Not just slowdown, Indian homes sales are brought down by 'Shraadh' custom and heavy rains
- India’s real estate market witnessed a 20% quarterly drop in housing sales across seven cities, according to
ANAROCK Property Consultants.
- The new launches also fell by a third of the total launches during the second quarter — from 69,020 units to 45,230 units.
- Among the seven cities, Hyderabad saw a major decline in housing sales at 26%.
Mumbai Metropolitan Region(MMR) and Bengaluru recorded maximum sales at 17,180 and 10,500 units, respectively.
As per the report, housing sales slumped from 68,600 units in the second quarter of 2019 to 55,080 units in the third.
This may be attributed to the failed site visits due to heavy rainfall, ban on subvention schemes and the ongoing ‘shraadh’ period — which is considered inauspicious in some parts of the country. Also called Pitru Paksha, this period which lasts for 12-15 days is when Indians pay homage to their deceased ancestors and do not make any purchases during the period.
Due to the slowdown, Indian builders are holding back new launches. They fell by a third of the total launches during the second quarter — from 69,020 units to 45,230 units. While on year-on-year basis, the housing sales declined by 18%.
“The decline in new supply and housing sales in this quarter was expected as both homebuyers and developers remained cautious and risk-averse. The slew of economy-boosting measures by the government to spur growth across sectors will very likely give the housing sector a leg-up in the festive season and the ensuing quarters,” said Anuj Puri, Chairman of ANAROCK Property Consultants.
Among the seven cities, Hyderabad saw the most decline at 26%. On the contrary, Kolkata witnessed sales of 3,120 units, with the least decline in sales. It also registered a 19% rise in new launches during the third quarter — at 3,130 units.
Mumbai Metropolitan Region (MMR) and Bengaluru recorded maximum sales at 17,180 and 10,500 units, respectively.
“Housing is intensely sentiment-driven and we expect the numbers to improve significantly going forward. Most importantly for the sector, we are seeing a gradual revival of investor confidence. The recent corporate tax cut will spur investments from both domestic and foreign investors – the real need of the hour,” Puri explained.
However, the demand for affordable housing continues to rise, accounting for over 40% of the total new launches during the third quarter.
Luxury housing rebounds in India with almost three times more launches after two years
Property prices in three big Indian cities may fall due to millions of jobs lost in the auto sector
Get ready to shell out ₹56,000 per square foot if you want to stay in Mumbai’s Tardeo area