With the second wave of COVID-19 impacting the real estate sector, demand for housing is expected to remain sluggish in the April-June quarter even as sales increased by 21 per cent and new supply declined 40 per cent year-on-year during January-March 2021 across seven major cities, according to data research and analytics firm PropEquity.
Sales or absorption of housing units rose by 21% across top 7 cities in India in the first quarter of 2021 to 1,05,183 units versus 87,236 units in Q1 2020. However, the new supply or launches of housing units decreased by 40% in the same period to 59,737 units from Q1 2020 at 1,00,343 units, it said.
Bengaluru, Chennai, Hyderabad, MMR, NCR and Pune are the cities where home sales witnessed a growth in Q1 2021 versus Q1 2020 at 13%, 29%, 16%, 26% and 6% respectively.
Only Kolkata witnessed downfall of 20% in home sales during the same period, it said.
“Beginning of Q1 was relatively better for Indian realty as compared to last year and there was higher demand in ready to move in units and the projects nearing completion. However, the second wave of COVID will lead to muted demand going forward and we expect sales to pick up post second wave of COVID ending which should be around Q3 or Q4 onwards,” said Samir Jasuja, founder and managing director at PropEquity.
According to the data, housing sales in Bengaluru rose 13 per cent to 12,262 units in January-March 2021 from 10,878 units in the year-ago period. Chennai saw a 29 per cent rise in sales at 5,055 units from 3,930 units, while Hyderabad witnessed a 16 per cent rise in demand to 10,964 units from 9,477 units.
In Maharashtra, housing sales in MMR grew 26 per cent to 41,323 units from 32,886 units whereas new launches fell by 48% to 20,269 units. Pune registered 31 per cent growth in demand at 25,252 units compared to 19,221 units.
Only NCR witnessed an increase in both home sales and new launches by 6% and 136% respectively in Q1 2021, it said.
However, housing sales in Kolkata dipped 20 per cent to 3,682 units in January-March 2021 from 4,605 units a year ago.