Projects: 32,530 units launched in Q3
The Indian housing sector has made a decisive comeback in Q3 2020 with sales and new launches rebounding to 65% and 79% of the pre-COVID-19 levels (Q1 2020), respectively, despite the COVID-19 impact on businesses.
The top 7 cities witnessed housing sales of approx. 29,520 units in Q3 2020 as against 45,200 units in the pre-COVID-19 quarter of Q1 2020.
Sales were significantly higher than the preceding quarter when the coronavirus pandemic had brought sales down to just 12,730 units.
“MMR, Bengaluru, NCR and Pune altogether accounted for 84% sales in the July-Sept quarter. MMR saw maximum sales of 9,200 units, followed by Bengaluru with 5,400 units, NCR with 5,200 units and Pune with 4,850 units,” said Anuj Puri, Chairman – ANAROCK Property Consultants.
In terms of new launches, the top 7 cities witnessed a supply of approx. 32,530 units in Q3 2020 as against 41,220 units in Q1 2020 – reaching over 79% of the pre-COVID-19 quarter levels.
Cities like Hyderabad, Kolkata and NCR saw a new supply increase during the quarter as against the first quarter of 2020. Most new launches in the quarter happened virtually, according to Puri.
Interestingly, Hyderabad, Kolkata and NCR saw their new supply increase by 45%, 24% and 10% respectively during the period. The affordable and mid segments (priced up to INR 80 Lakh) comprised over 72% share (approx. 23,290 units) of the total new supply between July-Sept.
Unsold inventory in the top cities shrunk by approx. 3% on a yearly basis – from 6.56 lakh units back in Q3 2019 to 6.36 lakh units in Q3 2020. It reduced by 1% between Q1 2020 and Q3 2020.
Thus, despite the inexorable rise of COVID-19 cases, periodic local lockdowns across states and the traditionally inauspicious ‘shradh’ period, residential sales and new launches saw reasonable momentum in Q3 2020.
On a q-o-q basis, the jump has been massive for both new launches and sales; the Apr-Jun quarter was more of an outlier with most activity at a standstill.
Currently, reduced stamp duty charges in Maharashtra coupled with developers’ incentives and rock-bottom home loan interest rates are a major attraction for homebuyers. This indicates that the upcoming festive season quarter (Oct-Dec) may see housing sales recover to almost the pre-COVID-19 levels.
Unsold inventory decreased by approx. 1% – from 6.44 lakh units in Q1 2020 to 6.36 lakh units by Q3 2020 and 3% on yearly basis – it was 6.56 lakh units in Q3 2019.
On yearly basis, Bengaluru saw the maximum reduction of 3% in its unsold stock – from nearly 62,800 units in Q3 2019 to approx. 60,820 units in Q3 2020, according to Puri. #realestate #property #housing #investment #projects /fiinews.com
