Real Estate

Covid impact: Home sales down 43 per cent in first three quarters of 2020

Anil Urs Bengaluru | Updated on October 12, 2020 Published on October 12, 2020

The total value reduction is about ₹65,590 crore during the period

Due to Covid-19, the top seven cities in India saw a 43 per cent drop in home sales worth ₹88,730 crore sold in the first three quarters of 2020 as against ₹1,54,320 crore in the corresponding period of 2019. The total value reduction amounted to about ₹65,590 crore during the period.

“As was to be expected, the second quarter (Q2) was lacklustre given the lockdowns and overall pressures on the economy. What is remarkable is how the third quarter (Q3) 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,” said Anuj Puri, Chairman, Anarock Property Consultants.

Housing sales fall 46 per cent in July-Sept on lower demand amid Covid-19

Between January and September 2020, 87,460 units were sold across the top seven cities as against about 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 about ₹29,731 crore — up from ₹12,694 crore in the preceding quarter. Q1 2020 saw home sales worth about ₹46,306 crore.

Covid-19 impact: Office property sales fell 37% in H1 2020, says Knight Frank

The upcoming festive quarter (October-December) will very probably see home sales go up on the back of increased demand fed by financial schemes and offers.

Break-up

Meanwhile, city-wise, MMR was on top and clocked sales worth ₹49,313 crore in the first-three quarters of 2020. On a yearly basis, MMR saw total sales value reduce by 22 per cent — from ₹62,964 crore in 2019 to ₹49,313 crore this year. But, interestingly, as against the 2018 period — when MMR recorded sales worth ₹47,242 crore — it became the only city to witness an increase (of 4 per cent).

Bengaluru: Bengaluru’s sales values in the first nine of months of 2020 stood at ₹12,569 crore as against ₹28,159 crore in the 2019 period. The city saw sales of nearly 17,020 units between January and September 2020.

NCR: Housing sales value in NCR was about ₹9,430 crore in the first nine of months of 2020 as against ₹24,860 crore in 2019 — registering a 62 per cent annual drop. Total housing units sold this year were fewer than in Bengaluru at 15,450 units.

Pune: Pune saw housing sales worth ₹8,692 crore in the first nine of months of 2020 as against ₹17,524 crore back in 2019. The overall units sold in the three quarters this year are 14,200.

Hyderabad: Hyderabad witnessed housing sales worth ₹3,116 crore in this period as against ₹9,391 crore back in 2019. The overall units sold in the three quarters here is about 4,980.

Kolkata: Kolkata saw sales of 4,800 units in 2020 till September whose total value is estimated to be ₹2,833 crore as against ₹5,848 crore in the 2019 period.

Chennai: Chennai saw housing sales worth ₹2,777 crore in the three quarters of 2020 as against ₹5,575 crore in 2019. The city recorded home sales of nearly 4,280 units in 2020, till September.

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Published on October 12, 2020
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