The second wave of the COVID-19 pandemic has impacted the country's residential real estate sector, albeit much lesser than the first wave.
The housing sales during the April-June 2021 period stood at approximately 24,570 units across the top 7 cities, increasing by 93 percent annually but dropping by 58 percent in the January-March quarter.
According to Anarock Property Consultants' data, 12,740 units were sold in the corresponding quarter of 2020, and 58,290 units in the preceding quarter.
The Mumbai Metropolitan Region (MMR) and Pune drove a massive share of housing sales between April and June 2021 with a 46 percent share of the total sales.
"We saw the rising dominance of listed and leading developers whose sales share against the smaller and unorganised ones increased further in the quarter amid the second wave – from 40:60 previously to 43:57 now. Back in FY2017, the ratio was 17:83. The impact of the second wave was felt more intensely by smaller and unorganized players," said Anuj Puri, chairman - ANAROCK Property Consultants.
Meanwhile, despite localised lockdowns and restrictions due to the second wave, developers launched new projects (mostly digitally) and put approx. 36,260 units on the market across the top 7 cities.
Hyderabad was the frontrunner in overall housing launches with approximately 8,850 units launched in Q2CY21, followed by MMR with 6,880 and Bengaluru with 6,690 units.
Notably, the premium budget category (priced between Rs 80 lakh to Rs 1.5 crore) saw maximum new launches in the quarter with a 36 percent share. Next came the mid-range segment (priced between Rs 40-80 lakh). Unlike in previous quarters, affordable housing accounted for just 20 percent of the new supply in Q2 2021, as per the Anarock report.
"Restrictions are now easing across cities and the vaccination drive is gathering momentum. We, therefore, anticipate residential demand to see steady growth in the upcoming quarter," Puri said.
The previously-noted structural shift in housing demand continues - many current homeowners seek to upgrade to larger homes and the previously purchase-averse millennials remain very active property buyers, he added.
Approximately 24,570 units were sold in Q2 2021 across the top 7 cities, against 58,290 units in Q1 2021 – marking a decline of 58 percent QoQ. NCR, MMR, Bengaluru, and Pune together accounted for 74 percent of the sales in this quarter.
The top 7 cities saw around 36,260 new units launched in Q2 2021, as compared to 62,130 units in Q1 2021 - a decrease of 42 percent QoQ due to the second COVID-19 wave. The Southern cities Hyderabad, Bengaluru and Chennai accounted for 51 percent of the total new launches during the period. In Q2CY20, a mere 1,400 units were launched across the top 7 cities.
Unsold inventory across the top 7 cities increased by 2 percent to 6,53,540 units in Q2CY21 from 6,41,860 units in Q1CY21 since new supply outpaced overall absorption numbers in this quarter.
The two major realty hotspots - MMR and NCR - saw their unsold stock declined by 6 percent and 1 percent, respectively.
Due to the second COVID-19 wave, average residential property prices across the top 7 cities remained stagnant in Q2 2021 against the preceding quarter.
On a yearly basis, Bengaluru and NCR saw the average residential prices rise by 2 percent, while MMR, Pune, Hyderabad and Chennai saw average property prices increase by 1 percent. Kolkata saw no yearly change in average property prices.