research

Gurugram Noida and Greater Noida

• Gurugram registered a moderate drop in its share of new launches • Since the past two years, new project launches in Noida have also
in H1 2021. From a 58% share in H1 2020, Gurugram’s share slowed down. In H1 2021, its share decreased to 28% of the NCR
reduced to 31% in the current period. However, in terms of number total. There has been a very limited supply of new projects in this
of units launched, it still remained higher compared to the last year. market with few locations being on the developer’s radar as the
Products across affordable and mid-segment on Sohna Road, New next growth arteries. Locations such as Noida Extension, Noida-
Gurugram and Golf Course Extension Road remained popular with Greater Noida Expressway remain of interest to homebuyers
buyers. which has skewed the supply of new residential inventory in these
pockets.

MICRO-MARKET SPLIT OF SALES IN H1 2020 AND H1 2021

1% 1% 1% 1%

18% 15% 17%

18%

Micro-Market H1 2020 H1 2021

■ Delhi 1% 1%
H1 2020 H1 2021 ■ Faridabad 1% 1%
■ Ghaziabad 18% 17%
35% 34% ■ Greater Noida 35% 34%
27% 32%
■ Gurugram 27% 32%
■ Noida 18% 15%

Source: Knight Frank Research

Looking at the residential sales landscape of NCR, the percentage share of micro-market absorption has largely remained unwavering as compared
to H1 2020.
55 I N D I A R E A L E S TAT E - N C R

Gurugram
NCR TICKET SIZE SPLIT COMPARISON OF
• Compared to H1 2020, Gurugram’s mid and high-end residential
SALES DURING H1 2020 AND H1 2021
segment has witnessed a marked improvement in sales in the H1
2021 period. From a 27% share of NCR’s total, its share increased
H1 2020 H1 2021
to 32% in the current period. On a YoY basis, new residential

28 39
sales in Gurugram have grown nearly 2.5 times in volume. Steady
residential pricing, proximity to key office hubs within Gurugram, % >INR 10mn % >INR 10mn

well managed amenities and seamless connectivity have made

projects in DLF Phase 5, Golf Course Road, Golf Course Extension
Road, Sohna Road and New Gurugram much sought-after amongst
31 % INR 5-10 mn
25 % INR 5-10 mn

41 36
homebuyers.

• Gurugram being a real estate hotspot for end-users, homebuyers % <INR 5mn % <INR 5mn

have been on the lookout for township projects which have a

credible brand name attached to them and which offer large open
Source: Knight Frank Research
spaces and amenities. Independent floors and products catering
to the mid to high-end segment are also faring well as homebuyers
have plenty of options to choose from. Township projects are • Compared to H1 2020, the share of products in < INR 5 million

also witnessing significant buyer interest as some of them have ticket size has shrunk from 41% of the NCR sales volume to 36%

integrated retail components and offer community spaces which in H1 2021 as buyers have started preferring plotted colonies within

can be used for a work from home setting. that budget.

• The recent announcement of fast-tracking the completion of • The share of the INR 5-10 million bracket in overall sales shrank

Dwarka Expressway, also known as the Northern Peripheral from 31% in H1 2020 to 25% in H1 2021. However, there is a marked

Road (NPR) by August 2022 will be instrumental in the uptake improvement in the share of products with a price tag of > INR

of affordable ticket sizes in residential segment along this belt. 10 million from 28% in H1 2020 to 39% in H1 2021. The high-

Once this elevated urban expressway becomes operational, sales end segment has emerged as a real beneficiary in H1 2021, as

momentum along this belt, all the way to Central Peripheral Road preference for bigger homes in markets such as Gurugram which

(CPR) and Southern Peripheral Road (SPR) in Gurugram will get a have the bulk of NCR’s total residential stock, has translated into a

fresh lease of life. healthy sales volume contributing to the overall trend.

