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.
This upward growth in sales
and a significant dip of 11% YOY in unsold stock (It fell to 5,89,503 units in
Q2 2019 from earlier 6,62,362) is due to multiple factors.
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.
Cities
Gurgaon
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
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.
Mumbai
New launches witnessed amassive
growth of 37% in Q2with absorptionincreasing by8% as compared to last year.
Kolkata
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.
Hyderabad
This
city witnessed a fall of 12% to 5,209 units in new launches in Q2 with sales
also falling by 11% YoY.
Bengaluru
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
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
Chennai saw a fall of 8% in new launches in Q2 at3,618
unitsbut sales increased by 15%.
Thane
Thane witnessed a fall of 31% in new launches in
the quarter at 10,278 units, but absorption increased slightly by 2% in Q2.
About PropEquity:
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.
