- Home buying sentiment improved as public sector banks and private players slashed home loan interest rates to a 15-year low. This, along with resumption of construction work, helped take the enquiries up by 80 percent of the pre-COVID times. Developers reported a 50 percent recovery in the number of transactions.
- The resale segment remained under pressure with deals closing at a 2-5 percent discounted rate on average. Developers also kept new unit prices unchanged even as some spoke of increased costs amid a ban on Chinese imports. However, initial speculations of hefty price corrections did not hold true for either of the segments.
- Rental market remained in doldrums despite the opening up of the nationwide lockdown. Tenants avoided moving as the majority of offices continued with the work-from-home model. Resultantly, the rental rates did not see any movement and offtake was meek in both residential and commercial segments.
- With an addition of over 31,000 units in metro cities, new launches went up by 4.5 times, QoQ. The resale segment, too, reported an improvement as several property owners returned to the market after lockdown restrictions were gradually lifted. Unsold inventory stood at 4.40 lakh units at the end of September 2020.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
The gradual recovery in the Indian residential sector, post the COVID-19 outbreak, was evident from the sale of about 33,000 units in Jul-Sep 2020; 2.5 times of the sales reported in Apr-Jun 2020, i.e. 9,700 units. Mumbai and Delhi led other metro cities in terms of sales volume and constituted about 29 percent and 22 percent of the total transactions, respectively.
The quoted property prices remained unchanged across cities. However, with offers, discounts and negotiations on the table, transactions closed at a corrected price of about 2-5 percent on an average. The worst affected were Chennai and Delhi NCR, which bore the brunt of a high disparity in demand and supply. Bangalore and Hyderabad were the only markets that sustained prices amid the pandemic and the resultant economic downturn due to the dominance of end-users and a favourable demand-supply equation.
With the markets opening up around mid-June, a few developers launched new projects, while the majority focussed on completing and liquidating their ongoing projects. New launches went up by 4.5 times with the addition of around 31,000 units this quarter, as against 5,500 units in the previous quarter. Homebuyers, however, remained cautious of under-construction projects to minimise the risk in their investments. Ready or near-ready units garnered maximum traction.
Unsold inventory dipped by a meagre one percent, YoY, and stood at 4.4 lakh units at the end of September 2020. In the ensuing quarter, the festive season and the competitive home loan interest rates are expected to be the major propellers for the market.