Demand for homes to go down 25 % in current fiscal: Ind-Ra
New Delhi: The demand for residential properties will go down 25 percent in the current fiscal as compared to the last financial year, according to India Ratings and Research (Ind-Ra).
The fall in demand will be because of corona pandemic. There was already a decrease of 5 percent in 2019-20 fiscal.
The corona pandemic has caused a jump in unsold stock of homes to over 15 quarters at the end of the last fiscal. Careful planning and launches by developers and stable demand had restored to an extent the supply-demand imbalance over the fiscal 2018-19.
Out of the six top cities, Bengaluru and Hyderabad had lowest number of quarters to get rid of all the unsold stock. Chennai down south had the maximum piled up inventory.
The sale of housing properties declined 5 percent to 266 million square feet in 2019-20 in the top six cities of the country. Delhi NCR witnessed maximum fall in fiscal 2019-20. Bengaluru, however, witnessed recovery. Affordable homes segment (those houses which have a price tag of maximum Rs 50 lakh) witnessed highest fall in 2019-20.
Real estate is continuing to under-perform as an asset type which is negatively impacting its demand. Hyderabad is the only big city in the country where the prices moved up in high single digit. The other top cities have seen 1-2 percent CAGR increase in prices in the last five years.