“After two years of steady demand, the home sales in top eight cities of India declined by a significant 54% YoY to a decadal low of 59,538 units during H1 2020 with sales mostly concentrated in the first quarter of calendar year,” the report said.
In India eight major cities have faced a vast decline in the first six months of year, low in housing unit sales and Knight Frank India report said.
On the office market front, transactions in the first half of 2020 fell by a massive 37 percent YoY to 17.2 million sq ft — the steepest fall in a decade. New completions this year fell by 27 percent YoY, the Knight Frank India’s flagship half-yearly report ‘India Real Estate’ said.
The groundbreaking interruption caused by on-going pandemic caused by Coronavirus, stalled the economy in Q2.
The lockdown resulted in a complete shutdown of all activity in the real estate industry and caused sales to fall a massive 84 per cent year-on-year to 9,632 units in Q2 while sales of 49,905 units were reported in Q1.
The number of new home launches recorded in Q1 was 54,905 units whereas the number saw a sharp drop to 5,584 units in Q2.
NCR, Chennai and Hydrabad are near zero sales during this period.
Office transactions declined 37% year-on-year—the steepest in a decade—to 17.2 million sqft in the first half of the year, the report said. New completions were lower by 27% over the previous year at 17.3 million sqft.
Yet, the weighted average rental for the eight cities grew 4% year-on-year to Rs 83 per sq ft/ month.