Noida and Greater Noida

• Since the pandemic, homebuyer preference for bigger homes in

peripheral markets has worked in favour of Noida and enquiries
for gated communities have been on the rise. Fence sitters, who
were earlier reluctant to live far away from the city, are showing
Availability of parks,
interest in purchasing homes in far flung sectors closer to the
Yamuna Expressway such as Sector 142, Sector 143 and Sector basic necessity shops and
150. Demand for residential homes remained strong for Sector 43, other facilities during the
Sector 50 and Sector 75 too.
pandemic has made gated
• Greater Noida’s share in the overall sales remained steady at community living popular
34% in H1 2021. Greater Noida has witnessed traction in the past
in suburban locations.
few months for ready to move in homes. With a gradual return to
normalcy, optimism is returning in this market for ready to move in
inventory with a price tag of < INR 5 million.
 56 I N D I A R E A L E S TAT E - N C R

NCR HALF-YEARLY WEIGHTED AVERAGE RESIDENTIAL PRICE MOVEMENT

50,000

49,000

48,000

47,000

46,000
• In H1 2021, the weighted average residential price in
INR/sq m

45,000 NCR remained at par with the year ago period. With
the COVID-19 outbreak, some developers have started
44,000 offering flexibility in payment of booking amount as well
as relaxation in future payment terms, but no outright
43,000 discounts on quoted prices per square foot are offered
in the wake of margin pressure.
42,000
• However, a few locations such as Dwarka, Sector 82
in Faridabad and some sectors in Greater Noida have
41,000
seen a marginal softening of prices in the range of 1-2%
YoY.
40,000
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021

Source: Knight Frank Research

RESIDENTIAL PRICE MOVEMENT IN SELECT LOCATIONS

Price range in H1 2021

Micro Market Location 12 month Change 6 month Change
in INR/sq m (INR/sq ft)

Dwarka 67,813–96,876 (6,300–9,000) -1% 0%

Delhi
Greater Kailash II 236,808–389,657(22,000–36,200) 0% 0%

Sector 82 33,368–37,674 (3,100–3,500) -2% 0%

Faridabad
Sector 88 33,368–36,597 (3,100–3,400) 0% 0%

NH-24 Bypass 30,656–31,808 (2,848–2,955) 0% 0%

Ghaziabad
Raj Nagar Extension 31,216–35,812 (2,900–3,327) 0% 0%
57 I N D I A R E A L E S TAT E - N C R

Sector 1 34,606–38,750 (3,215–3,600) -1% -1%

Greater Noida
Omicron I 32,238–33,368 (2,995–3,100) 0% 0%

Sector 77 54,896–64,423 (5,100–5,985) 0% 0%

Gurugram
Sector 81 53,820–61,613 (5,300–5,724) 0% 0%

Sector 78 49,407–58,233 (4,590–5,410) 0% 0%

Noida
Sector 143 45,833–50,591 (4,258–4,700) -2% 0%

Source: Knight Frank Research

MICRO-MARKET HEALTH

Unsold Inventory (housing

Micro-market Quarters-to-sell (QTS) Age of Inventory (in quarters)
units) (YoY Change)

Delhi 1,462 (-16%) 24.32 16.77

Faridabad 2,312 (-4%) 29.78 29.17

Ghaziabad 20,154 (-10%) 18.00 21.41

Greater Noida 40,828 (-16%) 12.71 25.93

Gurugram 21,058 (-15%) 13.40 20.52

Noida 16,329 (-12%) 17.76 26.41

Source: Knight Frank Research

• The downward trend of unsold inventory witnessed since 2016, to arrive at the QTS number for the current quarter. The QTS of NCR
continued in H1 2021. With a 13% YoY decline in the latest period, it suggests that if the sales velocity remains the same, it would take more
stood at 102,143 units for the NCR market. than 4 years to exhaust the current unsold inventory.

• Whilst the unsold inventory has reduced on a continual basis, the • The age of inventory across markets in NCR continues to be
quarters-to-sell (QTS) inched up from 13.3 in H1 2020 to 14.7 at the end very high, with most locations breaching the 5-year mark. Noida and
of June 2021. QTS is the number of quarters required to exhaust the Greater Noida have a high age of inventory on account of construction
existing unsold inventory in the market. The existing unsold inventory delays for several projects launched during 2006 to 2011.
is divided by the average sales velocity of the preceding eight quarters
58 I N D I A R E A L E S TAT E - P U N E

P
U
N
E
59 I N D I A R E A L E S TAT E - P U N E

Expert Take

Homebuyers in Pune had responded very favourably to the

stamp duty incentive offered by the State Government. With
this lower stamp duty window ending in Q1 2021, demand
which could not be closed in that period spilled over to the
next quarter. Despite the second lockdown in Pune during
Q2 2021, several homebuyers were active in the market and
closed their purchase as developers were willing to absorb the
RESIDENTIAL increased incidence of stamp duty. With homebuyers having
MARKET to spend more time indoors, their appreciation for homes
with balconies has become visible. Many developers are
now launching units with attached balconies to cater to this
demand.

