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.”
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.
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.
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%.
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.