Housing Sales-to-Supply Ratio Rises to 1.36 Amid Limited Launches in Top 7 Cities – FICCI-ANAROCK Report

Mumbai, 18th September 2020: Amidst controlled new housing launches, the residential sales-to-supply ratio has improved to 1.36 currently, as against 0.63 in 2014, reveals the FICCI-ANAROCK report Indian Housing Sector: Disrupted, Transformed & Recovering released at the 14th Annual FICCI Real Estate Summit 2020 today. The improvement in this critical ratio is indicative of sustained future growth for the housing sector.

The report also highlights that in the post-COVID-19 era, affordability of mid-income homes, calculated on the ratio of home loan payment to income, will touch its lowest-best at 27% in FY21. It was 53% in FY12 and has been falling y-o-y ever since.

Several factors will influence residential real estate revival in post-COVID-19 times. For instance, property prices have remained range-bound with weighted average prices across the top 7 cities rising only nominally at a CAGR of 3% between 2012 to 2019. This is significantly lower than the prevailing inflation rates and income growth.

Other Key Highlights of the Report

With homes now doubling as workplaces and for online education, some interesting new trends are becoming evident in residential real estate: 

• WFH option and online schooling - demand for 2.5 BHK and 3.5 BHK configurations has increased
• Home layouts are changing - functional and flexible homes in top demand.
• Plotted developments becoming popular - independent and semi-independent formats like villas or row houses provide better social distancing
• Housing requirements in tier 2 and 3 cities to increase - with reverse migration happening across the country.
• Luxury projects garnering renewed interest - from a TG that is less financially impacted by the pandemic

Download the full report - Indian Housing Sector: Disrupted, Transformed & Recovering