Housing sales see 20% quarterly dip as real estate sector's woes continue

Hyderabad was the worst impacted among the major cities, registering a drop of 26 percent in the quarter. Chennai and Kolkata were the least impacted with a decline of 12 percent.

Anuj Puri, the chairman of Anarock Property Consultants, said the decline was on expected lines since the consumers as well as builders continue to remain risk averse.

“The decline in new supply and housing sales in this quarter was expected as both homebuyers and developers remained cautious and risk-averse,” he said.

Finance minister Nirmala Sitharaman has announced a string of measures over the past few months, including a cut in corporate tax rates, and Puri feels that the central government’s initiatives will lift the pall of gloom afflicting the real estate sector in the country.

“The slew of economy-boosting measures by the government to spur growth across sectors will very likely give the housing sector a leg-up in the festive season and the ensuing quarters,” said Puri.

He added: “As evidenced by the quick revival of the stock markets, these measures have already bolstered all-round sentiment. Housing is intensely sentiment-driven and we expect the numbers to improve significantly going forward. Most importantly for the sector, we are seeing a gradual revival of investor confidence. The recent corporate tax cut will spur investments from both domestic and foreign investors — the real need of the hour.”