Residential Sales See 20% Quarterly Drop In Q3 2019: ANAROCK Report

residential real estate
residential real estate

Indian residential real estate sector seems to unable to stand back at its feet despite several sops from the government. As per a recent report, buying in housing sector in India has dropped by 20 percent quarter-on-quarter basis.

The drop is one of the sharpest and worst slumps the sector has ever witnessed. As per a report by Anarock, the top 7 cities saw 55,080 units sold in Q3 2019 against 68,600 units in Q2 2019, seeing yearly decline recorded at 18 per cent over Q3 2018.

The ‘shraadh’ period, a period in which it is considered inauspicious to make any major purchase, usually witness a marginal dip every year. This year, the ban on the subvention schemes has evidently compounded the quarterly dip in residential segment.

The liquidity crisis is also the reason behind the slow movement in the real estate sector. The supply side has a similar story to tell. New launches were also impacted, falling from 69,020 units in Q2 2019 to 45,230 units in Q3 2019, seeing a 13 per cent y-o-y decline from 52,130 units in Q3 2018.

Interestingly, out of total supply, 41 per cent new supply of Q3 2019 came from affordable segment, where demand seems to be improving. About 36 per cent supply came from mid-segment which is in the range of ₹40-80 lakh.

Due to dip in the launches, inventory has gone down but only marginally. Overall, unsold stock as on Q3 2019 stood at 6.56 lakh units across the top 7 cities, declining by a meagre 1 per cent against the preceding quarter. However, developers were able to shed their overall unsold stock by at least 5 per cent during the year which stood at 6.87 lakh units back in Q3 2018.

Maximum unsold stock of 5 percent has been shed by Hyderabad. Prices remained more or less stagnant across the top cities.

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