Home sales decline by 16% year-on-year in April-June quarter on account of COVID-19 second wave.

News Image

 

As many as 15,968 transactions were recorded across the key eight real estate markets in the April to June quarter, leading to home sales declining by 16 percent year-on-year during the three-month period while registering a 76 percent quarter-to-quarter fall, a report by online property brokerage firm PropTiger has said.

 

The second wave of the pandemic posed questions about the certainty of incomes, forcing homebuyers to put on hold their plans to invest in property despite the fact that a 15-year-low home loan interest rate currently made property purchase a sound financial proposition.

 

The economic uncertainty caused by the second wave of the coronavirus pandemic has forced real estate developers in India to adopt a more cautious approach towards spending, which is reflected in new supply numbers for the April-June period (Q2) of CY 2021.

 

According to the report titled Real Insight (Residential) – April-June (Q2) 2021, 45 percent of homes sold during the three-month period were priced up to Rs 45 lakh.

 

New supply, however, remained resilient amid the second wave, indicating a 74 percent surge year-on-year in the second quarter of 2021. Most of this supply came up in the month of April before the lockdowns were announced.