Housing segment recovers in June: Report – ET RealEstate

BENGALURU: Housing sales and launches are seeing upward trends across top cities like Bangalore, Hyderabad and Mumbai with both demand and launches seeing higher growth.

“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.

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