Property launches jump 12%
Real Estate

Property launches jump 12%

India’s real estate was in a peculiar situation in the last fiscal. The COVID-19 pandemic had also led to a temporary halt in ongoing real estate projects.

One would assume that the pandemic has bought about a standstill in buying of houses. However, on the contrary, with several companies declaring a work from home (WFH) situation, it has actually led to homebuyers buying their own space, or rather, a bigger space.

Demand for townships with a range of amenities has accelerated after COVID-19 emphasised the importance of having amenities within your project, as per a report by CARE Ratings. This may include amenities ranging from a swimming pool to an office centre.

Availing of cheap home loans, lucrative payment plans and attractive prices, the sector has seen an increase in home buying activity, especially in places where buyers are able to avail taxation benefits.

Launches, sales and supply

Home sales in India’s eight prime residential markets showed a quarterly increase of 12 per cent in the January-March quarter (Q1) of CY2021 as compared to the last quarter – Q4 CY2020, as per a report by PropTiger.com.

Notably, builders sold a total of 66,176 homes in the primary markets in the January-March quarter of 2021, a time marked with several state governments, including Maharashtra and Delhi, announcing stamp duty and circle rate reductions to boost buyer sentiment and by effect housing sales.

On the supply side, a total of 53,037 units were launched across India during the three-month period, which saw the Union Cabinet approving a Bill to set up a Rs 20,000-crore Development Finance Institution to offer long-term capital support for infrastructure development in India. This marked an annual growth of 49 per cent in housing supply, says the PropTiger report. A quarter-on-quarter (QoQ) comparison shows new launches declined 2 per cent when compared to the last quarter of CY2020.

States act on

State governments have been undertaking measures to boost consumer sentiment in the real estate space. ?

The Maharashtra Government announced a reduction in the stamp duty on property purchases. The reduction came into effect August 2020 onwards and the state brought down the stamp duty on property registrations from 5 per cent to 2 per cent till December 31, 2020. After this period, buyers would pay 3 per cent as the stamp duty on property registrations from January 1, 2021 to March 31, 2021. During that period, housing registrations saw a sharp uptick, with the number in December 2020 and March 2021 setting new records as homebuyers rushed to avail the benefit of lower stamp duty payment. ?

Madhya Pradesh followed suit with a reduction of the cess on stamp duty charged for registration of property to 1 per cent from 3 per cent in urban areas.

Further, the Karnataka state assembly passed a bill that supports government measure to reduce stamp duty from 5 per cent to 3 per cent for flats priced between Rs 21 lakh to Rs 35 lakh and from 5 per cent to 2 per cent for flats costing up to Rs 20 lakh. The bill proposes exemption from registration charges and lower stamp duty for industrial units set up in backward areas.

Reduction in the rate of stamp duty effectively leads to lowering the cost of purchase for buyers.

- SERAPHINA D’SOUZA

India’s real estate was in a peculiar situation in the last fiscal. The COVID-19 pandemic had also led to a temporary halt in ongoing real estate projects. One would assume that the pandemic has bought about a standstill in buying of houses. However, on the contrary, with several companies declaring a work from home (WFH) situation, it has actually led to homebuyers buying their own space, or rather, a bigger space. Demand for townships with a range of amenities has accelerated after COVID-19 emphasised the importance of having amenities within your project, as per a report by CARE Ratings. This may include amenities ranging from a swimming pool to an office centre. Availing of cheap home loans, lucrative payment plans and attractive prices, the sector has seen an increase in home buying activity, especially in places where buyers are able to avail taxation benefits. Launches, sales and supply Home sales in India’s eight prime residential markets showed a quarterly increase of 12 per cent in the January-March quarter (Q1) of CY2021 as compared to the last quarter – Q4 CY2020, as per a report by PropTiger.com. Notably, builders sold a total of 66,176 homes in the primary markets in the January-March quarter of 2021, a time marked with several state governments, including Maharashtra and Delhi, announcing stamp duty and circle rate reductions to boost buyer sentiment and by effect housing sales. On the supply side, a total of 53,037 units were launched across India during the three-month period, which saw the Union Cabinet approving a Bill to set up a Rs 20,000-crore Development Finance Institution to offer long-term capital support for infrastructure development in India. This marked an annual growth of 49 per cent in housing supply, says the PropTiger report. A quarter-on-quarter (QoQ) comparison shows new launches declined 2 per cent when compared to the last quarter of CY2020. States act on State governments have been undertaking measures to boost consumer sentiment in the real estate space. ? The Maharashtra Government announced a reduction in the stamp duty on property purchases. The reduction came into effect August 2020 onwards and the state brought down the stamp duty on property registrations from 5 per cent to 2 per cent till December 31, 2020. After this period, buyers would pay 3 per cent as the stamp duty on property registrations from January 1, 2021 to March 31, 2021. During that period, housing registrations saw a sharp uptick, with the number in December 2020 and March 2021 setting new records as homebuyers rushed to avail the benefit of lower stamp duty payment. ? Madhya Pradesh followed suit with a reduction of the cess on stamp duty charged for registration of property to 1 per cent from 3 per cent in urban areas. Further, the Karnataka state assembly passed a bill that supports government measure to reduce stamp duty from 5 per cent to 3 per cent for flats priced between Rs 21 lakh to Rs 35 lakh and from 5 per cent to 2 per cent for flats costing up to Rs 20 lakh. The bill proposes exemption from registration charges and lower stamp duty for industrial units set up in backward areas. Reduction in the rate of stamp duty effectively leads to lowering the cost of purchase for buyers. - SERAPHINA D’SOUZA

Next Story
Infrastructure Urban

REC Launches Rs 50.71 Mn Mobile Medical Units in Rajasthan

In a bid to make quality healthcare accessible to remote and underserved communities, REC has extended financial support of Rs 50.71 million under its CSR initiative to the Indian Red Cross Society, Alwar, for operating five Mobile Medical Units (MMUs) over the next three years.The MMUs were flagged off on October 5, 2025, by Bhupender Yadav, Hon’ble Union Minister of Environment, Forest & Climate Change, and Sanjay Sharma, Minister of Environment, Forest & Climate Change and Science & Technology, Government of Rajasthan.The event was attended by members of the REC CSR team, M L ..

Next Story
Products

Utility-Scale Inverter

Polycab’s UT 1500V Series (350kW) three-phase string inverter features 15/12 MPPTs, supports bifacial 182mm/210mm modules, includes optional Anti-PID and PID-recovery, operates in -35°C to +60°C, and ensures high efficiency, safety, and cost-effective utility-scale PV performance.Contact: PolycabWebsite: https://polycab.com/ ..

Next Story
Resources

Shyam Metalics CMD Brij Bhushan Agarwal Elected ICC President

Brij Bhushan Agarwal, Chairman and Managing Director of Shyam Metalics, has been elected President of the Indian Chamber of Commerce (ICC), after serving as Senior Vice President. Agarwal brings decades of experience in the metals and mining sector and has guided Shyam Metalics into a leading integrated metal producer with strong steel, ferro alloys, and aluminum operations. He has also been active in social initiatives spanning education, healthcare, rural development, and skill enhancement. As ICC President, he aims to strengthen the Chamber’s role in supporting sustainable growt..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?