India: Housing Sales Drop 81%Year-Over-Year in Q2 2020, New Launches by 98%

India: Housing Sales Drop 81%Year-Over-Year in Q2 2020, New Launches by 98%

Anuj Puri 25/06/2020 3
India: Housing Sales Drop 81%Year-Over-Year in Q2 2020, New Launches by 98%

Housing sales and new launches have plunged to a new low across India’s top 7 cities in Q2 2020.

Latest ANAROCK research reveals that residential sales in the quarter plummeted by 81% on yearly basis in these cities – from 68,600 units in Q2 2019 to just 12,720 units in Q2 2020.

Concurrently, new launches fell by 98% in the period with merely 1,390 units getting launched this quarter. New launches account for just four projects - two in Bengaluru and one each in Pune and Kolkata.

If we consider q-o-q data trends, housing sales dropped by 72% in Q2 2020 against Q1 2020 while new launches fell by 97%.

Interestingly, limited new launches helped unsold inventory in the top 6 cities to shrink by 5% on a y-o-y basis – from more than 6.34 lakh units in Q2 2019, it dropped to just over 6 lakh units in Q2 2020.

Anuj Puri, Chairman - ANAROCK Property Consultants says, "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, 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 approx. 2,990 units. Technology adoption has played a big role in housing sales of late, with many developers now strengthening their digital sales capabilities.”

Q2 2020 New Launch Overview

Amidst the global pandemic, the top 7 cities saw only 1,390 units launched in Q2 2020, against nearly 69,000 units in the corresponding period of 2019 - a decline of 98%. On a quarterly basis, new launches fell by nearly 97%. Nearly 41,220 units were launched in Q1 2020.

In Q2 2020, only four projects were launched - two in Bengaluru and one each in Pune and Kolkata.

  • No new launches in MMR, NCR, Hyderabad & Chennai in Q2 2020
  • Bengaluru added approx. 590 units (in 2 projects) in Q2 2020, witnessing a yearly decline of 95% and quarterly by 93%.
  • Pune added approx. 750 units (in only one project) in Q2 2020 compared to 10,700 units in Q2 2019 and 7,800 units in Q1 2020 - a drop of 93% and 90% respectively.
  • Kolkata added only one project consisting of approx. 50 units in Q2 2020, declining by 98% on y-o-y basis and 95% over Q1 2020.

City wise New Launches

Q2 2020 Overall Sales Overview

Approx. 12,740 units were sold in Q2 2020 as against 68,600 units in Q2 2019 - a decline of 81%. In the quarter of Q1 2020, housing sales stood at 45,200 units, thus falling by 72% q-o-q. NCR, MMR, Bengaluru, and Pune together accounted for 85% of total sales in Q2 2020. 

  • MMR and NCR witnessed significantly lower sales as compared to previous year and the preceding quarter. Sales in NCR and MMR decreased by 83% each in Q2 2020 against Q2 2019 and 74% each over the previous quarter. Current quarter sales were recorded at approx. 2,100 and 3,620 units, respectively.
  • Sales in Hyderabad decreased by 85% in a year – from 4,430 units in Q2 2019 to 660 units in Q2 2020. On a quarterly basis, sales declined by 75%. The city saw sales of approx. 2,680 in Q1 2020.
  • Pune and Kolkata witnessed a 79% yearly decline each, and a almost 70% quarterly decrease each in Q2 2020.
  • Approx. 2,990 units were sold in Bengaluru in Q2 2020, against 13,150 units a year ago and 8,630 units in the preceding quarter of Q1 2020. The y-o-y decline was 77% and Q-o-Q was 65%.

City wise Absorption In Units Q o Q Y o Y Percentage Change

Overall Unsold Inventory till Q2 2020 - Negligible new supply in Q2 2020 in the top 6 cities led to a reasonable decline of nearly 5% in the unsold stock on a yearly basis. The unsold stock in Q2 2019 was more than 6.34 lakh units, which has now reduced to approx. 6 lakh units as on Q2 2020. As against the previous quarter, the unsold stock decline stood at 2%.

Share this article

Leave your comments

Post comment as a guest

0
terms and condition.
  • Ross Byrne

    I am not surprised, that was predictable

  • Arron Rampling

    We are all in the same boat, it's a worldwide issue

  • Ben Kirkham

    It's gonna take time to MAKE REAL ESTATE GREAT AGAIN

Share this article

Anuj Puri

Real Estate Expert

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.

   

Latest Articles

View all
  • Science
  • Technology
  • Companies
  • Environment
  • Global Economy
  • Finance
  • Politics
  • Society