Thane has fared better than Mumbai and all the other big cities in the country in Q2. Thane saw an absorption of 5.9k units in Q2, highest in India.
By Varun Singh
Thane the adjoining district to Mumbai, the financial capital of the country has fared better in Q2 (second quarter) of 2020.
Thane witnessed an absorption of 5,999 units in the Q2 of 2020, while Mumbai sold 2,206 units.
Thane has not just performed better than Mumbai during the lockdown period but is ahead of all top cities. Pune is close with 5,169 unit sold.
Even in terms of new launches, Thane saw 2,257 units being launched in Q2 of 2020. Whereas new launches in Mumbai stood at 906 units. The highest was in Bengaluru with 5,231 units launched in Q2 of 2020.
While Thane might have performed better than other cities, the overall picture isn’t too happy. There is a sharp decline in sales and new launches across the country due to the lockdown.
In a report released by PropEquity, a real estate data, research and analytics firm, sales of housing units dropped by 66% across top 9 cities in India in the Q2 of 2020 to 21,294 units versus 62,851 units in Q1 2020.
The sales fell primarily as the restrictions were imposed by the Indian government across the country to stop the spread of COVID-19 pandemic
The new supply or launches of housing units also decreased by 81% during the same period to 11,967 units from 63,535 units in Q1 2020 as developers hardly launched any new projects as sales went to standstill.
Most of the new launches took place after the lockdown restrictions were relaxed by May third week onwards.
“These are unprecedented times for the world economy and India is one of the hardest hit countries due to COVID-19 epidemic. Real estate sector which was slowly coming up by March was hit with a complete halt in construction and sales activities by March last week. We believe larger developers with low debt leverage will ride out the storm and will do reasonably well by Q3 onwards within the context of the new normal. We may witness resizing of units, discounts, amenities and special payment schemes to be offered by developers to create demand, especially during the upcoming festive season,” said Samir Jasuja, founder and managing director at PropEquity.
City wise trends
- Thane witnessed a decrease of 88% in new launches on a quarterly basis with new supply of 2,257 units in Q2’20, absorption stood at 5,999 units decreasing by 65% on a quarterly basis.
- Mumbai witnessed a decrease in new launches of 85% on a quarterly basis with 9,06 units launched in Q2’20 while the absorption dropped by 62% to 2,206 units.
- Pune witnessed new supply of 1,296 units in Q2’20, which is 92% lower than the launches in Q2’20, absorption also decreased by 69% to 5,169 units.
- Bengaluru saw a quarterly downfall of 45% in new launches with 5,231 units launched in Q2’20. Sales dropped by 66% to 2,818 units during the same period.
- Hyderabad saw a decline of 79% in new launches on a quarterly basis. The New launches stood at 1,239 units. Sales also fell by 73% to 1,522 units.
- Noida witnessed a 100% fall in new launches on a Q-o-Q basis. Whereas, sales decreased by 26% to 1,177 units during the same period.
- Gurgaon saw a fall of 81% in new launches as compared to the last quarter. The New launches stood at 138 units in Q2’20. Sales also decreased by 65% in the sequential quarter at 361 units.
- Kolkata witnessed 550 new launch units in Q2’20 decreasing by 73% on a Q-o-Q basis. Sales dropped by 70% to 1,046 units in Q2’20.
- Chennai saw a decline of 92% in new launches in Q2’20. The new launches stood at 350 units. Sales also decreased by 70% to 996 units in Q2’20.