The coronavirus (Covid-19) pandemic has had a debilitating impact on the real estate sector. It is estimated that housing sales plummeted by 81% in the second quarter of 2020 as compared to the same period in 2019 in the top seven markets of the country, according to a report by private real estate consultancy Anarock. Not surprisingly, the National Capital Region (NCR), the real estate hub of north India, also did not witness any new realty project being launched during this period, the report adds.
The seven cities from where this data was collected include the MMR, NCR, Bengaluru, Chennai, Hyderabad, Pune and Kolkata.
The report says residential property sales across the top seven cities of the country plunged to 12,720 units in the second quarter of this year, as compared to 68,000 units in the same period of 2019.
Echoing a similar view, Gurugram-based developers and consultants said sales were virtually non-existent and that they were finding it difficult to manage even client visits. “There is a lot of uncertainty due to the coronavirus pandemic related to jobs and businesses. The latest tension with China has further added to the woes,” said Sanjay Sharma, a city-based consultant.
The report stated that significant reduction in housing sales were witnessed in Mumbai Metropolitan Region (MMR) and NCR as business fell by 83% in both areas in the second quarter of this year, compared to last year. The sale of houses in MMR was recorded at 2,100 units while NCR saw only 3,620 housing units being sold since the pandemic reared its head in the country, the report said.
“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,” said Anuj Puri, chairman of Anarock.
He however said that some cities, despite being affected by Covid-19, showed a high number of sales, which was due to technology adoption which had helped in housing sales of late, as many developers are now strengthening their digital sales capabilities.
The report also said that due to the impact of the pandemic, only 1,390 units were launched in the top seven markets in the country compared to 69,000 units launched in the similar period in 2019. In this quarter, only four projects – two in Bengaluru and one each in Pune and Kolkata – were launched while no new projects were launched in MMR, NCR, Hyderabad or Chennai, the report adds.
Praveen Jain, vice-chairman of National Real Estate Development Council (Naredco), Haryana said the realty sector in Gurugram as well as across NCR is in rough waters as sales are negligible while projects are getting delayed due to lack of workforce, as migrant workers had returned to their home districts and villages due to the lack of means of livelihood during the national lockdown, imposed to curb the spread of the pandemic.
“The demand for new houses is quite subdued and no new inquiries are coming our way. My own company has been able to sell very few units and whatever sale propositions are being discussed are old leads. A booster shot is needed to revive the real estate sector,” he said.
(Source: Hindustan Times)