Business & Investment

Second wave of COVID-19 hits housing demand, June quarter sales down 58%: Prop Equity

The second wave of the COVID-19 pandemic and the resulting state-wide blockade, according to a PropEquity report, reduced housing unit sales by 58% in seven major cities between April and June 2021. did. Real estate data, research and analysis company.

Home sales fell 63% in the Mumbai Metropolitan Region (MMR) and Kolkata, while they fell 43% in the Metropolitan Area (NCR) and 58% in Pune. In Bangalore and Chennai, home sales fell 55% and 59%, respectively.

“Strict blockades in major cities in India have affected home sales, as home registration has been suspended, including slow mortgage payments,” PropEquity said.

New housing unit supply and launches also fell 54% during the quarter from 74,196 units from January to March to 34,053 units. Chennai saw the largest decline in new launches at 66%, followed by Bangalore and Hyderabad at 65% each.

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However, home sales surged 51% across seven cities during the June quarter compared to the corresponding quarter last year. Sales in the NCR region increased 98% year-on-year, while Hyderabad’s 6,463 homes saw a 138% increase in total absorption. Sales growth in Kolkata and Bangalore is the lowest at 14% and 33%, respectively.

It should be noted that home sales were hit hard in the June quarter of last year as a nationwide blockade was imposed to curb the spread of COVID-19 infection in the country.

Samir Jasuja, Founder and Managing Director of Prop Equity, commented on the findings of the report: In the future, especially at the beginning of the festive season, you may see unit resizing, marketing-driven discounts, amenities, and special payment schemes that developers offer to boost demand. “

However, according to Ankushkaul, President of Ambience Group (Sales & Marketing), the suspension of real estate transactions in the second wave was temporary, and housing demand has recovered and is steadily increasing since June.

“We expect this trend to continue unless the third wave of COVID has a significant impact,” Kaul said.

The Ambience Group is engaged in real estate development business centered on premium development, mainly NCR.

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Second wave of COVID-19 hits housing demand, June quarter sales down 58%: Prop Equity

https://www.businesstoday.in/latest/top-story/story/covid-19-second-wave-hits-housing-demand-sales-drop-by-58-in-june-quarter-propequity-302960-2021-07-31?utm_source=rssfeed Second wave of COVID-19 hits housing demand, June quarter sales down 58%: Prop Equity

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