India Home Sales Rose 51% in 2021 as Office Leasing Fell, Study Shows

(Bloomberg) -- India's home sales rose strongly last year, according to data from property consultant Knight Frank, which expects the momentum to continue and extend to the sluggish office leasing market in 2022.

Housing demand across the top eight cities increased 51% and supply rose 58% boosted by decadal low interest rates, affordable prices, tax incentives and shelter-at-home rules, Knight Frank said in a report Wednesday. 

Office leasing rose 17% to 25.9 million square feet in the second half of the year, paring the annual drop to 3%, as companies, especially from the IT sector, sought to expand.

“Given the substantial hiring that has occurred in the IT sector during the year, it is a matter of time before its share in transactions reverts to its longer-term average,” said Chairman Shishir Baijal. “We expect this pent-up demand to hit the market in the new year.”

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