MMR saw ‘Zero’ new launches in Q2 of 2020
MMR witnessed zero new launches in the second quarter of 2020. Probably a rarity in the history of real estate industry.
By Varun Singh
The nation wide lockdown, has impacted the real estate industry severely. The number of new launches, and even units sold has drastically reduced in the second quarter (Q2) of of 2020.
Mumbai Metropolitan Region, which comprises of a major chunk of real estate in the country, saw a severe downfall in sales and new launches.
According to ANAROCK Property Consultants, no new launches in MMR were recorded in the Q2 of 2020.
The situation was same in NCR, Hyderabad and Chennai in Q2 2020, with no new launches.
Bengaluru added approx. 590 units (in 2 projects) in Q2 2020, witnessing a yearly decline of 95% and quarterly by 93%.
Pune added approx. 750 units (in only one project) in Q2 2020 compared to 10,700 units in Q2 2019 and 7,800 units in Q1 2020 – a drop of 93% and 90% respectively.
Kolkata added only one project consisting of approx. 50 units in Q2 2020, declining by 98% on y-o-y basis and 95% over Q1 2020.
Anuj Puri, Chairman – ANAROCK Property Consultants says, “A massive drop in both new launches and housing sales were, of course, expected on the back of a complete lockdown for most of this quarter (Q2).”
MMR saw a major drop even in sales, it stood at 3,620 in Q2 2020, compared to 13,910 units sold in Q1 2020. A drastic drop of 74%.
Sales in Hyderabad decreased by 85% in a year – from 4,430 units in Q2 2019 to 660 units in Q2 2020. On a quarterly basis, sales declined by 75%. The city saw sales of approx. 2,680 in Q1 2020.
Pune and Kolkata witnessed a 79% yearly decline each, and a almost 70% quarterly decrease each in Q2 2020. Pune sold 2160 units and Kolkata 730 units in Q2 2020.
Approx. 2,990 units were sold in Bengaluru in Q2 2020, against 13,150 units a year ago and 8,630 units in the preceding quarter of Q1 2020. The y-o-y decline was 77% and Q-o-Q was 65%.
Puri added, “Interestingly, MMR – one of the most COVID-19-affected cities – witnessed maximum housing sales of nearly 3,620 units among all cities, followed by Bengaluru with approx. 2,990 units. Technology adoption has played a big role in housing sales of late, with many developers now strengthening their digital sales capabilities.”
Things do not look good for the sector, even when the first half of 2020 is compared with he second half of 2019.
In H1 of 2020 only 17,530 units were sold in MMR. The figure was 35,500 in H2 of 2019, a clear 51% drop in sales in H1 2020.
In H1 of 2019, the number of units sold in MMR stood at 45,370. When compared with H1 2020 it was a 61% drop.
Even new launches in the first half of 2020 in MMR declined, it came down to 10,490 units compared to 28,100 launched in H2 of 2019. A drop of 54%.
All the new launches in the first half of 2020 in MMR are from Q1 2020, as there were no launches in Q2 2020.