Housing Sales-to-Supply Ratio Rises to 1.36

18 Sep 2020 Editorial Team

Housing Sales-to-Supply Ratio Rises to 1.36 Amid Limited Launches in Top 7 Cities – FICCI-ANAROCK Report

• In 2014, the ratio was just 0.63; improvement is a good indicator of the housing sector’s future growth potential

• Affordability of mid-income homes to be lowest-best at 27per cent in FY21 - 53per cent in FY12

• Value of total real estate under construction increases 2.6X - from USD 94 billion in 2009 to USD 243 billion as of H1 2020 - with residential share growing from 49per cent to 88per cent

• Listed developers’ sales hold steady while the broader market slows down; organized players the wave of the future

• Government’s SWAMIH fund is in action with nearly INR 10,284 Cr sanctioned for completion of 71,559 homes across 101 stuck projects

Amidst controlled new housing launches, the residential sales-to-supply ratio has improved to 1.36 currently, as against 0.63 in 2014, reveals the FICCI-ANAROCK report Indian Housing Sector: Disrupted, Transformed & Recovering released at the 14th Annual FICCI Real Estate Summit 2020 on September 18, 2020. The improvement in this critical ratio is indicative of sustained future growth for the housing sector.

Anuj Puri, Chairman - ANAROCK Property Consultants says, "The report also highlights that in the post-COVID-19 era, affordability of mid-income homes, calculated on the ratio of the home loan payment to income, will touch its lowest-best at 27 per cent in FY21. It was 53 per cent in FY12 and has been falling y-o-y ever since."

Several factors will influence residential real estate revival in post - COVID-19 times. For instance, property prices have remained range-bound with weighted average prices across the top 7 cities rising only nominally at a CAGR of 3 per cent between 2012 to 2019. This is significantly lower than the prevailing inflation rates and income growth.

“In the past, the value of real estate under construction increased from USD 94 billion in 2009 to USD 243 billion as of H1 2020 - a 2.6X increase," says Puri. "During the same period, the share of residential real estate grew from 49 per cent to 88 per cent, indicating the massive expansion of this segment.”

As policy reforms and financial stress continue to eliminate weaker players, listed developers’ sales are staying on course in the current scenario. While overall sales have declined, listed developers continue to thrive on the back of homebuyers' increasing preference for organized players. ANAROCK research’s consumer sentiment survey during lockdown also highlighted that 62per cent of prospective buyers prefer to buy a home from branded developers, even if it comes at a higher cost.

Corporate developers’ earlier focus on high-end residential assets has now broadened to cover a wider demand spectrum. Along with luxury projects, they are expanding their footprints in affordable and mid-segment projects as well. The success mantras of the future now are:

1. Embrace the digital/ virtual route

2. Focus on Business Continuity Plan (BCP)

3. Zero in on salaried end-users and NRIs, expand affordable and mid-segment portfolios

Other Key Highlights of the Report

With homes now doubling as workplaces and for online education, some interesting new trends are becoming evident in residential real estate:

• WFH option and online schooling - demand for 2.5 BHK and 3.5 BHK configurations has increased

• Home layouts are changing - functional and flexible homes in top demand.

• Plotted developments becoming popular - independent and semi-independent formats like villas or row houses provide better social distancing

• Housing requirements in tier 2 and 3 cities to increase - with reverse migration happening across the country.

• Luxury projects garnering renewed interest - from a TG that is less financially impacted by the pandemic

Download the full report - Indian Housing Sector: Disrupted, Transformed & Recovering

