How far residential realty has been knocked down in April, May and June?
New Delhi: The corona pandemic and the resultant lockdown has knocked down real estate industry really hard with as much as 81 percent sales being wiped off and new launches down by a whopping 98 percent in the second quarter (Q2) of 2020, that is, April, May and June of the current year in the top seven cities of the country.
Only four project have been launched in the top seven cities-two in Bengaluru and one project each in Kolkata and Pune totaling just 1,390 houses. Total project launches came down to only 1390 units as compared to 69,000 homes in Q2 of 2019. Delhi NCR, Mumbai, Hyderabad and Chennai drew a zero in terms of new launches. In Bengaluru, the new launches were down to the extent of 95 percent. In Pune, the new launches crashed 93 percent and in Kolkata, the new launches nosedived by 98 percent.
Sales came down to just 12,740 homes in this period as compared to 68,600 units in Q2 of 2019. Hyderabad was the worst hit with 85 percent decline in sales. The city saw sales of 660 units in this period as compared to 4,430 units in Q2 of 2019. Chennai saw hit to the extent of 84 percent with just 480 units being sold in Q2 of 2020 as compared to 2990 units in Q2 of 2019. Mumbai was hit to the extent of 83 percent with only 3,620 homes being sold in Q2 of 2020 as against 21,360 houses in Q2 of 2019.
The low new supply in Q2 of 2020 resulted in significant drop of about 5 percent in the unsold inventory of homes. The unsold inventory has now come down to about 6 lakh homes at the end of Q2 of 2020 as compared to around 6.34 lakh houses at the end of Q2 of 2019, according to a report by ANAROCK property consultants.