For residential genuine estate, the initially COVID-19 wave in 2020 had a significantly deeper effect than the second wave this year. ANAROCK information reveals that housing sales in Q2 2021 stood at approx. 24,570 units across the prime 7 cities, rising by 93% annually but dropping by 58% Q-o-Q.
As numerous as 12,740 units had been sold in the corresponding quarter of 2020, and 58,290 units in the preceding quarter (Q1 2021). MMR and Pune drove a huge share of housing sales in between April and June 2021 with a 46% share of the total sales.
Meanwhile, in spite of localized lockdowns and restrictions due to the second wave, developers launched new projects (mainly digitally) and place approx. 36,260 units on the industry across the prime 7 cities. Interestingly, Hyderabad is the frontrunner in all round housing launches with approx. 8,850 units launched in Q2 2021 – followed by MMR with 6,880 and Bengaluru with 6,690 units.
Notably, the premium spending budget category (priced in between Rs 80 lakh and Rs 1.5 crore) saw maximum new launches in the quarter with an 36% share. Next came the mid-variety segment (priced in between Rs 40 and Rs 80 lakh). Unlike in preceding quarters, economical housing accounted for just 20% of the new provide in Q2 2021.
Commenting on the identical, Anuj Puri, Chairman, ANAROCK Property Consultants, stated, “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.”
“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,” 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. The previously-noted 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,” Puri stated.
Q2 2021 Sales Overview
Close to 24,570 units had been sold in Q2 2021 across the prime 7 cities, against ~58,290 units in Q1 2021 – marking a decline of 58% Q-o-Q. NCR, MMR, Bengaluru, and Pune collectively accounted for 74% of the sales in this quarter. Compared to Q2 2020, housing sales improved by 93% in Q2 2021.
Q2 2021 New Launch Overview
The prime 7 cities saw about 36,260 new units launched in Q2 2021, as compared to 62,130 units in Q1 2021 – a lower of 42% Q-o-Q due to the 2nd COVID-19 wave. The Southern cities Hyderabad, Bengaluru and Chennai accounted for 51% of the total new launches in the course of Q2 2021. In Q2 2020, a mere 1,400 units had been launched across the prime 7 cities.
Unsold Inventory
Unsold inventory across the prime 7 cities improved by 2% in Q2 2021 more than Q1 2021 considering that new provide outpaced all round absorption numbers in this quarter. Unsold inventory improved from 6,41,860 units in Q1 2021 to approx. 6,53,540 units in Q2 2021. On a yearly basis, the all round unsold stock in the prime 7 cities improved by 3%. However, the two big realty hotspots – MMR and NCR – saw their unsold stock decline by 6% and 1%, respectively.
Price Movements
Due to the second COVID-19 wave, typical residential house rates across the prime 7 cities remained stagnant in Q2 2021 against the preceding quarter. On a yearly basis, Bengaluru and NCR saw the typical residential rates rise by 2%, even though MMR, Pune, Hyderabad and Chennai saw typical house rates boost by 1%. Kolkata saw no yearly alter in typical house rates.