Severely impacted by the COVID-19 pandemic, the top 7 cities saw homes worth approximately INR 88,730 crore sold in the first three quarters of 2020 as against ~INR 1,54,320 crore in the corresponding period of 2019. This is a 43% decline, with total value reduction amounting to approximately INR 65,590 crore during the period.
Anuj Puri, Chairman – ANAROCK Property Consultants says, “As was to be expected, the second quarter was lacklustre given the lockdowns and overall pressures on the economy. What is remarkable is how the third quarter stacked up, clearly indicating that buyer sentiment was in place and merely held at bay by uncertainty. Based on these results, there is now every reason to look at the coming festive season with confidence - homebuyers are back on the market. This return of sentiment, coupled with various festive offers and with attractive financial schemes, will produce a marked uptick."
Between January to September 2020, as many as 87,460 units were sold across the top 7 cities as against approximately 2.02 lakh units sold a year ago. However, the quarterly numbers indicate that the worst is over for the residential sector. Q3 2020 saw home sales values increase by more than 2.3 times to approx. INR 29,731 crore - up from INR 12,694 crore in the preceding quarter. Q1 2020 saw home sales worth approximately INR 46,306 crore.
The upcoming festive quarter (Oct.-Dec.) will very probably see home sales values go up on the back of increased demand fed by financial schemes and offers.
Meanwhile, city-wise, MMR was on top and clocked sales worth INR 49,313 crore in the first three quarters of 2020. On yearly basis, MMR saw total sales value reduce by 22% - from INR 62,964 crore in 2019 to INR 49,313 crore this year. But, interestingly, as against 2018-period – when MMR recorded sales worth INR 47,242 crore – it became the only city to witness an increase (of 4%).
Data suggests that the worst seems to be over for the Indian residential sector as sales went up in the third quarter of 2020. Despite the ongoing pandemic, end-users are making the most of bottomed-out property prices and historic low home loan rates and financial schemes offered by developers.
Housing sales value in the top 7 cities in Q3 2020 collectively rose to INR 29,731 crore as against INR 12,694 crore in the preceding quarter – a significant q-o-q jump of 134% over INR 46,306 crore of the pre-Covid-19 quarter.
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.