Top 7 cities see housing sales drop nearly by half in 2020: Report

Housing sales in the top seven cities declined by 47% in 2020 compared with 2019, with sales coming in at about 1.38 lakh units against 2.61 lakh units in 2019. The Mumbai Metropolitan Region (MMR) saw maximum yearly sales of approximately 44,320 units, followed by Bengaluru with 24,910 units.

The new launches also fell by a sharp 46% during the year to about 1.27 lakh new units, against 2.36 lakh units launched in 2019, according to ANAROCK Property Consultants. Hyderabad was the only city to see new launches increase during the year by a good 42% at 21,110 units. The other key cities contributing to 2020 new unit launches were Mumbai Metropolitan Region, Pune and Bengaluru, which together accounted for 76% of the addition.

The unsold stock during the year fell by 2% from about 6.48 lakh units in 2019 end to around 6.38 lakh units as of 2020 end. Kolkata saw the maximum decline of 8% during the year, followed by Bengaluru and MMR that witnessed a decline of 6% each.

According to data for the last seven years, the unsold stock in the top seven cities was highest at the end of 2016 at approximately 7.90 lakh units. In comparison to this peak-level, unsold housing stock has declined by a significant 19%.

Anuj Puri, chairman, ANAROCK Property Consultants, said, “The year 2020 has been an unprecedented year due to Covid-19, causing all-round upheaval. However, the residential segment was quick to pick up momentum in the last two quarters of 2020 on the back of growing homeownership sentiment – catalysed by the exigencies of the pandemic.

“This pent-up demand was further accelerated by the ongoing discounts and offers, the prevailing lowest-best home loan interest rates and limited-period stamp duty cuts in states such as Maharashtra.”