Houses Worth about Rs 88,730 Crore Were Sold in the Top-7 Cities in January-September.
According to a report, Overall sales value in 2020 is highest in MMR (Rs 49,313 crore) followed by Bengaluru (Rs 12,569 crore) and NCR (Rs 9,430 crore); Upcoming festive season to see more homebuyers back on the market.
Affected by the COVID-19 pandemic, the top-seven cities saw homes selling for about Rs 88,730 crore in the first three quarters of 2020, compared to around Rs 1,54,320 crore in the same period of 2019. This is about a 43% percent drop. The total value has decreased by about Rs 65,590 crore during this period.
Between January and September, approx. 87,460 units were sold in about seven cities. A year ago 2.02 lakh units were sold. However, quarterly numbers indicate that the worst is over for the residential sector.
In the third quarter of 2020, the value of home sales increased by about 2.3 times to nearly Rs 29,731 crore – up from Rs 12,694 crore in the preceding quarter. The first quarter of 2020 saw home sales of about Rs 46,306 crore.
In the coming festive quarter (October-December), the value of home sales will increase due to increased demand from financial plans and proposals.
Meanwhile, by city wise, MMR topped the first three quarters of 2020 with sales of Rs 49,313 crore. On an annual basis, the total selling price of MMR declined by 22 percent – from Rs 62,964 crore in 2019 to Rs 49,313 crore this year. But, interestingly, compared to the period of 2018 – when MMR recorded sales of Rs 47,242 crore – it became the only city to see this growth (of 4%).
In the first nine months of 2020, Bengaluru had a sales value of Rs 12,569 crore, compared to Rs 28,159 crore in the 2019 period. The report stated that between January and September 2020, the city saw sales of about 17,020 units.
The housing sale price in NCR was around Rs 9,430 crore in the first nine months of 2020, while it was Rs 24,860 crore in 2019 – registering a 62 percent annual decline. The total housing units sold this year were lower than Bengaluru, compared to 15,450 units.
Pune saw housing sales of Rs 8,692 crore in the first nine months of 2020 as against Rs 17,524 crore in 2019. This year, the total number of units sold in three quarters is 14,200 units. Hyderabad saw housing sales of Rs 3,116 crore in the period as against Rs 9,391 crore in 2019. The total units sold in the three quarters are about 4,980 units. The report said that Chennai had sales of Rs 2,977 crore in the three quarters of 2020, up from Rs 5,575 crore in 2019. The city sold about 4,280 units by 2020.
For the third quarter of 2020, sales soared. Despite the ongoing epidemic, end-users are taking advantage of the lowest property prices and historically low home loan rates and financial plans offered by developers.
The housing sales price in the top 7 cities collectively rose to Rs 29,731 crores in QE 2020 from Rs 12,694 crore in the previous quarter – a significant Q-O of 134 percent over Rs 46,306 crore in the pre-Kovid-19 quarter. Cue jump.
Chennai housing sales value increased by nearly 3.3 times – from Rs 316 crore in the second quarter of 2020 to over Rs 1,039 crore in the third quarter of 2020. This was followed by a 157 percent jump in the sale price of NCR, from Rs 1,263 crore in the second quarter of 2020 to Rs 3,246 crore in the third quarter. MMR saw 16,500 crore homes sold in the third quarter of 2020 – an increase of 145 percent, compared to Rs 6,748 crore in the previous quarter. The report said that Bengaluru sold homes worth Rs 3,989 crore in the third quarter of 2020, compared to Rs 2,205 crore in the previous quarter.
“As expected, the second quarter was lacking given the lockdown and overall pressure in the economy. What is notable is how the third quarter stacked up, clearly indicating that buyer sentiment was in place and only uncertainty. Was held in the Gulf. Now there is every reason to look forward to the upcoming festive season with confidence – homebuyers are back in the market, ”said Anuj Puri, President – Anarkock Property Consultants.