Housing unit sales plunge 58% Q-o-Q due to 2nd wave impact says PropEquity

Real estate sales plunged 58% in the April-June quarter (Q2) as compared to the January-March quarter (Q1) as India faced the major brunt of COVID second wave in April and May, according to PropEquity.

While Q1 witnessed total sales of 1,08,420 units in the top seven cities, Q2 saw sales of 45,208 units.

“Stringent lockdowns across major cities in India impacted housing sales as home registrations were also suspended,” the real estate research firm said.

“Bengaluru, Chennai, Hyderabad, Kolkata, MMR, NCR and Pune are the cities where home sales witnessed a fall in in Q2 2021 versus Q1 2021 at 55%, 59%, 49%, 57%, 63%, 43% and 62% respectively,” it said.

Also, the new supply of housing units decreased by 54% in the same period to 34,053 units from Q1 2021 to 74,196 units.

Bengaluru, Chennai, Hyderabad, Kolkata, MMR, NCR and Pune reported a reduction of 65%, 66%, 65%, 30%, 52%, 55% and 38% respectively.

However, on a year-on-year basis, housing sales were up by 51% across top 7 cities in India in the second quarter of 2021 to 45,208 units from 29,942 units in Q2 of 2020.

Bengaluru, Chennai, Hyderabad, Kolkata, MMR, NCR and Pune witnessed a jump in housing sales by 33%, 65%, 138%, 14%, 38%, 98% and 39% year-on-year respectively.

“Real estate sector which was slowly recovering by March was hit with the second wave. Going ahead, we may witness resizing of units, marketing led discounts, amenities and special payment schemes to be offered by developers to boost demand, especially during the beginning of the festive season,” said Samir Jasuja, founder and managing director, PropEquity.

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