Prevailing Optimism Drives Realty Index Strong Breakout
Shishir Baijal, Chairman & Managing Director, Knight Frank India shares his views on Nifty index closing 4.79% higher.
Residential sales, across top eight markets of India, recorded an encouraging growth in the first half of 2021 with sales rising by 67% year on year. Despite the second wave, these markets saw a surge in sales, led by historic low home loan interest rates and attractive pricing as well as a shift in attitude towards home ownership. India’s largest residential real estate market, Mumbai, recorded the highest decadal registrations for the month of July in 2021. In fact the home registration in Mumbai for July 2021 surpassed the pre – pandemic July 2019 numbers by over 1.5 times.
With the vaccination drive steadily picking up and economic activities reviving, whilst prices remaining stable, demand for homes are expected to move upwards. As the latest report from Knight Frank indicates, the sentiments for the next six months are optimistic for sales and majority of our respondents expect a further increase in demand. This prevailing optimism is driving the retail investors to look at realty stocks positively.