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The Indian residential segment performed remarkably well during the first half of this year. Sales in the top 8 cities grew 185% year-on-year in the second quarter (Q2) of 2021 and 67% year-on-year in the first half of 2021.
A total of 103,238 units were launched in the first half of 2021, an increase of 71% year-on-year.
According to Knight Frank’s survey, improving consumer perceptions of owning a home have been supported by low mortgage rates, competitive house prices, and flexible, developer-driven payment schemes. . In markets like Mumbai, Pune and Bangalore, government intervention through stamp duty cuts has also served as a catalyst to revive latent demand.
The second wave of COVID-19 infections halted momentum, and the second quarter of 2021 saw a sequential 62% and 43% drop in sales and launch volume respectively during the period.
The traction impact on the residential market was seen more as a slowdown than a major hurdle, especially as sales volumes posted strong growth of 67% year-on-year to 99,416 units. Volumes in the first half of 2021 increased by 5% compared to the second half of 2020 and were not affected by the resurgence of the pandemic. Developers have also upped the stakes by launching new projects to capitalize on improving sentiment despite a significant increase in the cost of inputs such as cement and steel.
The impact on development activity was relatively less during the second wave, as the labor exodus was better managed, with developers committing to organize their housing on site. No less than 103,238 units were launched during the first half of 2021, an increase of 71% year-on-year.
It should also be noted that launch volumes in a pandemic-affected period like the first half of 2021 were 20% higher than in the relatively unaffected period of the second half of 2020.
Mumbai and Pune accounted for 46% of sales in the first half of 2021, as the reduction in stamp duty in Maharashtra boosted sales volumes through March 2021. The impact of this measure can be measured by the fact that the share of the two cities had been on average much lower at 38% during the period 2010-2019.
Karnataka was the only other state to offer a stamp duty reduction, although with relatively limited scope and by comparison, the stamp duty reduction in Karnataka did not have the same impact. Its share of sales in the first half of 2021, at 15%, remained slightly below its long-term average of 16%.
Hyderabad saw the strongest growth in the first half of 2021 in sales as well as launches which were up 150% and 278% year-on-year respectively. Bangalore recorded sales of 14,812 units, an increase of 22% year-on-year. In Chennai, residential sales jumped 93% year-on-year and launches increased 51% in the first half of 2021. Kolkata recorded sales of 5,115 residential units, a 74% year-over-year increase from first semester 2020.
In the NCR, home sales on the primary market have almost doubled compared to the volume in H1 2020.
Economically, exports in April-May 2021 recorded healthy growth of 12.6%.
FDI inflows amount to $ 82 billion for fiscal year 2021.
India currently has a comfortable foreign exchange reserve of over $ 608 billion. India experienced vaccination of around 4 million doses per day in June 2021 and this number must increase to over 10 million doses per day to achieve full vaccination of the adult population by the end of the year. ‘year.
I inherited my father’s estate after his death. I wish to distribute among the grandchildren of the family. What are the tax implications in this case? Please clarify. Avinash Rana, Sharjah.
Amounts received by inheritance or will are tax exempt. When transferring the money to the family’s grandchildren, if the transfer is for the daughter’s children, tax will be levied.
I have invested in a villa project with a developer but the developer has not started construction. There is no response to communication to the developer. What is the legal remedy available to us? Dayananda, Dubai.
As this clearly falls within the definition of a fault in service, you have recourse under the Consumer Protection Act. As this is an ongoing project, the manufacturer should have registered with the RERA. You can check online whether the project has been registered with the relevant authority, as all details must now be uploaded to the site by law. There is a complaint form on the website where you can also file your complaint with the RERA authorities.