July 10 2020, New Delhi: In a report released
by PropEquity, India’s leading real estate data, research and analytics firm, sales
or absorption of housing units dropped by 66% across top 9 cities in India in
the second quarter of 2020 to 21,294 units versus 62,851 units in Q1 2020.
The sales
fell primarily as the restrictions were imposed by the Indian government across
the country to stop the spread of COVID-19 epidemic.
The new supply or launches of
housing units also decreased by 81% during the same period to 11,967 units from
63,535 units in Q1 2020 as developers hardly launched any new projects as sales
went to standstill.
Noida was the only city where there
were zero new launches in Q2 versus other cities Gurugram, Bengaluru, Chennai,
Hyderabad, Mumbai Thane, Kolkata and Pune witnessed downfall at 81%, 45%, 92%,
79%, 85%, 88%, 73%, 92% and 81% respectively.
Most of the new launches in other
cities took place after the lockdown restrictions were relaxed by May third
week onwards.
“These are unprecedented times
for the world economy and India is one of the hardest hit countries due to
COVID-19 epidemic. Real estate sector which was slowly coming up by March was
hit with a complete halt in construction and sales activities by March last
week. We believe larger developers with low debt leverage will ride out the
storm and will do reasonably well by Q3 onwards within the context of the new
normal. We may witness resizing of units, discounts, amenities and special
payment schemes to be offered by developers to create demand, especially during
the upcoming festive season,” Mr. Samir Jasuja, founder and
managing director at PropEquity said.
Cities
Gurgaon
Gurgaon
saw a fall of 81% in new launches as compared to the last quarter. The New
launches stood at 138 units in Q2’20. Sales also decreased by 65% in the
sequential quarter at 361 units.
Noida
In Q2’20,
Noida witnessed a 100% fall in new launches on a Q-o-Q basis. Whereas, sales decreased
by 26% to 1,177 units during the same period.
Mumbai
New
launches witnessed a decrease of 85% on a quarterly basis with 9,06 units
launched in Q2’20 while the absorption dropped by 62% to 2,206 units.
Kolkata
Kolkata witnessed
550 new launch units in Q2’20 decreasing by 73% on a Q-o-Q basis. Sales dropped
by 70% to 1,046 units in Q2’20.
Hyderabad
Hyderabad
saw a decline of 79% in new launches on a quarterly basis. The New launches
stood at 1,239 units. Sales also fell by 73% to 1,522 units.
Bengaluru
India’s
IT capital saw a quarterly downfall of 45% in new launches with 5,231 units
launched in Q2’20. Sales dropped by 66% to 2,818 units during the same period.
Pune
Pune witnessed
new supply of 1,296 units in Q2’20, which is 92% lower than the launches in Q2’20,
absorption also decreased by 69% to 5,169 units.
Chennai
As compared to the previous
quarter, Chennai saw a decline of 92% in new launches in Q2’20. The new
launches stood at 350 units. Sales also decreased by 70% to 996 units in Q2’20.
Thane
Thane witnessed a decrease of 88%
in new launches on a quarterly basis with new supply of 2,257 units in Q2’20,
absorption stood at 5,999 units decreasing by 65% on a quarterly basis.
About
PropEquity:
P.E. Analytics owns and operates PropEquity which is
India’s largest online real estate data and analytics platform covering over
1,18,010 projects of 34,217 developers across over 44 cities in India. We add
approximately 300 projects every month. It is a premier Business Intelligence
product- a first of its kind in India in the Realty space.
