Reportedly India's real estate sector is going through a serious crisis due to the economic shock triggered by coronavirus crisis. Housing sales have plunged over 80 per cent in the second quarter of 2020 in comparison to the figure in the corresponding quarter last year, according to research conducted by ANAROCK Property Consultants.
Meanwhile the real estate consultant said housing sales have plunged to a “new low” across India’s top seven cities in Q2 2020. The latest research conducted by ANAROCK revealed that residential sales in the quarter plummeted by 81 per cent in top cities from 68,600 units in Q2 2019 to just 12,720 units in Q2 2020. New launches have suffered even more with a 98 per cent dip in the second quarter with merely 1,390 units getting launched. These new launches are just part of four projects two in bengaluru and one each in pune and Kolkata.
When commenting on the weak outlook, ANAROCK Chairman Anuj puri said, “A massive drop in both new launches and housing sales were, of course, expected on the back of a complete lockdown for most of this quarter.” While most experts believe that price cuts in real estate can be negotiated on a case-to-case basis, the real issue that the sector is facing is lack of demand. They also believe that only a proper revival of the economy, especially in terms of urban jobs, can boost prospects of the sector.
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