Housing sales in India's top cities declined by 47% to 1.38 lakh units, says a report
In 2019, overall sales across the major cities was nearly 2.61 lakh units.
The new housing supply in 2020 declined by 46% against the preceding year, nearly 2.37 lakh units in 2019 to nearly 1.28 lakh units in 2020.
"While residential real estate bottomed out in 2020 against the previous peak of 2014, there are strong revival signs in Q4 2020 - with home affordability being at its all-time best," said the report.
Amid varied offers and discounts, the top seven cities saw robust sales of nearly 50,900 units in Q4 2020, rebounding to nearly 86% of the corresponding period in 2019.
On the supply front, the top cities added 52,820 units in Q4 2020 as against 51,850 units in Q4 2019, increasing by 2% Year-On-Year (YoY). Hyderabad outpaced other cities and added a massive new supply of 12,820 units in the quarter, followed by MMR with more than 11,910 new units.
Due to increased new launches across cities, unsold inventory declined by 2% on a yearly basis, from more than 6.48 lakh units in Q4 2019 to more than 6.38 lakh units in Q4 2020. However, in comparison to the peak levels of 2016, when unsold stock stood maximum at nearly 7.91 lakh units in the top seven cities, it declined by a significant 19%.
He said this pent-up demand was further accelerated by the ongoing discounts and offers, the prevailing lowest-best home loan interest rates and limited period stamp duty cuts in states such as Maharashtra.
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