Mumbai : Bad news for the real estate sector in the state capital, Mumbai as it witnessed a 62 per cent decline in housing sales and an 85 per cent drop in new launches from April to June this year following COVID-19 outbreak.
According to a Delhi-based survey agency that analysed data for nine top cities, said the sales or absorption of housing units dropped by 66 per cent across top 9 cities from 62,851 units in Q1 of 2020 to 21,294 units in Q2 2020. Similarly, the new supply or launches of housing units also decreased by 81% during the same period from 63,535 in Q1 to 11,967 units in Q2 as developers hardly launched any new projects due to the COVID-19 restrictions.
As per the report of the agency, sale of real estate in Mumbai city declined from 5,774 units sold in first quarter of 2020 to 2,206 units in the second quarters. In comparison with 6017 units sold in second quarter of 2019, the drop was 63 per cent year on year.
In another report of an independent agency pointed out that the dip in sales was the lowest half-yearly sales recorded in the last five years. Besides, the rate of real estate is a 20 per cent lower than last year’s prices because of slow economy in the wake of COVID-19 pandemic.
Faced with no movement in sales for the past four-odd months due to the lockdown and Covid-19 issues, property developers are resorting to price cuts across Mumbai’s main residential markets. Mumbai’s property markets, where prices earlier crossed Rs one-lakh a sq ft, are seeing a 20-25 per cent markdown today from last year’s level. This is probably the biggest decline in the past decade.