close
Breaking news

A new line of argument has already come to dominate the public sphere: it’...read more The government has gone one step further to detect community spread of the coro...read more The government has issued an order to abolish the six allowances, including the...read more Aarogya Setu application launched by NIC is aimed to track COVID-19 affected pe...read more SEOUL| South Korea’s unemployment rate was unchanged in April as the coronavi...read more Amid the outbreak of Corona pandemic in the country, Indian government has been...read more Prime Minister Narendra Modi in his address to the nation on Tuesday indicated ...read more Corona infection in the country is taking a macabre form. So far, more than 74 ...read more Congress General Secretary Priyanka Gandhi Vadra has written a letter to UP Chi...read more On Tuesday, Prime Minister Narendra Modi announced a package of Rs 20 lakh cror...read more

Corona Effect : Housing Sales Plunge by 52%

Real Estate Impacted by Corona

India’s real estate sector has been abruptly disrupted by the Corona pandemic. As per the reports, the country’s residential real estate sector sales and launches declined by 52% and 65% respectively during January-June 2020 as compared to the same duration last year.

While the apartment prices remained stagnant, most of the buyers have delayed their purchase plans by atleast an year.

A report by ProgTiger has estimated that developers are now requiring almost three years to sell their unsold inventories as against 28 months in June 2019 while in NCR region, the duration is expected to be as long as 53 months.

Delivery of existing projects may get pushed back depending on how quickly supply chains, labour availability and liquidity inflows are restored. New launches would be few over the next few quarters as developers wait for demand revival and augment their cash flows through sales of existing units

Covid-19 aggravated the demand slump with sales declining 52% y-o-y to 88,593 units during January-June 2020. Despite being the most-affected cities with the maximum number of Covid-19 cases, Mumbai and Pune dominated sales with a share of 50% in the overall pie.

New launches, too, decreased significantly during January-June as developers remained cautious and commercial activity came to a halt during April. New launches fell 65% on an annual basis to 48,232 units.

Unsold flats declined 13% y-o-y to 7.38 lakh units in June end, but the fall was also due to lower number of new launches. At 56%, the Mumbai and Pune markets together contributed the highest share followed by Delhi-NCR (15%) and Bengaluru (10%).

While the property prices remained same, while the majority of cities used to show an annual growth of 1-3% in the past year, the sales declined by 52% on YoY basis, with Mumbai and Pune leading the sales ith almost 50% share in the overall sales.

Unsold flats declined 13% y-o-y to 7.38 lakh units in June end, but the fall was also due to lower number of new launches. At 56%, the Mumbai and Pune markets together contributed the highest share followed by Delhi-NCR (15%) and Bengaluru (10%).

Due to demand side strain, property prices remained largely muted, with majority of cities showing an annual growth of around 1-3% in the past one year. Hyderabad and Ahmedabad, however, showed comparatively stronger growth, primarily on account of end-user demand in specific locations.

(Infeed App is now live on Google Play Store. Click Here to download)

Story Page