Sale of residential properties witnessed a sequential uptick during the July-September quarter as India began to slowly come out of one of the strictest lockdowns imposed anywhere in the world, allowing buyers to visit sites, finalise mortgage and act on pending purchase decisions.

Real estate brokerage and consultancy JLL said residential sales were up 34 per cent during July-September over the April-June period across the seven metro cities in India, tabulating figures from established developers only, prompting the head of the institution to be “cautiously optimistic” about the residential market.

Even though a more granular report is expected later this month about the health of the real estate market in each city, including Calcutta, the cumulative sales number pales in shadow when compared with 2019 and points to the extent of contraction in sales. These seven cities recorded sales of 14,415 units during July-September compared with only 10,753 units in April-June, when much of the country was completely shut. However, the sale was less than half of the 36,826 units sold in the July-September period of 2019.

“We are feeling cautiously optimistic about the residential market, driven by sales volumes in Mumbai and Delhi. A combination of factors such as low mortgage rates, attractive prices combined with developers’ lucrative payment plans reinforce the longer-term potential of the sector,” Ramesh Nair, CEO and country head of JLL, said.

Samantak Das, chief economist and head of research at the brokerage, said it did not make much sense to compare with last year. It was more important to see if there is an incremental gain month-on-month. “The festive season may bring back more buyers to the market even though the residential space is unpredictable.”

Calcutta picture

Bangalore was the only city other than Calcutta which witnessed a decline in sales over the last quarter. Only 390 units were sold in July-September against 481 in the year-ago period, a 19 per cent drop. Bangalore saw a 12 per cent dip.

Das declined to read much into the numbers. “There was hardly any launch in Calcutta in the last quarter. In a small market like this, launches can move sales dramatically,” he explained.

Meanwhile, Bengal Peerless signed on former India cricket captain Sourav Ganguly to promote the second phase of Avidipta, billed as the tallest building on EM Bypass.

“Somebody has to take the lead to shake up the market. We are trying to convey that it would be the best time to buy a property,” Ketan Sengupta, managing director of the company, said.

Prices have not moved up in the last one year and the home loan rate has come down to 7 per cent, the lowest ever, making it compelling to buy if there is possibility of income impairment.