“With June being the first month of Unlock 1.0 in India, activity in the housing space marks encouraging recovery,” said a recent report by Edelweiss Research.
Demand plunged 68% QoQ in Q2CY20; however, the sharp recovery witnessed in May (up 52% MoM) and June (up 71% MoM) is a harbinger of hope. Supply plummeted 82% On q-o-q basis during the quarter; however, it improved sharply in June, it mentioned.
According to the report, new launches during June 2020 grew 8.9x MoM on a low base, but were down 49% YoY. “Bengaluru accounted for 39% of launches during the quarter, followed by MMR (24%) and Pune (23%); while other markets together contributed the remaining 15%. On the demand front, MMR contributed 40% of the absorption with Pune (22%) and Bengaluru (13%) coming next,” the report mentioned.
Prices during June bounced back 7–11% YoY in Chennai, Bengaluru and MMR, but slid in Kolkata and Hyderabad (down 5–8% YoY). YTD average prices rose in Bengaluru and Chennai by 6–7% YoY, but corrected 4% YoY in MMR and Kolkata. Prices in other markets remained in a narrow range, it mentioned.
Hyderabad and Pune remained the best markets with 22-23 months of inventory, followed by Chennai and Bengaluru at 37-38 months. NCR remains the worst real estate market with 71 months of inventory; inventory levels in MMR and Kolkata were 40 months and 44 months, respectively.