MUMBAI: The housing sector will take another two years to reach its peak following the pandemic with the Mumbai Metropolitan Region (MMR) expected to record maximum sales and new launches in 2023, said Anarock Property Consultants.
“Of the total estimated housing sales and new launches in 2023, MMR is likely to comprise a 28% share of total sales and nearly 30% of new launches,” said Anarock, in its report on the housing market in the top seven Indian cities released on Thursday.
The residential sector could see a new peak only in 2023, but the levels of supply and sales will be unlikely those witnessed in 2014 anytime soon, the report said.
On the brighter side, 2021 is expected to witness an increase of 35% in housing launches and a 30% increase in sales over the previous year, it said. However, against the peak year of 2019, supply and sales may be lower by 28% and 31% respectively.
Anuj Puri, chairman of Anarock, said, “The residential sector was showing healthy year-on-year growth from 2017 until the latest peak year of 2019, but this trajectory was derailed by the Covid-19 pandemic. Otherwise, 2020 was expected to be a watershed year for the housing sector. While the second half of the year did showcase the remarkable resilience of Indian residential real estate, a new bottom for the sector was created in 2020 with housing sales plunging to nearly 1.38 lakh units while new launches dropped to 1.28 lakh units. 2020 is not a year that the industry is likely to forget very soon.”
The Anarock report said with the vaccination drive gaining significant momentum and spread of Covid-19 under better control for now, 2023 will very likely emerge as the new peak year that breaches 2019 levels. “Supply in 2023 will grow by 11% and sales by 22% over 2019,” it said. Housing market in the top seven cities is likely to attain a new peak by 2023, when sales are estimated to cross 3.17 lakh units and new launches by 2.62 lakh units during the year, said the report.
