Residential sales plummet by 22% in H2

Residential sales plummet by 22% in H2

Representative image. (Photo credit: Getty images)

Demand in the residential projects plunged in the second half of the year 2019, with housing sales seeing a slump of 22% compared to sales in the first six months of the year, according to a report by property consultants Anarock that was released on Wednesday. 

According to the report, the slump in the second quarter was noticed in the top seven cities in the country, even though net sales increased 5% to 2.61 lakh units this year against 2.48 lakh units in 2018. Out of the total sales, H1 comprised a massive 56% share. On the supply side also, a slump of about 30% was seen in H2 as compared to H1. 

On the supply front, of the total 2.37 lakh units launched in 2019, H2 saw new addition of over 97,000 units as against 1.4 lakh units in the first half, thus seeing a half-yearly decline of 30%. However, on a yearly basis, there was a 21% rise in new supply this year. 

In terms of numbers, the Mumbai Metropolitan Region recorded the highest jump in sales this year by about 22% - from 66,440 units to 80,870 units, on the back of an increase in new launch supply. Pune sales also rose by 18% - from 34,460 units to 40,790 units. However, sales in Bengaluru decreased by 12% - from 57,540 units last year to 50,450 units. Sales in Kolkata & Hyderabad decreased by 11% each and recorded sales of  13,930 units and 16,590 units respectively. 

 Anuj Puri, Chairman – ANAROCK Property Consultants says, “The unrelenting liquidity crisis, lower-than-expected buyer sentiments and faltering GDP growth eventually put brakes on the overall housing growth in the second half of 2019. However, among the top cities, MMR and Pune were clearly the showstoppers of residential real estate as they recorded housing sales rise of 22% and 18% respectively, leaving Bengaluru (which saw sales fall 12% yearly) behind. Both cities collectively saw residential sales of nearly 1.22 lakh units as against 78,860 units in all cities in the south(Bengaluru, Chennai and Hyderabad) and 46,920 units in NCR in the north.”

He stated that in terms of new launches, MMR and Pune came out on top with annual increases of 30% and 89% respectively. Among the top seven cities, MMR saw maximum new launches during the year at 78,000 units while Pune was second best at over 46,100 units.

 Looking ahead at the new year, he pointed out, “ Residential growth in 2020 will mainly depend on the swift on-ground implementation of some of the previously-announced sops such as the real estate sop of Rs 25,000 crore.”

According to him, if these steps are not taken, it may negatively impact the sector with buyer sentiments derailing more.  On the other hand, if implemented on time., these measures will yield a positive impact on the Indian real estate in the coming year. “A major part of the residential growth will most likely unfold in the second half of 2020. The financially stronger players will stay ahead in the game,” said Puri. 

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