Housing demand in India amid Pandemic: A report by real estate data, research and analytics firm PropEquity says sales or absorption of housing units rose by 21 per cent across the top seven cities in India in the first quarter of 2021.
Home sales in India amid Pandemic: A report by real estate data, research and analytics firm PropEquity says sales or absorption of housing units rose by 21 per cent across the top seven cities in India in the first quarter of 2021 to 1,05,183 units versus 87,236 units in Q1 2020. However, a big dip in the new supply or launches of housing units was witnessed in the same period. According to the report, the new supply or launches of housing units decreased by 40 per cent in the same period to 59,737 units from Q1 2020 at 1,00,343 units.
The rate of growth in home sales in top cities – Bengaluru, Chennai, Hyderabad, Mumbai Metropolitan Region, Delhi-NCR and Pune – witnessed in Q1 2021 versus Q1 2020 was at 13%, 29%, 16%, 26% and 6% respectively. Among large cities, only Kolkata witnessed a downfall of 20 per cent in home sales during the same period.
Commenting on the findings of the report, Samir Jasuja, founder and managing director at PropEquity said, “Beginning of Q1 was relatively better for Indian realty as compared to last year and there was higher demand in ready to move in units and the projects nearing completion. However, the second wave of COVID will lead to muted demand going forward and we expect sales to pick up post-second wave of COVID ending which should be around Q3 or Q4 onwards.”
India’s IT capital saw a rise of 13% in home sales in Q1 2021 at 12,263. New Launches decreased by 40% at 8,492 units.
Chennai saw a 29% increase in home sales in Q1 2021 and new launches decreased by 8% to 4044 units.
Home sales witnessed an increase of 16% in Q1 2021 at 10,964 units with new launches fell by 44% to 8,826 units.
Surprisingly, Kolkata saw a decrease of 20% in home sales in Q1 2021 at 3,682 units with new launches falling by 57% to 1,427 units.
Mumbai Metropolitan Region
The City of Dreams saw an increase of 26% in home sales in the first quarter at 41,323 units, whereas new launches fell by 48% to 20,269 units.
Delhi-NCR witnessed an increase in both home sales and new launches by 6% and 136% respectively in Q1 2021.
Pune witnessed a rise of 31% in sales or absorption and downfall of 41% in new launches at 12,872 units in Q1 2021.
Impact of Covid-19 Second Wave
Experts say that the second wave of Covid-19 has hit real estate housing demand. However, current lockdowns are temporary and the execution of housing projects may not be impacted much.
“The current COVID wave has hit the sector when Indian real estate housing demand was on the growth trajectory in Q1 of 2021. We believe the current state of lockdown is short lived and the execution of the ongoing projects would not be impacted much in terms of delivery timelines. Our two under completion projects in Gurgaon and Noida were witnessing steady demand in Q1 and we believe once the current COVID spread in India is stabilized, the end-user demand will again witness growth,” Ankush Kaul, President (Sales & Marketing) – Ambience Group, said.
Source : Financial Express