Realty check: Property sales in Mumbai Metropolitan Region down by 45%, launches by 61%

According to a report by ANAROCK Property Consultants, only 30,290 units were launched this year as compared to 77,990 launches in 2019.

The Covid-19 lockdown has hit the real estate sector this year as both, the new launches as well as the sales of properties, have reduced drastically in the Mumbai Metropolitan Region (MMR).

In 2019, 80,870 properties were sold in MMR last year, which fell to 44,320 units this year. (HT FILE)

According to a report by ANAROCK Property Consultants, new project launches had reduced by a staggering 61% as only 30,290 units were launched this year as compared to 77,990 launches in 2019.

Similarly, the sales also came down by 45%. In 2019, 80,870 properties were sold in MMR last year, which fell to 44,320 units this year.

According to ANAROCK’s chairman Anuj Puri, it was an unprecedented year, with the pandemic causing an all-round upheaval.

“The ensuing lockdowns have caused the sector to come to almost a complete halt, with very few aspiring homebuyers making enquiries. Site visits were next to impossible, with buyers, developers and brokers uncertain of the [Covid-19] situation and remaining cautious. At the same time, all the development work came to a halt as migrant construction labourers made a beeline back to their hometowns. For a while, it seemed that Covid-19 was a death stroke to the sector,” said Puri.

Around 7 lakh-9 lakh on-site real-estate workforce in MMR had returned to their home states after Mumbai emerged as one of the worst-affected Covid-19 hot spots in the country in April.

His observations were backed by Nishant Deshmukh, managing director of real estate company Sugee Group. Deshmukh said it was one of the worst years for the realty sector. “It was a state of total paralysis,” he said.

Experts said the return of the workforce to their home states and the monetary crises faced by the builders owing to loss of sales acted as a dampener for the sector.

According to experts, the sales could have dipped further, but certain proactive steps such as reducing the stamp duty and cutting the interest rates gave some relief to the sector.

Puri said the past few months even witnessed an improvement in sales.

“The buyers were attracted by the ongoing discounts and offers, the prevailing lowest home loan interest rates and limited-period stamp duty cuts,” he said.

The Maharashtra government on August 26 had decided to reduce stamp duty from 5% to 2% until December 31. The stamp duty from January 1, 2021, to March 31, 2021, will be 3%. The revision in the stamp duty helped boost the sales, experts have said.