Res­i­den­tial launches rise 76%: KFI

DNA (Delhi) - - PROPERTY -

Knight Frank In­dia re­cently launched the 10th edi­tion of its flag­ship half-yearly re­port - In­dia Real Es­tate. It states that the res­i­den­tial mar­ket saw some up­ward move­ment in sales ve­loc­ity, but the year stopped short sig­nif­i­cant re­cov­ery. To­tal sales of res­i­den­tial units were es­ti­mated to be 242,328 reg­is­ter­ing a 6% in­crease over full year 2017.

Res­i­den­tial mar­ket high­lights for top eight cities: Na­tional Cap­i­tal Re­gion (NCR), Mum­bai, Bengaluru, Hyderabad, Chen­nai, Ahmed­abad, Pune, Kolkata

2018 marks the first time in this decade when an­nual launch num­bers have grown Y-o-Y.

The to­tal new units launched in full year 2018 are es­ti­mated to be 182,207, which were higher by 75% as com­pared to the to­tal units launched in 2017.

H2 2018 saw a to­tal of 89,500 (ap­prox­i­mately) new unit launches which was 119% up com­pared to H2 2017.

60% of all launches were within the Rs. 50 lakh bracket that most de­vel­op­ers are con­cen­trat­ing on the af­ford­able and mid–ranged seg­ment. Mum­bai (38,390 units), Pune (18,580 units), Bengaluru (11,830 units) saw the high­est new unit launches in full year 2018.

Mum­bai saw the high­est Y-o-Y growth of 220%, while Pune recorded a nearly 157% in­crease. A fullfledged RERA in both these cities in Ma­ha­rash­tra, cou­pled with the re­prieve from dump­ing ground ban in Mum­bai, fa­cil­i­tated the growth in new launches.

Most mar­kets recorded mod­er­ate growth in prices. Mum­bai prices fell by 7% while Hyderabad prices vaulted by 7% Y-o-Y in 2018. Pune (-3%), Kolkata (-4%) and Chen­nai (-3%) recorded a mod­er­ate cor­rec­tion in ask­ing prices. NCR (+2%), Bengaluru (+2%) and Ahmed­abad (+1%) mean­while saw prices in­crease marginally. An im­prov­ing reg­u­la­tory en­vi­ron­ment, re­duc­ing prices, in­di­rect dis­counts and an in­creas­ing in­fu­sion of res­i­den­tial prod­ucts that are more in tune with the home­buyer’s pref­er­ences have cul­mi­nated in a 6% Y-o-Y growth in sales dur­ing 2018. Sales vol­ume in full year 2018 was es­ti­mated at 242,328 units. Bengaluru saw the high­est an­nual in­crease in sales by 27% Y-o-Y in 2018, rid­ing on the back of eco­nomic sta­bil­ity and job se­cu­rity. Even the NCR saw sales im­prove by 8% Y-o-Y in 2018, on the back of stronger sales trac­tion in Noida and Greater Noida.

Kolkata (-10%) saw a de­cline in sales in full year 2018 over 2017.

The to­tal un­sold in­ven­tory lev­els have re­duced at the end of 2018 and are es­ti­mated to be 468,372 units which were lower by 11% since end of 2017 and close to 30% lower than 2016.

Shishir Bai­jal, Chair­man and Manag­ing Di­rec­tor, said, “The res­i­den­tial mar­ket in 2018 recorded a re­cov­ery after seven years, which has been led by the af­ford­able seg­ment. In­cen­tives from gov­ern­ment such as lower GST rates and in­fra­struc­ture sta­tus to af­ford­able hous­ing have fu­elled the de­mand for the sec­tor. The sup­ply side has ac­cord­ingly cal­i­brated it­self in this pe­riod. Hav­ing said that, the NBFC cri­sis cre­ated a liq­uid­ity crunch in the sec­ond half of 2018, which re­stricted sales, par­tic­u­larly in Mum­bai and NCR in H2 2018.”

"The mar­kets will re­main in a cau­tious mode due to the up­com­ing gen­eral elec­tions and the after-ef­fects NBFC cri­sis through most of the first half of 2019. On the pos­i­tive side, the an­tic­i­pated down­ward re­vi­sion of GST on un­der con­struc­tion houses should pro­vide a boost to the buyer sen­ti­ment. This, cou­pled with stable in­ter­est rates and in­fla­tion re­main­ing largely un­der con­trol, should lead to in­creased ve­loc­i­ties in the sec­ond half of 2019. The fo­cus is ex­pected to con­tinue in the af­ford­able seg­ment,” he added.

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