Severely impacted by the COVID-19 pandemic, the top 7 cities saw homes worth approx. INR 88,730 crore sold in the first three quarters of 2020 as against ~INR 1,54,320 crore in the corresponding period of 2019. This is a 43% decline, with total value reduction amounting to approx. INR 65,590 crore during the period.
Says Anuj Puri, Chairman, ANAROCK Property Consultants “As was to be expected, the second quarter was lacklustre given the lockdowns and overall pressures on the economy. What is remarkable is how the third quarter stacked up, clearly indicating that buyer sentiment was in place and merely held at bay by uncertainty. Based on these results, there is now every reason to look at the coming festive season with confidence – homebuyers are back on the market. This return of sentiment, coupled with various festive offers and with attractive financial schemes, will produce a marked uptick.”
Between January to September 2020, as many as 87,460 units were sold across the top 7 cities as against approx. 2.02 lakh units sold a year ago. However, the quarterly numbers indicate that the worst is over for the residential sector. Q3 2020 saw home sales values increase by more than 2.3 times to approx. INR 29,731 crore – up from INR 12,694 crore in the preceding quarter. Q1 2020 saw home sales worth approx. INR 46,306 crore.
The upcoming festive quarter (Oct.-Dec.) will very probably see home sales values go up on the back of increased demand fed by financial schemes and offers.
Meanwhile, city-wise, MMR was on top and clocked sales worth INR 49,313 crore in the first three quarters of 2020. On yearly basis, MMR saw total sales value reduce by 22% – from INR 62,964 crore in 2019 to INR 49,313 crore this year. But, interestingly, as against 2018-period – when MMR recorded sales worth INR 47,242 crore – it became the only city to witness an increase (of 4%).
- Bangalore sales values in the first nine of months of 2020 stood at INR 12,569 crore as against INR 28,159 crore in the 2019-period. The city saw sales of nearly 17,020 units between January to September 2020.
- Housing sales value in NCR was approx. INR 9,430 crore in the first nine of months of 2020 as against INR 24,860 crore in 2019 – registering a 62% annual drop. Total housing units sold this year was less than Bangalore at 15,450 units.
- Pune saw housing sales worth INR 8,692 crore in the first nine of months of 2020 as against INR 17,524 crore back in 2019. The overall units sold in the three quarters this year is 14,200 units.
- Hyderabad witnessed housing sales worth INR 3,116 crore in this period as against INR 9,391 crore back in 2019. The overall units sold in the three quarters here is approx. 4,980 units.
- Kolkata saw sales of 4,800 units in 2020 till September whose total value is estimated to be INR 2,833 crore as against INR 5,848 crore in 2019-period.
- Chennai saw housing sales worth INR 2,777 crore in the three quarters of 2020 as against INR 5,575 crore in 2019. The city recorded home sales of nearly 4,280 units in 2020-till September.
Q3 2020 Housing Sales Values – A Massive Jump
Data suggests that the worst seems to be over for the Indian residential sector as sales went up in the third quarter of 2020. Despite the ongoing pandemic, end-users are making the most of bottomed-out property prices and historic low home loan rates and financial schemes offered by developers.
Housing sales value in the top 7 cities in Q3 2020 collectively rose to INR 29,731 crore as against INR 12,694 crore in the preceding quarter – a significant q-o-q jump of 134% over INR 46,306 crore of the pre-Covid-19 quarter.
- Chennai housing sales values jumped up almost 3.3 times – from INR 314 crore in Q2 2020 to over INR 1,039 crore in Q3 2020.
- NCR was next, recording a jump of 157% in its sales value – from INR 1,263 crore in the second quarter of 2020 to over INR 3,246 crore in the third quarter.
- Hyderabad sales values went up by 152% – from INR 410 crore in the second quarter to nearly INR 1,032 crore in Q3 2020.
- MMR saw homes worth INR 16,500 crore sold in Q3 2020 against INR 6,748 crore in the preceding quarter – an increase of 145%.
- Pune’s housing sales value stood at INR 2,968 crore in Q3 2020 against INR 1,321 crore in the preceding quarter- a 125% increase.
- Kolkata sales values went up by 121% – from INR 433 crore in the second quarter to nearly INR 957 crore in Q3 2020.
- Bangalore saw homes worth INR 3,989 crore sold in Q3 2020 against INR 2,205 crore in the preceding quarter – an increase of 81%.