COVID-19 Effect: Housing Sales, New Launches Dip 42% Each In Q1 2020 – ANAROCK
- Residential sales stood at 45,200 units in Q1 2020 against 78,510 units in Q1 2019 across the top 7 cities; a quarterly drop of 24%
- Nearly 41,200 new units launched in Q1 2020 against 70,480 units in Q1 2019; min. 21% q-o-q drop in new supply
- Hyderabad sees the highest yearly drop of 50% in residential sales – from 5,400 units in Q1 2019 to approx. 2,680 units in Q1 2020; other cities witness similar declining trends
- For new launches, MMR & Pune record maximum y-o-y drop of 61% & 56% respectively; Chennai & Kolkata’s new launches increase by 16% & 8% respectively
- Despite the gloom, developers able to shed their unsold inventory by 3% y-o-y - from 6.65 lakh units in Q1 2019 to 6.44 lakh units in Q1 2020
Mumbai, 26 March 2020: As anticipated, the Covid-19 pandemic had a considerable impact on the Indian housing sector. Residential sales saw a 42% y-o-y drop in the first quarter of 2020, reveals the latest data by ANAROCK. In Q1 2020, residential sales in the top 7 cities stood at 45,200 units, against 78,510 units a year ago. On a q-o-q basis, housing sales fell by 24%.
Meanwhile, new launches too fell by 42% annually - from 70,480 units in Q1 2019 to approx. 41,200 in Q1 2020. Q-o-q supply also declined by approx. 21%. Yearly trends indicate that MMR and Pune recorded the maximum y-o-y drop of housing supply - by 61% and 56% respectively - while Chennai and Kolkata actually displayed positive trends with nearly 16% and 8% yearly rise.
Given the ongoing global healthcare calamity, it’s no surprise that housing sales and new project launches across India’s top 7 cities decreased both on a yearly and quarterly basis. As expected, monthly data trends reveal that March – the month when most advisories and lockdown were imposed - saw a steep decline in both new launches and housing sales against the preceding two months.
The Government has taken an inarguably necessary hard-line stance to curtail the spread of the virus. The lockdowns have stalled construction activity and will lead to project delays in the future, but this is a reality the sector must accept and live with.
Senior President- Project Execution
4 年Dear Anuj Puri jee- You are right. It is difficult to work out the actual impact of Covid-19. First quarter is certainly nil and other quarter will be negligible. Today, all of us are fighting with Covid -19 afterward new approach will be planned according to the demand. Regds- Rajneesh
Opportunities don't happen, you create them
5 年The dip in sales probably is due to the ticket size of the apartments, majorily large ticket size more because investors are shying away from purchasers and actual users are not looking at high cost apartments
Wonder how so many launches are still taking place....even before covid-19 , there was slowdown in the economy . Land monetising/debt pressures ? Optimism over brand strength or ticket sizes ? Some or all of above?
Founder at AnalyticsOnline.in | Empowering Builders & Agents to Boost Sales with Innovative Digital Solutions
5 年Great post sir