New Home launches pan-India jumps 48 per cent in Q1
New Home launches pan-India jumps 48 per cent in Q1
Real Estate

New Home launches pan-India jumps 48 per cent in Q1

  • Unsold inventory dips by 2 per cent
  • Market to further improve
 
A report released by PropEquity reveals that new home launches jumped 48 per cent across top 9 cities in the first quarter of 2018 from 17,550 units to 25,970 units.
 
After several quarters, Q1 saw a significant jump in new launches as most of the developers were able to acclimatize themselves with RERA regulations and migration to GST compliances.
 
However, weighted average prices in the quarter fell 7 per cent from Rs 6,762 per sq ft to Rs 6,260 per sq ft, suggesting aggressive pricing by the developers to ignite homebuyers demand. 
 
“We expected the realty market to start stabilising Q1 onwards and this is what we are witnessing now. With this spurt of new launches in the first quarter of 2018, we expect the trend to continue with developers focussing on mid segment and affordable housing segment to take advantage of PMAY interest subsidy benefits. We continue to expect ready or about to be completed units to be sold more quickly than the newly launched units,” said Samir Jasuja, Founder & CEO, PropEquity.
 
The unsold inventory dipped by 2 per cent to 595,074 units from 608,949 units due to increased buyers interest. This was evident from an 8 per cent spike in units absorption to 40,694 units from 37,555 units in the quarter. 
 
Nine cities were included for the study including Gurugram, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru, Thane and Chennai.
Cities
 
Gurugram
Gurugram witnessed solid growth in Q1 as approximately 3,411 units were launched during the period, a jump of 156 per cent over QoQ.

 
However, absorption fell by 60 per cent as customers delayed their buying decisions for the next fiscal.
 
Noida
In Noida, few projects were launched and total units launched stood at 240 units, a decline of 55 per cent QoQ.
 
However, absorption increased on QoQ (31 per cent) as developers were clearing their earlier launched stock by offering discounts and offers.
 
Weighted Average Price stood at Rs 5,585 per sq ft, an increase of 3 per cent.
 
Mumbai
 
New launches witnessed drop on both QoQ (18 per cent) and YoY (49 per cent) basis.
 
Absorption increased by 12 per cent in QoQ as earlier launched units were being absorbed at attractive offers.
 
Kolkata
Q1 2018 witnessed a considerable jump in new launch activity compared to QoQ as it jumped 312 per cent to 2,149 units.
Absorption also increased by a healthy 16 per cent jump on QoQ basis.
Weighted Average Price of absorbed units stood at Rs 3,602 per sq ft, increasing by 2.4 per cent from the previous quarter.

Hyderabad
New launch activity in Q1 2018 witnessed a 54 per cent fall to just 800 units on QoQ basis. 
Absorption also witnessed a dip of 11 per cent.
However, Weighted Average Price stood jumped by 9 per cent at Rs 4,270 per sq ft, which indicates that the majority of the unsold units are in the affordable and mid segments.

Bengaluru
The city gained some solid traction in Q1 as approximately 9,557 units were launched during the period, a jump of 173 per cent over QoQ.
 
Absorption also witnessed a solid change on QoQ basis and was increased by 45 per cent showing trends of uptick in demand as developers ramped up their marketing and sales activities.

Pune
The city witnessed a muted growth in new launch activity with a drop of just 1 per cent in QoQ.
Weighted Average Price of available stock stood fell by 7 per cent at Rs 4,773 per sq ft, which indicates that the majority of the unsold units are in the mid segment.

Chennai
Chennai saw a massive jump of 240 per cent in new launch activity in the Q1 as 2,095 units were launched which is significant as Chennai market was lagging behind others for a long time.
Absorption witnessed a sizeable jump of 71 per cent on QoQ as demand rose to significant levels. Weighted Average Price stood at Rs 5,112 per sq ft a jump of 6 per cent, which indicates that the majority of the unsold units are in the mid segment.

