There has been a substantial fall in the number of new launches and sales in the residential segment. In July-September quarter, new project launches in the country declined by 45 per cent as against the same quarter last year, according to a report by PropTiger, a real estate consulting firm.
The report titled, "Q2/H1 FY20 Indian residential market," mentioned that during the same period (Jul-Sep), home sales have also seen a dip of 25 per cent when compared to the corresponding quarter last financial year.
It further added that quarter-on-quarter comparisons (first quarter vs second quarter of financial year 2020) also showed a decline in both sales and launches. The new launches and home sales fell by 32 per cent and 23 per cent respectively.
"New launches continued to show a downward trend in the September quarter even as the government continues to move towards a solution to the ongoing NBFC issue, a problem that has dried up a key source of finance for real estate developers in India. As buyers postponed their purchase decisions to time it with the festive season, sales numbers also fell during the quarter," said Dhruv Agarwala, Group CEO, Elara Technologies, real estate technology platform that owns PropTiger.com, Housing.com and Makaan.com.
The report added that as against 61,679 fresh units launched in July-September FY19, only 33,883 new homes were launched in the second quarter of this year. Of these, 41 per cent units were in the affordable category (priced at ₹ 45 lakh or less).
According to Real Insight, a quarterly analysis of India’s nine key property markets by PropTiger DataLabs, new launches declined across cities other than Gurugram, which saw an increase in the number of launches.
"While new launch numbers might continue to fall in the coming quarters due to the liquidity crunch, we expect home sales numbers to improve in the subsequent quarter, factoring in the higher purchase activity that normally takes place during the festival season," Agarwala added.
Property prices have also undergone only slight changes in most of the markets except Hyderabad where prices have seen a jump of 15 per cent y-o-y.
However, only two markets have seen a downward movement in pricing in the past one year -- Gurugram (-4 per cent) and Chennai (-1 per cent). Other markets saw prices appreciate by 2 per cent to 4 per cent y-o-y.
The cities covered in the analysis are Ahmedabad, Bengaluru, Chennai, Gurugram (includes Bhiwadi, Dharuhera and Sohna), Hyderabad, Kolkata, Mumbai (includes Navi Mumbai and Thane), Noida (includes Greater Noida and Yamuna Expressway) and Pune.