NIBODH SHETTY

PUNE MARKET SUMMARY

PARAMETER 2020 CHANGE (YOY) H1 2020 H1 2021 CHANGE (YOY)

Launches
34,992 -22% 13,435 20,477 52%
(housing units)

Sales
26,919 -18% 10,049 17,474 74%
(housing units)

Price INR 43,236/sq m INR 43,830 /sq m INR 43,164 /sq m

-5.3% -1.5%
(weighted average) (INR 4,017 /sq ft) (INR 4,072/sq ft) (INR 4,010/sq ft)

Unsold inventory
47,542 1% 42,855 50,545 18%
(housing units)

Quarters-to-sell (QTS) 6.5 - 6.4 6.8 -

Age of unsold inventory

13.5 - 12.7 13.2 -
(in quarters)

Note – 1 square metre (sq m) = 10.764 square feet (sq ft)

Source: Knight Frank Research
60 I N D I A R E A L E S TAT E - P U N E

QUARTERLY LAUNCHES AND SALES TREND

Launches (Units) Sales (Units)

20,000

18,000

16,000

14,000
Number of units

12,000

10,000

8,000

6,000

4,000

2,000

0
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021

Source: Knight Frank Research

• Residential sales in Pune registered a strong 74% Year-on-Year before the other apartments in the same project.
(YoY) growth in H1 2021. The performance in H1 2021 was largely
• The H1 2021 numbers were also high due to a pronounced base
driven by robust sales clocked in Q1 2021. Many homebuyers
effect on account of negligible sales in Q2 2020 during the first
rushed to purchase apartments in the closing months of the lower
lockdown. There was a second lockdown in Q2 2021 as well and
stamp duty window which ended on 31st March 2021, and this
the pandemic was more widespread and harsh this year. However,
made Q1 2021 one of the best quarters in recent years. Homebuyer
a better understanding of the infection, focus on vaccinations,
sentiments were also stimulated by a plethora of other factors such
besides better execution of digital mediums and on-site labour
as lowest ever home loans rates, demand for upgrading to larger
operations helped keep the market afloat compared to a near
homes, increased savings during lockdown, extended periods of
standstill during the same period last year in Q2 2020. An
work from home (WFH), price cuts/discounts offered by developers
important factor that aided sales in Q2 2021 was the willingness
and better job prospects for IT employees, to name a few. Homes
of developers to absorb the increased stamp duty burden on the
having attached balconies/galleries have suddenly witnessed a
homebuyer without increasing end product prices.
stronger demand from homebuyers and are getting sold out much

MICRO-MARKET CLASSIFICATION

Micro market Locations

Central Koregaon Park, Boat Club Road, Erandwane, Deccan, Kothrud, Model Colony

East Viman Nagar, Kharadi, Wagholi, Hadapsar, Dhanori

West Aundh, Baner, Wakad, Hinjewadi, Bavdhan, Pashan

North Pimpri, Chinchwad, Moshi, Chikhali, Chakan, Talegaon

South Kondhwa, Ambegaon, Undri, Dhayari, Warje, Sinhgad Road

61 I N D I A R E A L E S TAT E - P U N E

MICRO-MARKET SPLIT OF SALES IN H1 2020 AND H1 2021

2% 1%

13%
18% 23%
25%

Micro-Market H1 2020 H1 2021

20% ■ Central 2% 1%
H1 2020 H1 2021
■ East 25% 23%
19%
■ West 41% 39%
■ North 20% 19%
39% ■ South 13% 18%
41%

Source: Knight Frank Research

• Markets in the West and East continue to dominate sales in Pune.

In H1 2021, markets in the West had a 39% share in new sales
followed by East at 23%. Proximity to office hubs is the reason why
these markets are witnessing greater traction. The homebuyers
are cognizant of the fact that they will be required to go to office
at least a few days in a week once things return to normal and are
showing a preference for locations close to employment hubs.

