Housing sales in April-June may rise 93 pc compared to year-ago period

Sales of residential properties stood at 12,740 units in April-June 2020 and 58,290 units in March quarter 2021.
For representational purposes.  (Photo | Pexels.com)
For representational purposes. (Photo | Pexels.com)

NEW DELHI: Housing sales are estimated to rise 93 per cent year-on-year during April-June across seven major cities, but may fall 58 per cent compared to the previous quarter due to the adverse impact of the second wave of COVID-19, according to property consultant Anarock.

Sales are likely to be around 24,570 units across seven major cities -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad and Pune, Anarock said.

Sales of residential properties stood at 12,740 units in April-June 2020 and 58,290 units in March quarter 2021.

Anarock released the data of housing sales and launches a week before the end of the current quarter. When asked about the reason for release of data in advance, Anarock did not reply.

PropTiger, Knight Frank India, PropEquity release their data after the end of every quarter. JLL India, of late, is also releasing the data before quarter ends.

"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," Anarock Chairman Anuj Puri said.

Importantly, the localized lockdowns and restrictions did not dent activity as much as the complete nationwide lockdown last year, he added.

"Restrictions are now easing across cities and the vaccination drive is gathering momentum. We, therefore, anticipate residential demand to see steady growth in the upcoming quarter," Puri said.

The structural shift in housing demand continues - many current homeowners seek to upgrade to larger homes and the previously purchase-averse millennials remain very active property buyers, he said.

According to the data, housing sales in MMR are likely to jump over two-fold at 7,400 units in April-June against 3,620 units in the year-ago period. However, sales may drop by 64 per cent from 20,350 units in March quarter of 2021 calendar year.

Pune is likely to witness housing sales of around 3,790 units in April-June 2021 against 2,160 units in the corresponding quarter last year. Demand is likely to fall 64 per cent from 10,550 units sold in January-March 2021.

Sales of residential properties in Delhi-NCR may rise by 65 per cent to 3,470 units in June quarter 2021 against 2,100 units in the corresponding period last year. On sequential basis, sales may drop by 61 per cent from 8,790 units in first quarter.

In Bengaluru, housing sales are likely to rise 19 per cent to about 3,560 units in April-June 2021 as compared to 2,990 units a year ago. On a quarter-on-quarter basis, sales in the city may decline 59 per cent from 8,670 units in January-March 2021.

Housing sales in Hyderabad are expected to jump to 3,240 units in second quarter of 2021 as compared to 660 units a year ago. The demand is seen lower by 26 per cent from 4,400 units sold in March quarter 2021.

In Chennai, about 1,590 units are likely to be sold in April-June 2021 as against 480 units in the corresponding period last year. Sales may fall 44 per cent from 2,850 units in January-March 2021.

Housing sales in Kolkata are expected to jump more than two-fold at 1,520 units in April-June 2021 from 730 units in the year-ago period. On sequential basis, demand may fall by 43 per cent from 2,680 units in the previous quarter.

Unsold inventory across the top 7 cities may increase by 2 per cent in June quarter 2021 to about 6,53,540 units over the previous quarter since new supply outpaced overall absorption numbers in this quarter.

Due to the second COVID-19 wave, average residential property prices across the seven cities remained stagnant in April-June 2021 against the preceding quarter.

On a yearly basis, Bengaluru and NCR saw the average residential prices rise by 2 per cent, while MMR, Pune, Hyderabad and Chennai saw average property prices increase by 1 per cent. Kolkata saw no yearly change in average property prices.

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