Homesales pan-India up6% in Q2: PropEquity Study
July29, New Delhi:In a report released by PropEquity, India’s leading real estate data, research and analytics firm, sales or absorption of housing units increased by 6% across top 9 cities in India in the second quarter of 2019 to 61,789 units versus 58,292 units in Q2 2018.
New launches in the same time period also came down by 11% to just 51,108 units from 57,425 units. Hence the market shrunk in terms of new supply thus lowering the demand supply gap in this category.
The Indian real Estate market is currently end user driven and both ready projects and new launches (those launched from 2018 onwards) are selling well. It has been observed that developers who have launched projects from 2018 onwards have ensured the right ticket price by reducing the size. This is working well for the consumer as the projects are more affordable and when coupled with schemes such as interest subvention and low down payment plans etc. they become very attractive to the consumer.
“We have observed that new launches from reputed developers are receiving an encouraging response from the market. The consolidation and consequent shrinking of the market combined with the developers reducing the unit sizes to enhance affordability and boost volumes is working together in favour of sales. Thus absorption levels are going up, which is expected to continue as minimum demand for housing is pre-existing and we expect the demand to climb further,” Mr. Samir Jasuja, founder and managing director at PropEquity said.
Nine cities were included for the study including Gurgaon, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru, Thane and Chennai.
Gurgaon saw a jump of over100% on new launches in Q2 as launches that were held back in previous quarters were finally launched. Total new launches in Q2 stood at 5,232 units.
Noida also saw 100% hike in new launches as new projects were launched in the mid segment to take advantage of the improving market sentiment.
New launches witnessed amassive growth of 37% in Q2with absorptionincreasing by8% as compared to last year.
Kolkata saw a fall of 63% in new launches in Q2 with sales also crashing by 14%in YoY as this market witnessed declining housing demand.
This city witnessed a fall of 12% to 5,209 units in new launches in Q2 with sales also falling by 11% YoY.
India’s IT capital saw a fallof 15% in new launches in the quarter. The city with high-unsold stock of 95,045 units witnessed a decline of 7% in stock. Housing sales numbers jumped by 18%.
Pune saw a fall of 14% in new launches at 10,503 units in Q2. But absorption went up by 13% to 16,025 units indicating a healthy housing market, especially in mid-income segment.
Chennai saw a fall of 8% in new launches in Q2 at3,618 unitsbut sales increased by 15%.
Thane witnessed a fall of 31% in new launches in the quarter at 10,278 units, but absorption increased slightly by 2% in Q2.
P.E. Analytics owns and operates PropEquity which is an online
subscription based real estate data and analytics platform covering over 1,11,048
projects of 31,056 developers across over 44 cities in India. We add
approximately 300 projects every month. It is a premier Business Intelligence
product- a first of its kind in India in the Realty space.