Housing Sales Down 18% in Q1 FY22
Second wave of COVID-19 hit housing sales with tier I cities recording an 18 percent decline in sales at 57,093 units in the June quarter (Q1 FY 21-22) from the previous quarter when the sales were 69,691 units, an analysis by Liases Foras has suggested.
Consolidated tier 1 cities’ unsold stock marginally declined by 1% on a quarter-on-quarter basis and 6% on a year-on-year basis. The current unsold across the top eight cities stands at 905,531 units with 48 months of inventory overhang, per the Residential Real Estate Market Report Q1 2021-22. Prices remained stagnant in tier I cities on QoQ and increased 2% on a YoY basis.
On a quarter-on-quarter basis, Tier I cities had recorded sales of 57,093 units in the June quarter (Q1 FY 21-22) which is an 18% decrease compared to last quarter when the sales were 69,691 units. However, on a year-on-year basis, overall sales across tier I cities increased by 116%. Sales witnessed maximum recovery in Bengaluru by 201%, followed by MMR (134%), Hyderabad (127%), Chennai (121%), Pune (119%), Ahmedabad (79%), NCR (64%), and Kolkata (56%) on YoY basis.
On a quarter-on-quarter basis, sales in NCR decreased in the quarter by 30%. The maximum loss in sales was witnessed in Faridabad at 48%, while in Bhiwadi, deals stayed low at 260 units. Maximum sales occurred in Gurugram and Greater Noida. Unsold stock reduced in all suburbs except Noida where it rose by 2%. On a year-on-year basis, sales witnessed a 64% Increase in NCR. All suburbs showed a significant amount of growth in sales when compared on a YoY basis. Unsold stock shrunk in Bhiwadi by (-15%) and Gurgaon by (- 14%), respectively, while it increased in Faridabad by 15%.