Corona to severely impact housing and office sales

“Given the high chance of USA economy suffering due to Covid-19 impact, its negative effect will be felt in India with a drop in office space leasing” Anarock Research

Current estimates reveal a substantial drop in demand and supply across various real estate segments in 2020 in the wake of the corona pandemic.

Housing sales could witness a 25-35 percent yearly drop in 2020 against the preceding year, reveals a report by Anarock Property Consultants.

Residential sales in 2019 stood at about 2.61 lakh units across top 7 cities and may now fall between 1.70 lakh - 1.96 lakh units.

Likewise, new launches may also witness a 25-30 percent decline during the same period – from 2.37 lakh units in 2019 to anywhere between 1.66 lakh -1.78 lakh units, the report revealed.

Key findings

Housing sales to see 25-35 percent y-o-y fall in 2020; new launches by 25-30 percent

Unsold housing inventory to remain stable, may even see 1-3 percent yearly reduction

Construction delays could run into several months for well-funded projects, few years for others; 4.66 lakh units to be previously completed by 2020-end face high risk of delays

Affordable housing target group most affected, limited income & unemployment fears to defer purchase decisions

Indian office sector to see significant impact by Covid-19; besides demand-supply decline, key occupiers to re-look office space requirements

Indian retail leasing and new mall completions to see 30-50 percent dip against previous growth estimates; revenue-sharing model to gain dominance

Technology to gain significant precedence in Indian real estate from 2020 onwards