New home launches declined 42% in April-June, sales down 58%


New Delhi, Jun 24 (IANS): As the second wave of Covid-19 and lockdowns across states impacted economic activities, housing launches decline 42 per cent on a quarter-on-quarter (QoQ) basis in the April-June quarter, according to a report by Anarock Property Consultants.

The top seven cities saw around 36,260 new units launched in Q2 2021, as compared to 62,130 units in Q1.

Hyderabad is the frontrunner in overall housing launches with around 8,850 units launched in Q2 2021 - followed by MMR with 6,880 and Bengaluru with 6,690 units.

Hyderabad, Bengaluru and Chennai accounted for 51 per cent of the total new launches during Q2, 2021.

Further, sales also plummeted during the quarter. Around 24,570 units were sold in Q2 2021 across the top seven cities, against 58,290 units in Q1 2021 marking a decline of 58 per cent Q-o-Q. NCR, MMR, Bengaluru, and Pune together accounted for 74 per cent of the sales in this quarter.

However, compared to Q2 2020, housing sales increased by 93 per cent in Q2 2021.

Around 12,740 units were sold in the corresponding quarter of 2020, and 58,290 units in the preceding quarter (Q1 2021). MMR and Pune drove a massive share of housing sales between April and June 2021 with a 46 per cent share of the total sales.

Anuj Puri, Chairman of Anarock Property Consultants said: "The second Covid-19 wave definitely impacted overall residential property market activity in the second quarter this year when juxtaposed against the preceding quarter. However, compared to the corresponding period of 2020, the sector displayed remarkable resilience."

To the backdrop of developers adopting technology in their businesses, there was a huge yearly jump in both new launches and sales. Importantly, the localized lockdowns and restrictions did not dent activity as much as the complete nation-wide lockdown last year, he noted.

"Additionally, we saw the rising dominance of listed and leading developers whose sales share against the smaller and unorganized ones increased further in the quarter amid the second wave -- from 40:60 previously to 43:57 now. Back in FY2017, the ratio was 17:83. The impact of the second wave was felt more intensely by smaller and unorganized players," Puri said.

 

  

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Title: New home launches declined 42% in April-June, sales down 58%



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