For residential real estate, the first COVID-19 wave in 2020 had a much deeper impact than the second wave this year. Housing sales in Q2 2021 stood at approximately 24,570 units across the top 7 cities, increasing by 93 percent annually but dropping by 58 percent Q-o-Q, ANAROCK data has said.
As many as 12,740 units were sold in the corresponding quarter of 2020, and 58,290 units in the preceding quarter (Q1 2021). MMR and Pune drove a massive share of housing sales between April and June 2021 with a 46 percent share of the total sales.
Approximately 24,570 units were sold in Q2 2021 across the top 7 cities, against ~58,290 units in Q1 2021 – marking a decline of 58 percent Q-o-Q. NCR, MMR, Bengaluru, and Pune together accounted for 74 percent of the sales in this quarter. Compared to Q2 2020, housing sales increased by 93 percent in Q2 2021.
MMR is the frontrunner in housing sales in Q2 2021. On a yearly basis, sales in MMR rose by 104 percent - 7,400 units sold in Q2 2021 against 3,620 units in Q2 2020. Quarterly, sales in MMR dropped by 64 percent from approximately 20,350 units sold in Q1 2021, it said.
Pune came next with around 3,790 units sold in Q2 2021 against 2,160 units in the corresponding quarter last year, and 10,550 units sold in Q1 2021 – a 75 percent y-o-y increase and a 64 percent Q-o-Q decline.
NCR sold approximately 3,470 units in Q2 2021 against 2,100 units in the corresponding period last year – an annual increase of 65 percent. Quarterly, housing sales decreased by 61 percent (from 8,790 units in Q1 2021).
Bengaluru recorded sales of approximately 3,560 units in Q2 2021 as compared to 2,990 units a year ago – a 19 percent yearly increase. On a Q-o-Q basis, sales in the city declined by 59 percent (from 8,670 units in Q1 2021).
In Hyderabad, 3,240 units were sold in Q2 2021 as compared to 660 units a year ago, and 4,400 units sold in Q1 2021 – an annual increase of 395 percent and a Q-o-Q decrease of 26 percent.
In Chennai, approximately 1,590 units were sold in Q2 2021, increasing by 231 percent y-o-y and decreasing by 44 percent against Q1 2021.
In Kolkata, 1,520 units were sold in Q2 2021, increasing by 108 percent annually and declining by 43 percent against the preceding quarter Q1 2021, it said.
Meanwhile, despite localised lockdowns and restrictions due to the second wave, developers launched new projects (mostly digitally) and put approximately 36,260 units on the market across the top 7 cities. Hyderabad is the frontrunner in overall housing launches with approximately 8,850 units launched in Q2 2021 - followed by MMR with 6,880 and Bengaluru with 6,690 units, it said.
As many as 62,130 units were launched in Q1 2021 - a decrease of 42 percent Q-o-Q due to the second COVID-19 wave.
Notably, the premium budget category (priced between Rs 80 lakh to Rs 1.5 crore) saw maximum new launches in the quarter with a 36 percent share. Next came the mid-range segment (priced Rs 40-80 lakh). Unlike in previous quarters, affordable housing accounted for just 20 percent of the new supply in Q2 2021.
"The second COVID-19 wave definitely impacted overall residential property market activity in the second quarter this year when juxtaposed against the preceding quarter. However, compared to the corresponding period of 2020, the sector displayed remarkable resilience. Importantly, the localised lockdowns and restrictions did not dent activity as much as the complete nationwide lockdown last year,” said Anuj Puri, chairman - ANAROCK Property Consultants.
“Additionally, we saw the rising dominance of listed and leading developers whose sales share against the smaller and unorganised ones increased further in the quarter amid the second wave – from 40:60 previously to 43:57 now. Back in FY2017, the ratio was 17:83. The impact of the second wave was felt more intensely by smaller and unorganized players,” he said.
Unsold inventory across the top 7 cities increased by 2 percent in Q2 2021 over Q1 2021 since new supply outpaced overall absorption numbers in this quarter. Unsold inventory increased from 6,41,860 units in Q1 2021 to approximately 6,53,540 units in Q2 2021. On a yearly basis, the overall unsold stock in the top 7 cities increased by 3 percent. However, the two major realty hotspots - MMR and NCR - saw their unsold stock decline by 6 percent and 1 percent respectively, it said.
Due to the second COVID-19 wave, average residential property prices across the top 7 cities remained stagnant in Q2 2021 against the preceding quarter. On a yearly basis, Bengaluru and NCR saw the average residential prices rise by 2 percent, while MMR, Pune, Hyderabad and Chennai saw average property prices increase by 1 percent. Kolkata saw no yearly change in average property prices.