2.75 lakh ready homes to hit top 7 cities by 2020-end
- Approximately 13.1 lakh units are in various stages of construction (launched since 2014) in top 7 cities; 21 per cent to be delivered by 2020-end
- Nearly 1.13 lakh ready-to-move supply to be in the affordable category, 33 per cent in the mid-segment; only 10 per cent in luxury
- NCR to see highest RTM stock with over 68,070 units; Chennai least with 10,860 units
- MMR and Pune to collectively see over 1.01 lakh ready-to-move homes; IT hubs Bengaluru and Hyderabad nearly 55,000 units
- With overdue projects attracting RERA penalties, emphasis will be on timely delivery.
The top 7 cities may see nearly 2.75 lakh new ready-to-move (RTM) homes over the next one year, provided developers stay on schedule. There are currently 13.1 lakh units, launched between 2014 to Q3 2019, in various stages of construction in the top 7 cities. Nearly 21 per cent are to be delivered by 2020-end.
Among the top 7 cities, NCR will see maximum RTM supply with 68,070 units, and Chennai the least at about 10,860 units.
Out of the total projected ready supply:
- Over 41 per cent (nearly 1.13 lakh) units will be in the affordable segment (priced below Rs 40 lakh)
- 33 per cent (approx. 90,770 units) will be in the mid-segment (Rs 40-80 lakh price range)
- 16 per cent in the Rs 80 lakh - 1.5 Crore budget range
- Only 10 per cent in the luxury and ultra-luxury segments.
Anuj Puri, Chairman, Anarock Property Consultants, says, "RERA is gaining stronger ground in most states and many of these projected 2.75 lakh units are likely to be completed on time by December 2020. Delhi-NCR may see some projects delayed by a few months due to the construction ban. Also, developers are keenly aware that ready-to-move homes are in greatest demand and will spare no effort in completing their projects on time."
“Most buyers are focused on the affordable and mid segments (priced below Rs 80 lakh) and will have ample choice once this ready inventory hits the market by the end of next year. A whopping 74 per cent – or approximately 2.04 lakh units – fall in these two segments.”
Of the total 2.75 lakh units to complete by December 2020:
- NCR will see the maximum inventory of nearly 68,070 units, followed by MMR with 56,760 units and Pune with 44,480 units.
- Bengaluru, Hyderabad and Chennai will be 37,860, 17,100 units and 10,860 units of ready supply respectively.
- In Kolkata, approximately 15,690 units will be added by the end of 2020.
Affordable tops the budget bands
Homebuyers seeking affordable and mid-segment properties in the top 7 cities will be spoiled for choice with ample ready-to-move-in supply over the next one year. Of the 2.04 lakh ready units priced within Rs 80 lakh to hit the top 7 cities over the next one year, 1.13 lakh units will be in the affordable category and over 90,800 units in the mid-segment. Another 44,000 units are in the price budget of Rs 80 lakh to Rs 1.5 Cr, and over 27,500 units are priced >Rs 1.5 Crore.
Affordable RTM supply – City-wise trends:
- NCR tops the list with 46 per cent of the total 68,070 RTM units to hit this market by 2020 end in the affordable category. 38 per cent will be in the mid-segment and just 3 per cent (2,040 units) in the luxury and ultra-luxury segments.
- Pune comes second with 60 per cent of the total 26,690 units to be completed by December 2020 in the affordable segment. 33 per cent (approx. 14,680 units) will be in the mid-segment, about 5 per cent in the Rs
- 80 lakh-1.5 crore budget range, and just 2 per cent (approximately 890 units) priced >Rs 1.5 crore.
- MMR comes third with a ready affordable inventory of nearly 25,540 units to hit this market over the next one year, followed by 13,620 units in the luxury segments priced >Rs 1.5 crore, 9,080 units priced between Rs 80 lakhs-1.5 crore, and the least in mid-segment with approximately 8,510 units.
- Kolkata will see more ready affordable supply (approximately 9,510 units) over the next year than any of the southern markets – Bengaluru, Chennai and Hyderabad. 61 per cent of the city’s total ready supply will be in the affordable budget range, 20 per cent in the mid-segment, 12 per cent in the budget range of Rs 80 lakh to Rs 1.5 crore and just 7 per cent in the luxury and ultra-luxury segments combined.
- In Bengaluru, affordable ready supply will account for just 12 per cent share of the total 37,860 units, while the mid-segment comprises a whopping 48 per cent share, followed by 31 per cent of units priced within Rs 80 lakh-1.5 crore. Nearly 3,400 units will be priced >Rs 1.5 crore.
- Chennai and Hyderabad will collectively see new ready stock of 5,400 units in the affordable category. Interestingly, Hyderabad will see most its supply (approximately 6,670 units) in the budget range of Rs 80 lakh-1.5 crore, followed by 5,470 units in mid-segment and 3,250 units in luxury and ultra-luxury category.