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Housing market in 2020: Home sales drop 47% in top 7 cities; new launches fall 46%

Mumbai Metropolitan Region saw maximum yearly sales of 44,320 units, followed by Bengaluru with 24,910 units, although sales in both the regions declined over 40 per cent, compared to the last year's level

twitter-logoNiti Kiran | December 22, 2020 | Updated 23:47 IST
Housing market in 2020: Home sales drop 47% in top 7 cities; new launches fall 46%

The year-end data indicates that the top seven cities saw housing sales of approximately 1.38 lakh units, 47 per cent lower than 2.61 lakh units sold in 2019. ANAROCK's year-end housing market review states that while residential real estate bottomed out in 2020 against the previous peak of 2014, there are strong revival signs in Q4 2020 - with home affordability being at its all-time best.

"Amid varied offers and discounts, the top seven cities saw robust sales of nearly 50,900 units in Q4 2020, rebounding almost 86 per cent from the corresponding period in 2019. Last year, the festive quarter saw total home sales of 59,160 units," it said.

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The Mumbai Metropolitan Region (MMR) saw maximum yearly sales of 44,320 units, followed by Bengaluru with 24,910 units, although sales in both the regions declined over 40 per cent, compared to the last year's level.

Further, new housing supply in 2020 declined by 46 per cent against the preceding year - from 2.37 lakh units in 2019 to 1.28 lakh units now. MMR and Pune were the showstoppers in overall residential activity in 2020, the review added.

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On the supply front, the top cities added 52,820 units in Q4 2020 against 51,850 units in Q4 2019, increasing by 2 per cent, year-on-year. Hyderabad outpaced other cities and added a massive new supply of 12,820 units in the quarter, followed by MMR with over 11,910 new units, the report said.

Meanwhile, due to increased new launches across cities, unsold inventory declined by 2 per cent, from over 6.48 lakh units in Q4 2019 to over 6.38 lakh units in Q4 2020. However, in comparison to the peak levels of 2016 when unsold stock stood maximum at 7.91 lakh units in top 7 cities, it declined by a significant 19 per cent, it added.

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