Housing sales in India shrank 31 percent, both in terms of value as well as unit sales, largely on account of COVID-19 pandemic. Tier 1 cities' contribution went down by 32 percent, both in terms of units and value with NCR witnessing the maximum drop in sales (45 percent), followed by Bengaluru (39 percent), the report titled Residential Real Estate Market Q3 2020-2021 by Liases Foras has said.
In 2020, the top 60 cities' housing sales stood at 2.62 lakh units, down 31 percent from 2019 when they sold 3.77 lakh units, the report said.
Housing sales in Tier 1 cities stood at 2.74 lakh in CY2019 and were at 1.85 lakh in CY2020, a decline of 32 percent. In the case of Tier 2 cities, sales were at 1.02 lakh in CY 2019 and at 76,603 in CY2020, a decline of 25 percent.
MMR witnessed a decline of 29 percent in annual unit sales and 32 percent in stock value during the 2020 calendar year. MMR contributed 33 percent of the value of sales done by the tier 1 cities in 2020. Among the top eight tier 1 cities, Pune witnessed the least drop in sales (22 percent) during the 2020 calendar year, the report said.
NCR sales dropped by nearly half (45 percent) – from 47,890 units in CY2019 to 26,344 units in CY2020, the report said, adding the value of sales also went down from Rs 31,309 crore to Rs 17,145 crore (almost 45 percent), the report said.
Tier I cities had recorded 52,727 units in the December quarter (Q3 FY 20-21), a 25 percent growth compared to last quarter when the sales were 42,327 units. Overall sales across tier I cities decreased by 24 percent compared to last year when the sales were 69,718 units.
The quarter-on-quarter (QoQ) sales across the Tier I cities have increased by 25 percent, with all cities showcasing an upward movement. Sales witnessed a maximum recovery in MMR by 46 percent, followed by Hyderabad (31 percent), Pune (26 percent), and Ahmedabad (25 percent), the report said.
As for the year-on-year sales, overall sales across tier I cities decreased by 24 percent. sales in Chennai witnessed a minimum declination of 4 percent on YoY. The maximum decline was observed in NCR (48 percent), Bengaluru (40 percent), Kolkata (25 percent), and Ahmedabad (23 percent).
Unsold inventory stands at 9.26 lakh units
Unsold units remained stable on a QoQ basis, and the current unsold across the top eight cities stands at 926,824 units. It decreased the maximum in Kolkata by -4 percent QoQ and -13 percent YoY basis. In tier I cities, months inventory reduced by 20 percent QoQ but increased by 25 percent YoY. It is the lowest in Hyderabad at 29 months and highest in Chennai at 89 months.
Due to limited new launches, the unsold stock reduced by 6 percent in terms of units and 7 percent in value.
As of the December 2020 quarter, the total unsold inventory in the primary market was 12.52 lakh units valuing Rs 8.65 lakh crore. To dispose of this inventory valuing 8.65 lakh crore, it will take 60 months. Considering 1.72 lakh crore of the value of sale registered in CY 2020. In 2019, the months' inventory was 45 months.
On a quarter-on-quarter basis, consolidated tier 1 cities unsold stock marginally declined in Q3 FY 20-21. The unsold stock increased in Chennai and Hyderabad by 1 percent each, and it remained stagnant in Bengaluru, MMR, and Pune.
Cities witnessing a drop in unsold stock included Ahmedabad (4 percent), Kolkata (4 percent), and NCR (1 percent).
The year-on-year unsold stock in Tier I cities decreased by 5 percent in December 2020 compared to the same period last year. Kolkata witnessed the maximum declination by 13 percent, followed by NCR (10 percent), Ahmedabad (8 percent), Hyderabad (7 percent), Bengaluru (5 percent), Pune (3 percent), and MMR.
The QoQ months’ inventory decreased by 20% across Tier I cities and is standing at 53 months in December 2020. Inventory overhang of Ahmedabad and Hyderabad are lowest among the tier 1 cities at 32 and 29 months, respectively. Months inventory decreased by 32 percent in MMR, followed by Hyderabad (23 percent), Ahmedabad (23 percent), Pune (21 percent), Bengaluru (16 percent), Chennai, and Kolkata (8 percent), and the least at NCR (1 percent).
As for YoY, the overall months inventory increased by 25 percent on a YoY basis. It increased by 72 percent in NCR, followed by Bengaluru (60 percent), Ahmedabad (19 percent), Kolkata, and MMR each by 16 percent. Months’ inventory increased least in Pune by 8 percent, followed by Hyderabad (7 percent) and Chennai (4 percent).
Prices remain stagnant across major citiesIn the third quarter of FY 20-21, the weighted average price across Tier I remained stagnant.
Prices remained unchanged in Ahmedabad, Hyderabad, MMR, NCR, and Pune.
Prices in Bengaluru, Chennai, and Kolkata were reduced marginally by 1 percent. YoY Weighted average price across Tier I cities also remained unchanged compared to a year ago. Hyderabad, Ahmedabad, and Chennai exhibited an increase in prices by 2 percent. Prices dipped in MMR, Kolkata (2 percent), and Bengaluru (1 percent). Prices in NCR remained stagnant, the report said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
