Mumbai: realty sector hit: Dip in sales, new launches

The Covid-19 second wave has badly hit the real estate sector of the Mumbai Metropolitan Region (MMR), as both, the sales, as well as new project launches, were greatly impacted, revealed a half-yearly report by a real estate consultancy firm, on Thursday

The Covid-19 second wave has badly hit the real estate sector of the Mumbai Metropolitan Region (MMR), as both, the sales, as well as new project launches, were greatly impacted, revealed a half-yearly report by a real estate consultancy firm, on Thursday.

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According to Knight Frank, the second wave impacted the sales figures as 4,855 housing units were sold from April to June, compared to 23,772 units in the first three months of 2021.

Similarly, in the case of new launches, 4,747 new units were launched compared to 31,035 units in the MMR from January to March 2021.

“We witnessed the worst second quarters (April to May), both in 2020 and 2021, for the real estate sector,” said Shishir Baijal, chairman and managing director, Knight Frank India. “The first three months of 2021 saw huge sales due to the stamp duty cuts and also cuts in interest rates,” he added.

This year, April to June was the peak of the second wave and in view of the surge in Covid-19 cases, the Maharashtra government imposed a lockdown across the state.

Paras Gundecha, chairman and managing director, Gundecha Group, said, “There is a possibility of the third wave. In such a scenario, buyers have postponed their buying plans.”

The real estate sector has been facing a slowdown for several years and the pandemic has only made matters worse. The government in August last year announced its decision to reduce stamp duty levied on sales of apartments to 2% from September 1 till December 31, 2020, and then hike it to 3% from January 1 till March 31, 2021. The move played a significant role in boosting sales of both primary and secondary markets. The state, however, refused to extend it despite several requests.