Residential property sales tanks 30% in Q1 of 2020 to 27,451 units: JLL
New Delhi: The residential property sales have tanked 30 percent in first quarter (Q1) of 2020 as the homebuyers deferred purchases. The number of homes sold in Q1 of 2002 came down to just 27,451 units in the top seven cities of the country as compared to 38,628 units that were sold in the same quarter of 2019, according to report by property consultant JLL.
The most important factor which has to light in a survey by JLL, there are hints of home price rationalization in Bengaluru, Kolkata, Delhi NCR, and Chennai.
There is expected to a improvement in buyer sentiments after lockdown and the sales of affordable and mid-segment homes will pick up towards the end of 2020.
There has also been a 58 percent drop in investments in the overall real estate industry in India in Q1 of 2020 as compared to the same period of 2019. The total investment in the industry stood at USD 1.7 billion in Q1 of 2019 which came down t just USD 0.71 billion in Q1 of 2020.
During the lockdown, there was no face-to-face meetings or site visits. There were also issues in legal due diligence and financial closure because of which investment transactions came to a halt.
The silver lining is that there are several segments of real estate industry such as warehousing, data centers and critical office outsourcing facilities will continue to attract investment. There will also be investments in global in-house centers. But in the in the short term, the institutional investors are likely to be very risk averse over the coming few quarters.