Thane
Q1 2018 witnessed a dip in new launch activity by 27 per cent on QoQ basis. Absorption also witnessed a considerable drop of 6 per cent as buyers interest remained weak.
Weighted Average Price stood at Rs 5,625 per sq ft, a drop of 8 per cent in QoQ.

See the full report here.

Unsold inventory dips by 2 per cent Market to further improve  A report released by PropEquity reveals that new home launches jumped 48 per cent across top 9 cities in the first quarter of 2018 from 17,550 units to 25,970 units.   After several quarters, Q1 saw a significant jump in new launches as most of the developers were able to acclimatize themselves with RERA regulations and migration to GST compliances.   However, weighted average prices in the quarter fell 7 per cent from Rs 6,762 per sq ft to Rs 6,260 per sq ft, suggesting aggressive pricing by the developers to ignite homebuyers demand.    “We expected the realty market to start stabilising Q1 onwards and this is what we are witnessing now. With this spurt of new launches in the first quarter of 2018, we expect the trend to continue with developers focussing on mid segment and affordable housing segment to take advantage of PMAY interest subsidy benefits. We continue to expect ready or about to be completed units to be sold more quickly than the newly launched units,” said Samir Jasuja, Founder & CEO, PropEquity.   The unsold inventory dipped by 2 per cent to 595,074 units from 608,949 units due to increased buyers interest. This was evident from an 8 per cent spike in units absorption to 40,694 units from 37,555 units in the quarter.    Nine cities were included for the study including Gurugram, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru, Thane and Chennai. Cities   Gurugram Gurugram witnessed solid growth in Q1 as approximately 3,411 units were launched during the period, a jump of 156 per cent over QoQ.   However, absorption fell by 60 per cent as customers delayed their buying decisions for the next fiscal.   Noida In Noida, few projects were launched and total units launched stood at 240 units, a decline of 55 per cent QoQ.   However, absorption increased on QoQ (31 per cent) as developers were clearing their earlier launched stock by offering discounts and offers.   Weighted Average Price stood at Rs 5,585 per sq ft, an increase of 3 per cent.   Mumbai   New launches witnessed drop on both QoQ (18 per cent) and YoY (49 per cent) basis.   Absorption increased by 12 per cent in QoQ as earlier launched units were being absorbed at attractive offers.   Kolkata Q1 2018 witnessed a considerable jump in new launch activity compared to QoQ as it jumped 312 per cent to 2,149 units. Absorption also increased by a healthy 16 per cent jump on QoQ basis. Weighted Average Price of absorbed units stood at Rs 3,602 per sq ft, increasing by 2.4 per cent from the previous quarter. Hyderabad New launch activity in Q1 2018 witnessed a 54 per cent fall to just 800 units on QoQ basis.  Absorption also witnessed a dip of 11 per cent. However, Weighted Average Price stood jumped by 9 per cent at Rs 4,270 per sq ft, which indicates that the majority of the unsold units are in the affordable and mid segments. Bengaluru The city gained some solid traction in Q1 as approximately 9,557 units were launched during the period, a jump of 173 per cent over QoQ.   Absorption also witnessed a solid change on QoQ basis and was increased by 45 per cent showing trends of uptick in demand as developers ramped up their marketing and sales activities. Pune The city witnessed a muted growth in new launch activity with a drop of just 1 per cent in QoQ. Weighted Average Price of available stock stood fell by 7 per cent at Rs 4,773 per sq ft, which indicates that the majority of the unsold units are in the mid segment. Chennai Chennai saw a massive jump of 240 per cent in new launch activity in the Q1 as 2,095 units were launched which is significant as Chennai market was lagging behind others for a long time. Absorption witnessed a sizeable jump of 71 per cent on QoQ as demand rose to significant levels. Weighted Average Price stood at Rs 5,112 per sq ft a jump of 6 per cent, which indicates that the majority of the unsold units are in the mid segment. Thane Q1 2018 witnessed a dip in new launch activity by 27 per cent on QoQ basis. Absorption also witnessed a considerable drop of 6 per cent as buyers interest remained weak. Weighted Average Price stood at Rs 5,625 per sq ft, a drop of 8 per cent in QoQ. See the full report here.

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