Housing sales down 18% in Mumbai during Q3 of 2019-20
Despite a slew of measures, housing sales across the country’s nine major real estate markets – including Mumbai – fell by 30 percent during the third quarter of this fiscal year, a PropTiger report has said.
In its ‘Real Insight Q3FY20’ report, the News Corp-backed company said housing sales across nine cities fell 30 percent during the October-December quarter despite the government launching several measures to revive buyer sentiment.
Only 64,034 homes were sold across the nine markets in Q3 this year in comparison to 91,464 units sold during the quarter last year, the report said.
Further, sales in the residential property market fell 13 percent to 2,63,294 units during the first nine months of this fiscal as against 228,220 units in the corresponding period of the previous year.
The nine markets in consideration are Ahmedabad, Bengaluru, Chennai, Gurugram, Hyderabad, Kolkata, Mumbai (including Thane & Navi Mumbai, Pune, and Noida.
“The various measures launched by the government in the recent past to revive growth in the real estate market seem to have made little impact,” said Dhruv Agarwala, Group CEO of Elara Technologies that owns Housing.com, Makaan.com, and Proptiger.
“Considering real estate is a major contributor to overall gross domestic product (GDP), which hit a glacial 4.5 percent rate of growth in the July-September period, we expect further assistance from the government, which would nudge buyers to invest in real estate,” he added.
According to the data, Bengaluru saw a maximum decline in sales, which fell by 50 percent to 5,155 units. Hyderabad saw a 44 percent dip in sales at 4,372 units, followed by Pune that witnessed a 39 percent fall at 11,946 units.
Housing sales in Noida declined 38 percent to 2,830 units, Chennai and Kolkata, both cities, reported 33 percent fall at 3,015 units and 2,566 units, respectively.
Housing sales in Mumbai dropped by 18 percent to 25,198 units and 14 percent in Ahmedabad at 5,118 units. Gurugram remained the least affected, with 6 percent dip in sales to 3,834 units during the October-December quarter of 2019-20 fiscal year.
PropTiger report also mentioned that unsold inventories declined by 3 percent during the third quarter at 7,97,723 units from 7,74,860 units at the end of September 2019.
“At the current sales velocity, builders would take 29 months to sell off the existing stock,” it added.