Media Room
Industry News
National Realty e-Magazine

Industry News

Select a year 

JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember                Back

Pune: Ten-day total lockdown a hurdle on recovery path of real estate
The Times of India  |  July 31, 2020

Satyanarayan Iyer PUNE

The real estate market seemed to be emerging just out of what was the worst downturn in its history, seasoned realtors said.


The registration of houses and land was down 28% in June as against the month last year. This was an improvement over May 2020, which recorded a year-on-year decline of over 75%.


July 2020 was showing an improvement over June 2020 in terms of sales and the price commanded for each realty unit or land sold. However, the 10-day total lockdown imposed from July 14 put a spanner in recovery of the sector that draws in over Rs 1,200 crore of development premium to the Pune and Pimpri Chinchwad civic bodies. With two business days to go, July 2020 might see a trend similar to June 2020 despite the fact that the major markets, such as Pune and Pimpri Chinchwad, were in a total lockdown for 10 days of the month.


The per day registration fell to 2,300 in July, due to the 10-day lockdown in Pune and Pimpri Chinchwad municipal corporation limits, as against 2,700 a day in June. Over 110 properties are registered a day in two jurisdictions. “No lockdown can stop the spread of the virus. Nut the economy will certainly be under lockdown for a long time,” said Atul Chordia, director, Panchsil Realty.


There is a preference for only ready-to-occupy stock as investors and end users are looking at projects they feel will keep them out of risk. As a consequence, all the properties under construction are not even getting requisite enquiries.


“Ready-to-occupy homes are selling like hot cakes, but they are only about 10%-15% of the inventory available for sale. The lockdown has stalled the real estate industry, as many workers have left and very little activity is possible with the in-situ workers. That is not how the sector works,” said a Pune-based realtor, who has a few lakh square feet under construction.


It is not just the new houses. Even the old homes are being sought at throw-away prices as those with margin money see this as an opportunity to graduate from rented accommodation to owning a house.


“There are a lot of deals in the pipeline, but people are expecting it at a low cost. For example, a one BHK house which quoted Rs75 lakh in the Kothrud area in January 2020 is being now negotiated at Rs 55-60 lakh,” said Sattar Sayyad, Pune-based property consultant and founder of Ashiyana Real Estate. Most brokers are unanimous that it all depends on how desperate the sellers are to make a deal about their properties.