Mumbai News

Housing sales decline in Mumbai, Thane by 62-66 per cent: Report – Mumbai Mirror

Due to COVID-19 impact, Mumbai witnessed a 62 per cent decline in housing sales and an 85 per cent drop in new launches in the April to June quarter of 2020, said a new report by Propequity, the Delhi-based real estate data, research and analytics firm.

The report, which analysed data for nine top cities, said the sales or absorption of housing units dropped by 66 per cent across top 9 cities from 62,851 units in Q1 of 2020 to 21,294 units in Q2 2020. Similarly, the new supply or launches of housing units also decreased by 81% during the same period from 63,535 in Q1 to 11,967 units in Q2 as developers hardly launched any new projects due to the COVID-19 restrictions.

The report said for sales in Mumbai city declined from 5,774 units sold in first quarter of 2020 to 2,206 units in the second quarters. In comparison with 6017 units sold in second quarter of 2019, the drop was 63 per cent year on year.

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The report counted Thane as a separate city and said the decline was even sharper at 65 per cent in Thane from 17,114 units sold in Q1 of 2020 to 5,999 units sold in Q2 of 2020. Launch of new units also dropped by 88 per cent in Thane from 18,601 units launched in Q1 to 2,257 in second quarter.

“These are unprecedented times for the world economy and India is one of the hardest hit countries due to COVID-19 epidemic. Real estate sector, which was slowly coming up by March, was hit with a complete halt in construction and sales activities by March last week,” said Samir Jasuja, founder and managing director at PropEquity said.

He said only larger developers with low debt leverage would be better placed to ride out the storm. “We may witness resizing of units, discounts, amenities and special payment schemes to be offered by developers to create demand, especially during the upcoming festive season,” he said.