Housing sales and new launches have declined across India’s top seven cities in the second quarter of FY2020-21. The latest data from the real estate services firm, ANAROCK Property Consultants reveals that residential sales in the quarter plummeted by 81 per cent on yearly basis in these cities from 68,600 units in 2Q2019 to just 12,720 units in 2Q2020.
Concurrently, new launches declined by 98 per cent in the period with merely 1,390 units getting launched this quarter. New launches account for just four projects, with two in Bengaluru and one each in Pune and Kolkata.
Housing sales dropped by 72 per cent in 2Q2020 against 1Q2020, while new launches fell by 97 per cent quarterly.
Interestingly, limited new launches helped unsold inventory in the top six cities to shrink by 5 per cent on a YoY basis, from more than 634,000 units in 2Q2019, it dropped to just over 600,000 units in 2Q2020.
Anuj Puri, Chairman, ANAROCK Property Consultants averred, “A massive drop in both new launches and housing sales were, of course, expected on the back of a complete lockdown for most of this quarter. Interestingly, the Mumbai Metropolitan Region (MMR) – one of the most COVID-19-affected cities – witnessed maximum housing sales of nearly 3,620 units among all cities, followed by Bengaluru with approximately 2,990 units. Technology adoption has played a big role in housing sales of late, with many developers now strengthening their digital sales capabilities.”
Overview of New Launches During 2Q2020
Amidst the global pandemic, the top seven cities saw only 1,390 units launched in 2Q2020, against nearly 69,000 units in the corresponding period of 2019, a decline of 98 per cent. Quarterly, new launches fell by nearly 97 per cent. Nearly 41,220 units were launched in 1Q2020.
In 2Q2020, only four projects were launched, two in Bengaluru and one each in Pune and Kolkata. There were no new launches in MMR, the National Capital Region, Hyderabad and Chennai during the period. Bengaluru added about 590 units in two projects in 2Q2020, witnessing a yearly decline of 95 per cent and quarterly by 93 per cent.
Pune added approximately 750 units in only one project in 2Q2020 compared to 10,700 units in 2Q2019 and 7,800 units in 1Q2020, a drop of 93 per cent and 90 per cent, respectively. Kolkata added only one project consisting of approximately 50 units in 2Q2020, declining by 98 per cent on YoY basis and 95 per cent over 1Q2020.
Sales Overview for 2Q2020
Nearly 12,740 units were sold in 2Q2020 as against 68,600 units in Q2 2019, a decline of 81 per cent. In the quarter of 1Q2020, housing sales stood at 45,200 units, thus falling by 72% QoQ. NCR, MMR, Bengaluru and Pune together accounted for 85 per cent of total sales in 2Q2020.
MMR and NCR witnessed significantly lower sales as compared to the previous year and the preceding quarter. Sales in NCR and MMR decreased by 83 per cent each in 2Q2020 against 2Q2019 and 74 per cent each over the previous quarter. Current quarter sales were recorded at approximately 2,100 and 3,620 units, respectively.
Sales in Hyderabad decreased by 85 per cent in a year, from 4,430 units in 2Q2019 to 660 units in 2Q2020. Quarterly sales declined by 75 per cent. The city saw sales of approximately 2,680 in 1Q2020. Pune and Kolkata witnessed a 79 per cent yearly decline each, and an almost 70 per cent quarterly decrease each in 2Q2020.
Approximately 2,990 units were sold in Bengaluru in 2Q2020, against 13,150 units a year ago, and 8,630 units in the preceding quarter of 1Q2020. The YoY decline was 77 per cent and QoQ was 65 per cent.
Negligible new supply in 2Q2020 in the top six cities led to a reasonable decline of nearly 5 per cent in the unsold stock yearly. The unsold stock in 2Q2019 was more than 634,000 units, which has now reduced to approximately 600,000 units as on 2Q2020. As against the previous quarter, the unsold stock decline stood at 2 percent.