In a report released by PropEquity, among India’s leading real estate data, research and analytics firm, it said that new launches of housing units increased by 3 per cent across top 9 cities in India in the first quarter of 2019 to 42,504 units versus 41,101 units in Q4 2018.
This small but critical rise in new launches indicate that developers across India are now beginning to launch new projects as well as clearing earlier launched projects.
In Q1, unsold Stock also dipped by 4 per cent vs Q4 and 10 per cent YoY owing to improving end-user demand.
On sequential quarter basis, sales (absorption) fell by 6 per cent but was up by 5 per cent YoY. Yearly jump indicates that the sales may continue to improve for rest of the year.
Indian real Estate market is currently an end user driven market as ready to move in or nearing completion properties are being preferred as they have minimum or no risk attached to them.
“It has been a wonderful beginning for Indian realty as finally new home launches have gathered pace. Also, with beneficial announcements for the real estate in the budget, we can witness further push to housing demand, especially in the affordable and mid-income segment. Branded and large developers with good fundamentals are expected to do well this year,” said Samir Jasuja, Founder and Managing Director, PropEquity.
Nine cities were included for the study including Gurugram, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru, Thane and Chennai.
Gurgaon saw a decline of 58 per cent jump on new launches in Q1 as new launches were held back for the quarter. Absorption saw an increase of 11 per cent to 2918 units in QoQ period as ready inventory was first to go off the shelf.
Noida saw 73 per cent hike in new launches as new projects were launched in the mid segment to take advantage of the improving market sentiment.
New launches witnessed a fall of 1 per cent in QoQwith absorption also falling by10 per cent.
Kolkata saw a fall of 36 per cent in new launches in Q1 with sales also crashing by 20 per cent in QoQ as this market witnessed declining housing demand.
This region saw the maximum jump in new launches with 100 per cent hike in at 3,026 units launched. Overall absorption fell by 19 per cent in Q1as supply was more than the demand in the quarter.
India’s IT capital saw a marginal fall of 1 per cent in new launches in the quarter. The city with high-unsold stock of 94,979 units saw a decline of 4 per cent in unsold stock.
Pune saw a jump of 4 per cent in new launches at 9,287 units in Q1. Absorption also went up by 3 per cent at 14,996 units indicating a healthy housing market.
Chennai also saw a jump of 11 per cent in sales in Q1 at 2,862 units.
Thane witnessed a massive jump of 40 per cent in new launches in the quarter at 9,427 units, but absorption fell by 14 per cent in Q1. Unsold stock fell by 3 per cent to 133,751 units in the quarter.