The worst seems to be over for the residential sector in India as housing sales have increased substantially during the Q3 of this year.
Hit hard by coronavirus and subsequent lockdowns, the real estate sector has witnessed a substantial decline in residential sales, particularly during the first three quarters of 2020. However, the worst seems to be over for the residential sector as housing sales have increased substantially during the Q3 of this year.
According to a report by ANAROCK, homes worth Rs 88,730 crore were sold in the top 7 cities of the nation in the first three quarters of 2020 as against sales worth Rs 1,54,320 crore reported in the corresponding period of 2019 — recording a 43% decline, with total value reduction amounting to about Rs 65,590 crore during the period. Between January and September 2020, as many as 87,460 units were sold across the top 7 cities as against close to 2.02 lakh units sold a year ago.
However, the quarterly numbers indicate that the worst seems to be over for the residential sector as the Q3 of 2020 saw housing sales values increase by more than 2.3 times to close to Rs 29,731 crore — up from Rs 12,694 crore in the preceding quarter. Q1 2020 saw home sales worth about Rs 46,306 crore.
This may be because despite the ongoing pandemic, end-users are making the most of bottomed-out property prices as well as historic low home loan rates and financial schemes offered by developers.
Commenting on the same, Anuj Puri, Chairman, ANAROCK Property Consultants, says, “The second quarter was lacklustre given the lockdowns and overall pressures on the economy. What is remarkable is how the third quarter 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.”
The upcoming festive quarter (October-December 2020) will hopefully see home sales values go up on the back of increased demand fed by financial schemes and offers.
Meanwhile, city-wise, MMR was on top and clocked sales worth Rs 49,313 crore in the first three quarters of 2020. On yearly basis, it saw total sales value reduce by 22% – from Rs 62,964 crore in 2019 to Rs 49,313 crore this year. But, interestingly, as against the 2018-period – when MMR recorded sales worth Rs 47,242 crore – it became the only city to witness an increase (of 4%).
Bangalore sales values in the first nine of months of 2020 stood at Rs 12,569 crore as against Rs 28,159 crore in the 2019-period. The city saw sales of nearly 17,020 units between January and September 2020.
The housing sales value in NCR was close to 9,430 crore in the first nine of months of 2020 as against Rs 24,860 crore in 2019, registering a 62% annual drop. Total housing units sold this year was less than Bangalore at 15,450 units.
Pune saw housing sales worth Rs 8,692 crore in the first nine of months of 2020 as against Rs 17,524 crore back in 2019. The overall units sold in the three quarters this year is 14,200 units.
Hyderabad witnessed housing sales worth Rs 3,116 crore in this period as against Rs 9,391 crore back in 2019. The overall units sold in the three quarters here is approx. 4,980 units.
Kolkata saw sales of 4,800 units in 2020 till September whose total value is estimated to be Rs 2,833 crore as against Rs 5,848 crore in 2019.
Chennai saw housing sales worth Rs 2,777 crore in the three quarters of 2020 as against Rs 5,575 crore in 2019. The city recorded home sales of nearly 4,280 units in 2020 till September.
Housing Sales Jump In Q3 2020
Data suggests that the worst seems to be over for the Indian residential sector as sales went up in the third quarter of 2020. Housing sales value in the top 7 cities in Q3 2020 collectively rose to Rs 29,731 crore as against Rs 12,694 crore in the preceding quarter – a significant q-o-q jump of 134% over Rs 46,306 crore of the pre-Covid-19 quarter.
Chennai housing sales values, for instance, jumped up almost 3.3 times – from Rs 314 crore in Q2 2020 to over Rs 1,039 crore in Q3 2020.
NCR was next, recording a jump of 157% in its sales value – from Rs 1,263 crore in the second quarter of 2020 to over Rs 3,246 crore in the third quarter.
MMR saw homes worth Rs 16,500 crore sold in Q3 2020 against Rs 6,748 crore in the preceding quarter, an increase of 145%.