Mumbai, 26 March 2020: As anticipated, the Covid-19 pandemic had considerable impact on the Indian housing sector. Residential sales saw a 42% y-o-y drop in the first quarter of 2020, reveals the latest data by ANAROCK. In Q1 2020, residential sales in the top 7 cities stood at 45,200 units, against 78,510 units a year ago. On q-o-q basis, housing sales fell by 24%.
Meanwhile, new launches too fell by 42% annually - from 70,480 units in Q1 2019 to approx. 41,200 in Q1 2020. Q-o-q supply also declined by approx. 21%. Yearly trends indicate that MMR and Pune recorded the maximum y-o-y drop of housing supply - by 61% and 56% respectively - while Chennai and Kolkata actually displayed positive trends with nearly 16% and 8% yearly rise.
Anuj Puri, Chairman – ANAROCK Property Consultants says, “Given the ongoing global healthcare calamity, it’s no surprise that housing sales and new project launches across India’s top 7 cities decreased both on yearly and quarterly basis. As expected, monthly data trends reveal that March – the month when most advisories and lockdown were imposed - saw a steep decline in both new launches and housing sales against the preceding two months.”
“The Government has taken an inarguably necessary hard-line stance to curtail the spread of the virus. The lockdowns have stalled construction activity and will lead to project delays in the future, but this is a reality the sector must accept and live with.”
Perhaps the only silver lining is that developers were able to shed nearly 3% of their unsold inventory in a year – from 6.65 lakh units in Q1 2019 to over 6.44 lakh units in Q1 2020. On a quarterly basis, the decline was just 1%.
The top 7 cities saw around 41,200 new units launched in Q1 2020, as opposed to 70,480 units in the corresponding period of 2019 and 51,850 units in Q4 2019.
The key cities contributing to new unit launches in Q1 2020 included MMR (Mumbai Metropolitan Region), Bengaluru, Pune, and NCR - together accounting for 80% of unit additions.
Source: ANAROCK Research
Around 45,200 units were sold in Q1 2020 – a significant decline of 42% y-o-y, and of 24% over the preceding quarter due to the COVID-19 pandemic. NCR, MMR, Bengaluru and Pune together accounted for 84% of the sales in the first quarter of the year.
With new supply and housing sales remaining subdued in the quarter, unsold inventory saw a marginal decline of 1% on a quarterly basis - from 6.48 lakh units in Q4 2019 to 6.44 lakh units by Q1 2020, and 3% y-o-y - from 6.65 lakh units in Q1 2019 to 6.44 lakh units by Q1 2020.
Bengaluru and Kolkata witnessed the highest yearly reduction in unsold inventory with 6% each from Q1 2019 to Q1 2020. However, unsold inventory increased by 10% in Chennai in the same period.
Residential property prices across the top cities remained stagnant in Q1 2020 over the previous quarter. On yearly basis too, there was no price movement.
Source: ANAROCK Research
Anuj Puri, Chairman of ANAROCK Group is a highly respected industry authority and thought leader with 30 years' experience in leveraging Indian and global real estate opportunities. His company ANAROCK has a staff complement of over 1800 qualified and experienced professional, with offices in all major markets in the country, dedicated services in Dubai and a global footprint with over 80,000 preferred channel partners.