Property market unlikely to reach pre-Covid levels soon

Property market unlikely to reach pre-Covid levels soon
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Property market unlikely to reach pre-Covid levels soon

Highlights

As per Anarock’s latest report, housing sales may rise by 30% across seven major cities to 1.8 lakh units in this year from 1.4 lakh units last year

Hyderabad: The housing market across the top seven cities is expected to fare better than the previous year, but it is unlikely to reach the levels of 2019 - the most recent peak year, as per a recent report by property consultant Anarock. It anticipates housing sales to increase 30 per cent year-on-year (y-o-y) to 1,79,527 units in these cities during this year from 1,38,344 units last year.

The unprecedented rise in homeownership sentiment, faster adoption of technology and digital marketing, and innovative business practices have served to soften the overall impact of Covid-19 on the Indian residential sector. The consultant also estimated sales to further rise in 2022 and 2023 to 2,64,625 and 3,17,550 units, respectively.

"A new peak in 2023 notwithstanding, we are unlikely to see the levels of supply and sales witnessed in 2014 anytime soon," said Anuj Puri, Chairman - Anarock Property Consultants. "The residential sector was showing healthy year-on-year growth since 2017 until the latest peak year of 2019, but this trajectory was derailed by the Covid-19 pandemic."

"Otherwise, 2020 was expected to be a watershed year for the housing sector. While the second half of the year did showcase the remarkable resilience of Indian residential real estate, a new bottom for the sector was created in 2020 with housing sales plunging to nearly 1.38 lakh units while new launches dropped to 1.28 lakh units. 2020 is not a year that the industry is likely to forget very soon," he added.

According to Anarock's research, Mumbai Metropolitan Region (MMR) and Bengaluru are all set to lead from the front with maximum housing sales and new launches in 2023. MMR is likely to comprise a 28 per cent share of total sales and nearly 30 per cent of new launches. Bengaluru is estimated to have a 20 per cent share of homes sold and a 17 per cent share of units launched.

NCR may comprise an 18 per cent share of sales and 15 per cent of new launches. Hyderabad, Chennai and Kolkata may each account for approximately 6 per cent of sales and 8 per cent of new launches. Pune will retain its strength among the most active markets and may corner a 15 per cent sales share and 18 per cent new launches share.

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