Housing supply to go up by 20% to 25%: Report
The last quarter of this year is expected to witness at least a 20% to 25% jump in the residential new supply across cities. However, capital and rental values are expected to remain more or less stable, says a report.
High unsold inventory will remain a major problem, stagnating the growth of the residential market in top cities, says a report by Quikr-Homes.
As per the market segmentation, affordable and mid-segments are likely to lead the show in the coming quarter as well, it says.
MMR witnessed maximum launches and accounted for nearly 23% of the total units in the third quarter, followed by National Capital Region (NCR), Pune and Bengaluru with about 22, 19 and 16% respectively.
Kolkata and NCR witnessed a whopping 157% and 81% increase, respectively in the new launch supply as against the second quarter in 2016, says the report.
As per the research, affordable properties clearly dominated the property spectrum across cities. Nearly 59% projects were launched under affordable segment, followed by mid, luxury and ultra-luxury.
Unsold units in top cities touched all-time high at 7.5 lakh units. The data also suggests that most of the sales are happening in either ready-tomove-in projects or projects that are nearing completion.
The rental scenario in Bengaluru, Hyderabad and Chennai have recorded an upward movement in their respective regions of growth.
Additionally, there has been a huge restructuring in the residential markets Kolkata and Pune due to increased IT and ITeS activity. The trend of adjusting the residential rental demand along the satellite townships (Navi Mumbai and Thane re gions in Mumbai and Gurgaon and Noida along with Ghaziabad in Delhi-NCR) have also been noted in NCR (Delhi) and MMR (Mumbai), says the report.
Unsold units in top cities touch all-time high at 7.5 lakh.