The year 2020 has been an unprecedented one for all of us, with the Coronavirus pandemic-induced lockdowns pushing major economies, including India, into a technical recession. Greens shoots of revival are, however, visible, with the pace of growth contraction slowing down to 7.5% in the third quarter of CY 2020, as against a -23.9% contraction in the second quarter.
This is also reflected in the high-frequency indicators such as the Manufacturing Purchasing Managers’ Index (PMI), Services PMI, power demand, fuel consumption, rail freight collections and GST collections inching back to the pre-COVID levels towards the end of 2020.
In sync with these revival cues, supply and demand in the residential real estate market are scaling back to the pre-pandemic levels in the final quarter of 2020, as relief measures taken by both, the central and state governments, have given a much-needed boost to the slackened market sentiments during the festive season. Although the sector’s revival seems imminent against the backdrop of an improving business environment, the market sentiment remains understandably cautious as it awaits the rollout of the COVID-19 vaccine in India.
All-India highlights
- Festive boost in the final quarter has seen housing sales grow by 173% over the previous quarter, while Mumbai and Pune claim the lion’s share in overall sales.
- With 54,330 launched in Q4, new supply is inching towards pre-COVID levels, registering a 12% YoY increase in Q4 2020; Hyderabad contributed the most to the fresh supply.
- In 2020, 2BHK units were the most preferred, with 45% units sold in this configuration; 24% sales were recorded in 3BHK configuration.
- Share of the ready-to-move-in properties reached 21% in overall sales in 2020, compared to 18% in 2019.
- Unsold stock declines 9% YoY; nearly 55% of this stock is concentrated in Mumbai and Pune.
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