Home sales in the top nine cities of India when compared to the Q4 2019 saw a 19% dip. Sales in the first quarter of 2020 stood at 55,138 units versus 68,216 units in Q4 2019.
By Varun Singh
Home sales in the top nine cities of India have witnessed a dip. Sales in the first quarter of 2020 was down by 19% versus the fourth quarter of 2019.
Home sales or absorption of housing units in India in the first quarter of 2020 was 55,138 units versus 68,216 units in Q4 2019.
According to report by PropEquity, new supply or launches of housing units also decreased by 13% during the same period to 50,361 units from 58,049 units in Q4 2019.
Real estate transactions in Q1 2020 primarily happened in January and February as the industry almost went standstill March onwards due to various measures and lockdown announced by the Indian government to combat the spread of Corona Virus epidemic.
Noida, Bengaluru, Mumbai and Thane were the only cities where new launches witnessed a growth in Q1 versus Q4 at 9%, 16%, 20% and 4% respectively. These new launches were also primarily witnessed in January and February.
Samir Jasuja, founder and managing director at PropEquity said, “Beginning of Q1 was relatively better for the Indian real estate sector as many projects which were rightly priced attracted decent demand, especially for the projects which were nearing completion.”
He further added, “However, since March mid onwards, the real estate market came to a grinding halt due to the lockdown announced by the government, we expect transactions to resume only when there is certainty that the infection is contained and the number of cases start dropping.”
Cities
Gurgaon
Gurgaon saw a fall of 51% in new launches as compared to the last quarter. The New launches stood at 3,060 units in Q1’20. Sales also decreased by 45% in the sequential quarter at 1,650 units.
Noida
In Q1’20, Noida witnessed a 9% increase in new launches on a Q-o-Q basis. Whereas, sales decreased by 26% to 1,177 units during the same period.
Mumbai
New launches witnessed an increase of 20% on a quarterly basis with 4,668 units launched in Q1’20 while the absorption dropped by 11% to 5,332 units.
Kolkata
Kolkata witnessed 2,740 new launch units in Q1’20 decreasing by 40% on a Q-o-Q basis. Sales dropped by 24% to 3,673 units in Q1’20.
Hyderabad
Hyderabad saw a decline of 32% in new launches on a quarterly basis. The New launches stood at 3,777 units. Sales also fell by 25% to 4,349 units.
Bengaluru
India’s IT capital saw a quarterly increase of 16% in new launches with 9,766 units launched in Q1’20. Sales dropped by 17% to 9,059 units during the same period.
Pune
Pune witnessed new supply of 9,919 units in Q1’20, which is 23% lower than the launches in Q4’19, absorption also decreased by 21% to 13,738 units.
Chennai
As compared to the previous quarter, Chennai saw a decline of 21% in new launches in Q1’20. The new launches stood at 2,234 units. Sales also decreased by 19% to 3,265 units in Q1’20.
Thane
Thane witnessed an increase of 4% in new launches on a quarterly basis with new supply of 12,907 units in Q1’20, absorption stood at 12,895 units decreasing by 12% on a quarterly basis.
Also Read: COVID-19: 4.65 lac under construction homes in MMR impacted.
