Housing sales fall 9%, new supply down 10% in Oct-Dec on economic slowdown

Housing sales fell 9 per cent during October-December across nine cities to 60,453 units due to economic slowdown and liquidity crisis, according to a report.

Housing brokerage firm PropTiger recently reported 30 per cent fall in sales in nine cities during October-December quarter. However, during 2019 calendar year, realty consultants Knight Frank India and Anarock mentioned that sales rose by one per cent and 5 per cent, respectively.

"The absorption witnessed a dip of 9 per cent as compared to the same period last year and new launches have dropped by 10 per cent on a year-on-year basis. The downtrend observed was mainly due to economic slowdown and liquidity crisis in the market," PropEquity said in its Q4 report.

The nine cities tracked by PropEquity are Mumbai, Thane, Bengaluru, Kolkata, Chennai, Noida, Gurugram, Pune and Hyderabad.

"Residential real estate continues to be an end user driven market as ready to move-in or nearing completion properties are being preferred. Consumers are now looking for developers with excellent track records in terms of quality and execution," it added.

According to the data, housing sales in Pune declined 9 per cent during October-December period to 15,453 units as compared with the year-ago period.

Thane and Hyderabad saw 16 per cent fall at 11,933 units and 4,643 units, while Bengaluru and Mumbai witnessed 12 per cent dip each at 10,263 units and 5,996 units respectively.

Housing sales in Chennai too dropped 14 per cent to 3,632 units.

However, Kolkata saw sales rising by 26 per cent to 4,743 units. Housing sales in Gurugram rose by 19 per cent to 2,175 units and Noida by 20 per cent to 1,615 units.

"We expect markets to recover in 2020 and also expect government to announce positive measures in the forthcoming budget, said Samir Jasuja, founder and managing director at PropEquity.

PE Analytics owns and operates PropEquity, which is an online real estate data and analytics platform covering over 1,18,010 projects of 34,217 developers across 44 cities.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel