The second wave of COVID-19 was not as bad for the real estate sector as the first, said Anuj Puri, chairman of Anarock, on Thursday. Puri also said that the real estate market is getting consolidated and Q1 was worse for unorganised players. However, there has been no decline in home prices.
Speaking in an interview with CNBC-TV18, he said, “The second wave was very bad as far as health was concerned but it’s coming out for various economies and even on the real estate front, it wasn’t as bad. Therefore, when compared with Q1 of 2020, Q1 of 2021 is 93 percent ahead of sales while Q1 of 2020 was a washout.”
According to him, Hyderabad, Bengaluru and Chennai accounted for 51 percent of the total new launches. “This does show that the residential sales remain strong, but it’s remained strong only for the large unlisted developers and the leading listed developers. It hasn’t been strong for everyone. Under construction, if it’s not a good developer, we are finding it difficult to sell stock. So, I do feel the market is getting, very quickly, consolidated and you are going to see a lot of larger players becoming even larger,” said Puri.
He further added that while unsold realty inventory has risen in Q1FY22, Mumbai Metropolitan Region (MMR) and National Capital Region (NCR) saw unsold inventory coming down by 6 percent and 1 percent respectively.
On pricing, Puri said, “On a ready to move in inventory, we have seen a price increase; it depends on the city to city, but on an average, it’s between 5 percent and 7 percent. We have seen an increase because there has been a lot of demand for near completion, which means six months towards completion – that’s where we have seen price rise otherwise it has largely been static, but certainly, we have not seen any downward trend in the pricing.”
For more details, watch the video.