India's residential market got back to action as the lockdown restrictions eased in the third quarter of 2020. Housing sales, during the July-September quarter, jumped up 34 per cent compared to the April-June quarter, which was largely impacted by the nationwide lockdown, showed a report by JLL Research.
A total of 14,415 units were sold during the quarter ended September, as against 10,753 units sold during the previous quarter.
The report showed that Mumbai accounted for 29 per cent of the total sales during the period under review, while 22 per cent of sales was contributed by Delhi-NCR.
Growth in sales activity was also driven by stronger demand in Chennai, Hyderabad and Pune.
Ramesh Nair, CEO and Country Head, India, JLL, said: "We are feeling cautiously optimistic about the residential market, driven by sales volumes in Mumbai and Delhi. A combination of favourable factors such as low mortgage rates, attractive prices combined with developers' lucrative payment plans together reinforce the longer-term potential of the sector. For end users, the next 12 months are ideal to buy a house."
"In the subsequent quarters, the translation of demand into sales will primarily hinge on enhanced consumer confidence, which, in turn, depends upon the continued implementation of progressive government policies amidst the gradual revival of the Indian economy at large," he added.
Residential market activity is also being supported by renewed interest from NRIs in Q3 2020, resulting in more pent up demand in the market and increased enquiries received by developers, the report said.