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Residential launches have gone up 21 per cent, while sales increased 4 per cent in the first half of 2019 compared with the same period last year, according to a report by real estate consulting firm Knight Frank.
The report, ‘India Real Estate: Residential and Office H1 2019’, said that 51 per cent of the launches in the residential sector were in the under-₹50-lakh segment and 78 per cent under ₹1 crore.
Among the eight cities, which the report covers, Ahmedabad saw a growth of 157 per cent in new launches to 3,398 residential units in the first half of 2019 from 1,323 in the same period last year .
Hyderabad saw a growth of 47 per cent during the same period. Pune and Mumbai witnessed a rise of 52 per cent and 22 per cent respectively, in unit launches.
Dip in launches
The National Capital Region (NCR) and Kolkata saw a dip in the number of launches. In the NCR, the total number of launches stood at 7,846 in the first half of 2019 compared to 9,123 during the same period in 2018. Launches in Kolkata declined 90 per cent.
“Due to the Goods and Services Tax (GST), demonetisation and lack of demand, most of the developers did not launch too many new units, therefore, the unsold inventory number which were high have started to come down. So, less number of new launches is actually helping the market” said Mudassir Zaidi, Executive Director – North, Knight Frank.
Units sold
The 11th edition of the half-yearly report said that the Mumbai residential market recorded the largest sales volume among the eight cities with 33,731 units sold in first half of 2019 while the NCR saw a double-digit growth in sales at 10 per cent during the same period.
Kolkata saw a fall of 30 per cent in the total units sold. “This is primarily due to the procedural delays caused by the West Bengal Housing Industry Regulatory Authority and the pronounced dependence of developers on the distressed NBFC sector,” the report added.
Unsold inventory across top eight markets recorded a decline of 9 per cent during the period under review. While Hyderabad saw a decline of 67 per cent in unsold inventory, Mumbai was the only market to record an increase, with the inventory overhang increasing by 14 per cent.
Office Market
The overall supply for office space saw a growth of 31 per cent to 23.9 million sq ft. The average rental values across the eight cities grew 10 per cent during the first half of 2019. Ahmedabad reported the maximum rental growth of 14.3 per cent while Bengaluru and Hyderabad grew at 13.5 per cent and 11.3 per cent respectively. Mumbai and Chennai witnessed a rental growth of 7.5 per cent and 3.5 per cent respectively.
“The strong demand scenario in office market kept the vacancy stable at 13 per cent in first half of 2019, compared to a year ago. Southern markets recorded single digit vacancy rates, with Bengaluru showcasing the lowest vacancy rate at 4 per cent in first half of 2019,” the report added.
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