MICRO-MARKET SPLIT OF NEW LAUNCHESIN H1 2020 AND H1 2021

1% 2%

10% 14%
25%
31% Micro-Market H1 2020 H1 2021
19%
■ Central 1% 2%
18%
H1 2020 H1 2021 ■ East 31% 25%
■ West 39% 41%
■ North 19% 18%
■ South 10% 14%
39% 41%

Source: Knight Frank Research

• Launches in H1 2021 grew by 52% YoY. As the second wave of infection hit the economy, developers were better prepared and avoided another
labour exodus by providing them shelter, food and other monetary/non-monetary assurances. Moreover, the lockdown restrictions during the
second wave were less stringent and construction activity was permitted.
62 I N D I A R E A L E S TAT E - P U N E

PUNE TICKET SIZE SPLIT COMPARISON OF

SALES DURING H1 2020 AND H1 2021

H1 2020 H1 2021

6 % >INR 10mn 9 % >INR 10mn

38 % INR 5-10 mn
40 % INR 5-10 mn

56 % <INR 5mn 51 % <INR 5mn

Source: Knight Frank Research

• The share of sales in the greater than INR 5 million (>INR 5 mn)
segment grew from 44% in H1 2020 to 49% in H1 2021. Several
homebuyers took advantage of the lower stamp duty window. The
need for more space within the home has made many homebuyers
opt for larger homes or homes with additional rooms/balconies,
thereby pushing up the ticket size of apartments sold.

PUNE HALF-YEARLY WEIGHTED AVERAGE RESIDENTIAL PRICE MOVEMENT

50,000

49,000

48,000

47,000

46,000
• The weighted average prices in Pune have declined
INR/sq m

45,000 by 1.5% YoY in H1 2021. Developers continue to offer

discounts such as GST waiver, deferred payment plans,
44,000 absorption of the stamp duty burden, no floor rise, gifts,
etc.
43,000

42,000

41,000

40,000
H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 H2 2020 H1 2021
Source: Knight Frank Research
63 I N D I A R E A L E S TAT E - P U N E

RESIDENTIAL PRICE MOVEMENT IN SELECT LOCATIONS

Price range in H1 2021 6 month

Micro Market Location 12 month Change
in INR/sq m (INR/sq ft) Change

Koregaon Park 139,932–182,988 (13,000 - 17,000) -2% 0%

Kothrud 80,730–139,932 (7,500 - 13,000) -2% 0%

Central
Erandwane 145,314–193,752 (13,500 - 18,000) -3% 0%

Boat Club Road 156,078–209,898 (14,500 - 19,500) -2% 0%

Kharadi 57,049–67,813 (5,300 - 6,300) -1% 0%

Wagholi 37,674–49,514 (3,500 - 4,600) 0% 0%

East
Dhanori 41,980–51,667 (3,900 - 4,800) -1% 0%

Hadapsar 49,514–64,584 (4,600 - 6,000) -3% 0%

Aundh 83,959–102,258 (7,800 - 9,500) -2% 0%

Baner 60,278–86,112 (5,600 - 8,000) -2% -1%

West
Hinjewadi 51,667–63,508 (4,800 - 5,900) -3% -1%

Wakad 58,126–66,737 (5,400 - 6,200) -1% 0%

Moshi 39,827–46,285 (3,700 - 4,300) -3% 0%

North Chikhali 37,674–44,132 (3,500 - 4,100) -3% 0%

Chakan 32,292–36,598 (3,000 - 3,400) -3% 0%

Ambegaon
Source: Knight Frank Research 47,362–59,202 (4,400 - 5,500) -2% -1%

South Undri 41,980–51,667 (3,900 - 4,800) -1% 0%

Kondhwa 49,514–61,355 (4,600 - 5,700) -2% 0%

Source: Knight Frank Research

64 I N D I A R E A L E S TAT E - P U N E

MICRO-MARKET HEALTH

Unsold Inventory
Micro-market Quarters-to-sell (QTS) Age of Inventory (in quarters)
(housing units) (YoY Change)

Central 1,383 (1%) 12.0 16.9

East 14,294 (13%) 7.5 14.3

West 17,148 (38%) 6.3 9.8

North 10,276 (12%) 7.4 15.0

South 7,044 (-3%) 5.5 14.3

Pune City 50,145 (17%) 6.8 13.2

Source: Knight Frank Research

• The quarters-to-sell (QTS) inched up from 5.7 in H1 2020 to 6.8 in

H1 2021. This was mainly because of a sharp dip in sales velocity due to
the pandemic induced lockdowns during Q2 2020 and Q2 2021 which
affected the average eight quarter sales velocity. QTS is the number
of quarters required to exhaust the existing unsold inventory in the
market. The existing unsold inventory is divided by the average sales
velocity of the preceding eight quarters to arrive at the QTS number for
the current quarter.
65 I N D I A R E A L E S TAT E

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66 I N D I A R E A L E S TAT E

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