Housing unit launches slump 54% in Q1 FY22

According to a survey by PropEquity, a real estate data, research, and analytics organisation, housing unit launches decreased by 54% in the April-June quarter to 34,053 units, down from 74,196 units in the previous quarter.There was a drop of 65% in Bengaluru, 66% in Chennai, 65% in Hyderabad, 30% in Kolkata, 52% in MMR, 55% in NCR and 38% in Pune.At the same time, as India bore the brunt of the COVID-19 second wave in April and May, sales or absorption fell by a staggering 58%.As a result of the nationwide lockdown, home registrations were suspended, as was the slow pace of home loan disbursals. Samir Jasuja, founder and managing director at PropEquity cites that the country may see resizing of units, marketing-driven discounts, amenities, and special payment schemes offered by developers to boost demand, particularly during the holiday season.Home sales fell by 65% in Bengaluru, 66% in Chennai, 65% in Hyderabad, 30% in Kolkata, 52% in Mumbai Metropolitan Region (MMR), 55% in National Capital Region, and 38% in Pune.In the second quarter, sales or absorption of housing units in the major cities of the country increased by 51% to 45,208 units up from 29,942 units in Q2 of the previous year.Home sales went up by 33%, 65%, 138%, 14%, 38%, 98% and 39% in Bengaluru, Chennai, Hyderabad, Kolkata, MMR, NCR, and Pune, respectively.Home sales were severely impacted in Q2 as India attempted to manage the second wave of Covid-19 across the country by imposing strict lockdowns, according to Ankush Kaul, President (Sales & Marketing) of the Ambience Group.This caused a brief halt in real estate transactions. However, from June onwards, housing demand has recovered and is steadily increasing at impressive rates.This trend is expected to continue as long as the third wave of covid-19 does not have a significant impact, she added.Image SourceAlso read: Housing sales fall by 58% in 2021: PropEquity