Housing Sales-to-Supply Ratio Rises to 1.36 Amid Limited Launches in Top 7 Cities – FICCI-ANAROCK Report • In 2014, the ratio was just 0.63; improvement is a good indicator of the housing sector’s future growth potential• Affordability of mid-income homes to be lowest-best at 27per cent in FY21 - 53per cent in FY12• Value of total real estate under construction increases 2.6X - from USD 94 billion in 2009 to USD 243 billion as of H1 2020 - with residential share growing from 49per cent to 88per cent• Listed developers’ sales hold steady while the broader market slows down; organized players the wave of the future• Government’s SWAMIH fund is in action with nearly INR 10,284 Cr sanctioned for completion of 71,559 homes across 101 stuck projects Amidst controlled new housing launches, the residential sales-to-supply ratio has improved to 1.36 currently, as against 0.63 in 2014, reveals the FICCI-ANAROCK report Indian Housing Sector: Disrupted, Transformed & Recovering released at the 14th Annual FICCI Real Estate Summit 2020 on September 18, 2020. The improvement in this critical ratio is indicative of sustained future growth for the housing sector.Anuj Puri, Chairman - ANAROCK Property Consultants says, The report also highlights that in the post-COVID-19 era, affordability of mid-income homes, calculated on the ratio of the home loan payment to income, will touch its lowest-best at 27 per cent in FY21. It was 53 per cent in FY12 and has been falling y-o-y ever since. Several factors will influence residential real estate revival in post - COVID-19 times. For instance, property prices have remained range-bound with weighted average prices across the top 7 cities rising only nominally at a CAGR of 3 per cent between 2012 to 2019. This is significantly lower than the prevailing inflation rates and income growth. “In the past, the value of real estate under construction increased from USD 94 billion in 2009 to USD 243 billion as of H1 2020 - a 2.6X increase, says Puri. During the same period, the share of residential real estate grew from 49 per cent to 88 per cent, indicating the massive expansion of this segment.” As policy reforms and financial stress continue to eliminate weaker players, listed developers’ sales are staying on course in the current scenario. While overall sales have declined, listed developers continue to thrive on the back of homebuyers' increasing preference for organized players. ANAROCK research’s consumer sentiment survey during lockdown also highlighted that 62per cent of prospective buyers prefer to buy a home from branded developers, even if it comes at a higher cost.Corporate developers’ earlier focus on high-end residential assets has now broadened to cover a wider demand spectrum. Along with luxury projects, they are expanding their footprints in affordable and mid-segment projects as well. The success mantras of the future now are: 1. Embrace the digital/ virtual route2. Focus on Business Continuity Plan (BCP)3. Zero in on salaried end-users and NRIs, expand affordable and mid-segment portfolios Other Key Highlights of the Report With homes now doubling as workplaces and for online education, some interesting new trends are becoming evident in residential real estate: • WFH option and online schooling - demand for 2.5 BHK and 3.5 BHK configurations has increased• Home layouts are changing - functional and flexible homes in top demand.• Plotted developments becoming popular - independent and semi-independent formats like villas or row houses provide better social distancing• Housing requirements in tier 2 and 3 cities to increase - with reverse migration happening across the country.• Luxury projects garnering renewed interest - from a TG that is less financially impacted by the pandemicDownload the full report - Indian Housing Sector: Disrupted, Transformed & Recovering

Infrastructure Transport

06 May 2026

Pune To Build Nine Km Link Road Between Highways

The Pune Municipal Corporation (PMC) has decided to appoint an expert to plan the development of a nine km long, 60 metre wide road from Khadi Machine chowk to Wadki chowk as an extension to the Katraj-Kondhwa road to link the Mumbai-Satara and Pune-Solapur national highways. The scheme is intended to divert heavy vehicle traffic away from the city and improve access between the two arterial routes. The project has been prioritised by the PMC and forms part of a larger set of schemes in which 19 roads have been identified for development at a combined cost of Rs 9.82 billion (bn) to address c..

Infrastructure Transport

06 May 2026

Barabanki Bahraich Six Lane Highway Approved in Uttar Pradesh

The Uttar Pradesh government has approved construction of a new six-lane highway linking Barabanki and Bahraich as part of National Highway 927, and the cabinet has cleared the project. The alignment will pass through Mustafabad and Kaiserganj and extend for about 101.5 km, creating a key corridor for local and long-distance movement. The National Highways Authority of India will oversee the work and has signalled the scheme is intended to strengthen regional connectivity and cross-border access to Nepal. The project carries an estimated total cost of Rs 69,690 million, equivalent to Rs 69.69..

Infrastructure Transport

06 May 2026

Toll At Kharegaon Likely As Highway Upgrade Nears Completion

A section of the highway at Kharegaon has undergone an upgrade and is approaching completion, and authorities have indicated plans for a toll to be introduced once works finish. The project has focused on strengthening the carriageway, improving drainage and upgrading intersections to enhance safety and capacity. Officials have said the toll will be used to recover construction costs and fund ongoing maintenance. The upgrade included resurfacing of the pavement, widening of certain stretches and installation of modern signage and lighting to reduce accident risk. Contractors completed most ma..