News: Housing sales in Q3 of 2019 saw a quarterly decline of 18% across top 7 cities: Report-30-09-2019
Updated On: Sep 30, 2019
The top 7 cities also recorded a 13% y-o-y drop in new unit launches, with 45,230 units launched in the Q3 2019 as against the same period last year.
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BENGALURU: Housing sales and new launches declined across top seven cities in the country due to ongoing ‘shradh’ period - seen as inauspicious in many parts of the country – coupled with the ban on the subvention schemes.
According to ANAROCK Research, residential sales in Q3 2019 saw a quarterly decline of 18% across the top 7 cities - from 67,140 units in Q3 2018, with the sharpest fall seen in Bengaluru and Hyderabad.
“The decline in new supply and housing sales in this quarter was expected as both homebuyers and developers remained cautious and risk-averse. The slew of economy-boosting measures by the government to spur growth across sectors will very likely give the housing sector a leg-up in the festive season and the ensuing quarters, ” said Anuj Puri, Chairman – ANAROCK Property Consultants.
According to the research, Bengaluru and hyderabad saw 35% and 32% drop in housing sales with 10,500 and 3,280 units sold during the third quarter of 2019 as compared to the same period last year. Other cities, including MMR and Delhi-NCR, saw a decline of 6% and 13% decline in residential sales at 9,830 and 17,180 units respectively.
The top 7 cities also recorded a 13% y-o-y drop in new unit launches, with 45,230 units launched in the Q3 2019 as against the same period last year, with Hyderabad and Chennai contributing to the maximum fall at 51% and 48% each, mentioned the report.
”Housing is intensely sentiment-driven and we expect the numbers to improve significantly going forward. Most importantly for the sector, we are seeing a gradual revival of investor confidence. The recent corporate tax cut will spur investments from both domestic and foreign investors – the real need of the hour, ” said Puri.
Hyderabad witnessed new launches of 2,050 units and Chennai at 2,530 units launched on a y-o-y basis. However other markets like NCR and Bengaluru bucked the trend with 38% and 31% jump in new launches in the Q3 2019 as compared to the same period last year, mentioned the ANAROCK Research.
The recent Govt. sops is expected to boost sentiment at onset of festive season; housing sales may increase in upcoming quarters. Traditionally, the festive quarter fares better than the previous quarters of the year when it comes to housing sales -- the combination of religious sentiment and festive deals and freebies is a potent mix during this part of the year.
