Housing Sales To Slump By 25-35%, Office Absorption To Drop BY 13-30% in 2020 Due To Corona
New Delhi: Housing sales will witness 25-35 percent drop in 2020 as compred to 2019 while new new launches will alos come down by 25-30 percent in the same period.
The office supply will be between 33-40 million square feet in 2020 as compred to about 47 million square feet in 2019, adecline of nearly 15-30 percent, according to a report by ANAROCK Property Consultants.
Net office absorption in 2020 is likely to drop to 28-35 million square feet from 40 millionsqaure feet in 2019, a drop of 13-30 percent.
The office rentals will be under pressure. To reduce operation cost, telecommuting and rostered timings/shifts may become the new norm in many industries. This will also result in higher demand for flexible workspaces.
“Besides demand-supply decline in 2020, significant new trends will emerge across segments of Indian real estate. COVID-19 has derailed the office segment's growth trajectory of last three years. New business models will be tried, making players more reliant on technology for ensuring business continuity. Besides revisiting office requirements, corporates will keep employee health and hygiene of assets as the topmost priority,” said Anuj Puri, Chairman, ANAROCK Property Consultants.
Home sales in 2019 clocked 2.61 lakh units in the top 7 cities. It may now fall between 1.70 lakh and 1.96 lakh units.
The new launches in 2019 stood at 2.37 lakh units. The same may fall down to just 1.66 lakh -1.78 lakh units.
The piled up inventory in 2020 is expected to be stable in 2020. There is single-digit annual decline expected of around 1-3 percent.
The affordable housing segment, which gained significant traction over the last few years, may also take a hit by COVID-19. The outbreak will significantly affect affordable housing's target audience. With limited income and unemployment fears, buyers of affordable housing may defer purchase decisions, leading to an estimated 1-2% rise in unsold stock within this segment in 2020.