<p>The impact of COVID-19 could result into a substantial decline across the real estate sector and the sale of residential houses could witness a 25-35% yearly drop in 2020 in seven major cities of India, including Bangalore, compared to last year, says a new report.</p>.<p> The nationwide lockdown has completely halted construction activity - project delays could run into several months for well-funded projects, and a couple of years for others. Nearly 4.66 lakh units across the top 7 cities earlier slated for completion in 2020 now face a high risk of delays, property consultant Anarock said in its report on Thursday.</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-news-live-updates-andhra-pradesh-reports-24-new-positive-cases-indias-tally-crosses-1800-817763.html" target="_blank"><strong>Follow live updates of coronavirus here</strong></a></p>.<p> According to the report, the affordable housing segment, which gained significant traction over the last few years, may also take a hit by COVID-19. With limited income and unemployment fears, buyers of affordable housing may defer purchase decisions, leading to an estimated 1-2% rise in unsold stock within this segment in 2020.</p>.<p>The sales of residential houses in 2019 stood at approximately 2.61 lakh units across the top 7 cities, which may fall between 1.70 lakh -1.96 lakh units.</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-india-update-state-wise-total-number-of-confirmed-cases-deaths-on-april-2-820272.html" target="_blank"><strong>Track state-wise confirmed coronavirus cases here</strong></a></p>.<p>The new launches could also be impacted to the tune of up to 30% from 2.37 lakh units in 2019 to anywhere between 1.66 lakh -1.78 lakh units, according to the report.</p>.<p> Residential sales in the top seven cities, including Bangalore, have already dropped in the January-March quarter this year by 24% to 45,200 units compared to the same quarter last year.</p>.<p> "Unsold inventory in 2020 will largely remain stable, with a single-digit annual decline of around 1-3%. The nationwide lockdown has completely halted construction activity - project delays could run into several months for well-funded projects, and a couple of years for others. Nearly 4.66 lakh units across the top 7 cities earlier slated for completion in 2020 now face a high risk of delays," it further said.</p>.<p> COVID-19 has derailed the office segment's growth trajectory of the last three years, it said.</p>.<p> Current estimates suggest office supply will remain between 33-40 mn sq ft in 2020 as against nearly 47 mn square feet. in 2019 - a reduction of 15-30%. Net office absorption in 2020 is expected to drop to between 28-35 mn sqft from the last year’s 40 mn sq. ft. - a drop of 13-30%.</p>
<p>The impact of COVID-19 could result into a substantial decline across the real estate sector and the sale of residential houses could witness a 25-35% yearly drop in 2020 in seven major cities of India, including Bangalore, compared to last year, says a new report.</p>.<p> The nationwide lockdown has completely halted construction activity - project delays could run into several months for well-funded projects, and a couple of years for others. Nearly 4.66 lakh units across the top 7 cities earlier slated for completion in 2020 now face a high risk of delays, property consultant Anarock said in its report on Thursday.</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-news-live-updates-andhra-pradesh-reports-24-new-positive-cases-indias-tally-crosses-1800-817763.html" target="_blank"><strong>Follow live updates of coronavirus here</strong></a></p>.<p> According to the report, the affordable housing segment, which gained significant traction over the last few years, may also take a hit by COVID-19. With limited income and unemployment fears, buyers of affordable housing may defer purchase decisions, leading to an estimated 1-2% rise in unsold stock within this segment in 2020.</p>.<p>The sales of residential houses in 2019 stood at approximately 2.61 lakh units across the top 7 cities, which may fall between 1.70 lakh -1.96 lakh units.</p>.<p><a href="https://www.deccanherald.com/national/coronavirus-india-update-state-wise-total-number-of-confirmed-cases-deaths-on-april-2-820272.html" target="_blank"><strong>Track state-wise confirmed coronavirus cases here</strong></a></p>.<p>The new launches could also be impacted to the tune of up to 30% from 2.37 lakh units in 2019 to anywhere between 1.66 lakh -1.78 lakh units, according to the report.</p>.<p> Residential sales in the top seven cities, including Bangalore, have already dropped in the January-March quarter this year by 24% to 45,200 units compared to the same quarter last year.</p>.<p> "Unsold inventory in 2020 will largely remain stable, with a single-digit annual decline of around 1-3%. The nationwide lockdown has completely halted construction activity - project delays could run into several months for well-funded projects, and a couple of years for others. Nearly 4.66 lakh units across the top 7 cities earlier slated for completion in 2020 now face a high risk of delays," it further said.</p>.<p> COVID-19 has derailed the office segment's growth trajectory of the last three years, it said.</p>.<p> Current estimates suggest office supply will remain between 33-40 mn sq ft in 2020 as against nearly 47 mn square feet. in 2019 - a reduction of 15-30%. Net office absorption in 2020 is expected to drop to between 28-35 mn sqft from the last year’s 40 mn sq. ft. - a drop of 13-30%.</p>
