Post-lockdown property sales bring relief to real estate sector
The housing sector made a ‘decisive comeback’ in the third quarter of 2020 – June to September
Amidst a pandemic marked by job losses, pay cuts and health scare, the real estate sector was ailing. Added to this was a labour shortage following a mass exodus of migrant workers from big cities back to their hometowns. But the last quarter, people in the sector said, has brought major relief. Property sales, particularly in the big cities, have reportedly picked up, mainly buoyed by the housing sector.
Kishore Jain, president, CREDAI Bengaluru, said the last quarter was ‘very good’, considering April to June was a ‘disaster’. “Things have picked up. Serious buyers are in the market. There is renewed interest in ready to move in properties,” he said.
According to property consultants ANAROCK, the housing sector made a “decisive comeback” in the third quarter of 2020 – June to September.
“The top 7 cities witnessed housing sales of approximately 29,520 units in Q3 2020 as against 45,200 units in the pre-COVID-19 quarter of Q1 2020. Sales were significantly higher than the preceding quarter, when the coronavirus pandemic had brought sales down to just 12,730 units,” a report from the company said. Its chairman, Anuj Puri, said Mumbai Metropolitan Region (MMR), Bengaluru, NCR and Pune accounted for 84% of the sales in the quarter.
“MMR saw maximum sale of 9,200 units, followed by Bengaluru with 5,400 units, NCR with 5,200 units and Pune with 4,850 units. In terms of new launches, the top seven cities witnessed supply of approximately 32,530 units in Q3 2020 as against 41,220 units in Q1 2020 – reaching over 79% of the pre-COVID-19 quarter levels. Most new launches in the quarter happened virtually,” he said.
The seven cities recorded new launches of around 32,530 units in Q3 2020 as opposed to 41,220 units in pre-COVID-19 quarter of Q1 2020, reaching nearly 79% of the pre-COVID-19 quarter. However, there is a massive jump over the previous quarter of Q2 2020 that saw merely 1,390 units being launched. Key cities contributing to Q3 2020 new unit launches included MMR, NCR, Bengaluru, and Hyderabad, the report added.
Mr. Jain said multiple reasons have contributed to the development. “Before this, few people gave importance to their residence; it was like a bed and breakfast. After work from home, for the first time, some things may have been noticed. People started looking for a sense of belongingness and comfort, savings and investment. Secondly, it is the best time to buy a property. The prices are rock bottom and interest rates as low as probably in 2003,” he explained, adding that commercial real estate deals were also beginning to get renewed.
Property consultants and realtors expect the trend to continue, especially for residential real estate, even predicting a supply-demand mismatch next year due to fewer new launches.