Economic uncertainty caused by the second wave of the coronavirus pandemic has forced property developers in India to take a more cautious approach to spending, which is reflected in the new supply figures for the April-June period. (Q2) of 2021, said a PropTiger report.
A total of 21,839 new units were launched in these markets from April to June, down 59% from January to March launches.
However, compared to the same period last year, new launches show a 74% increase.
“This remarkable increase in launches in Q2 compared to the same period of the previous year could be explained by the fact that for a long period of Q2CY2020, India continued to remain under a nationwide lockdown which adversely affected the economy, forcing Asia’s third-largest economy to slip into recession in 2020,” the report said.
“This forced the country’s cash-strapped homebuilders to exercise a high degree of caution from April to June 2020,” he said.
With most states announcing relaxations in travel movements amid a drop in the number of new daily infections, June saw a pick-up in demand in real estate, the PropTiger.com report showed.
According to the report titled Real Insight (Residential) – April-June (Q2) 2021, half of the sales in the April-June 2021 quarter took place in June itself, as states began to open up and close restrictions.
While demand and supply remained negatively affected in the first two months of the quarter, a period when most states remained partially in lockdown to contain the spread of the virus, home sales and new launch numbers were began to rise in June, with the gradual lifting of restrictions, it showed.
“Due to the difficult situation during the April to June quarter of 2021, when infections and deaths caused by the coronavirus peaked before decreasing towards the end of May, demand and supply were affected at the during the first two months when most states have put in place imposing various restrictions and lockdowns to curb the spread of the virus,” said Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com.
However, some double-digit ground was covered during June when states began to open up, he added.
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