Good News For Real Estate Sector Housing Sales Goes Up in Top 7 Cities.
By Varun Singh
Good News for Real Estate Sector, of the total 2.61 lakh housing sales seen in 2019 across the top 7 cities, over 56% (or approx. 1.47 lakh units) were sold in the first half itself, finds the latest study by ANAROCK Property Consultants. On half-yearly comparison, residential sales in H2 2019 plummeted 22% against H1 2019 while on yearly basis there was a marginal rise of 5% in entire 2019 compared to 2018.
On the supply front, of the total 2.37 lakh units launched in 2019, H2 saw new addition of over 97,000 units as against 1.4 lakh units in the first half, thus seeing a half-yearly decline of 30%. However, on yearly basis, there was a 21% rise in new supply in 2019 over 2018.
Segment-wise analyses reveals that affordable housing continued its growth momentum yet again in 2019 with overall new supply rising by 22% – from 77,590 units in 2018 to nearly 94,530 units in 2019. Of this, 54,660 units were launched in the first half alone.
The economic challenges of 2019 widely eclipsed overall residential growth during the second half of the year. However, both housing sales and new launches increased in 2019 as compared to the preceding year. Stronger branded players were the clear winners and took charge amidst the changing preferences of new-age homebuyers towards branded realty.
Expert Speaks
Anuj Puri, Chairman – ANAROCK Property Consultants says, “The unrelentingliquidity crisis, lower-than-expected buyer sentiments and faltering GDP growth eventually put brakes on the overall housing growth in the second half of 2019. However, among the top cities, MMR and Pune were clearly the showstoppers of residential real estate in 2019 as they recorded housing sales rise of 22% and 18% respectively, leaving Bangalore (which saw sales fall 12% yearly) far behind. Both top cities collectively saw residential sales of nearly 1.22 lakh units as against 78,860 units in all south cities (Bangalore, Chennai and Hyderabad) and 46,920 units in NCR in the north. In terms of new launch supply too, MMR and Pune came out on top in 2019 with annual increases of 30% and 89% respectively. Among the top 7 cities, MMR saw maximum new launches during the year at 78,000 units while Pune was second best at over 46,100 units.
“Residential growth in 2020 will mainly depend on the swift on-ground implementation of some of the previously-announced sops including stressed funds (of INR 25,000 Crore). If not, it may negatively impact the sector with buyer sentiments derailing even further. And if done timely, these measures will yield positive impact on the Indian real estate in 2020. A major part of the residential growth will most likely unfold in the second half of 2020. And, the financially stronger players will stay ahead in the game.”
2019 vs 2018: New Launch Overview
The top 7 cities recorded new unit launches of approx. 2,36,560 units in 2019 as against 1,95,300 units back in 2018. The key cities contributing to 2019 new unit launches included MMR (Mumbai Metropolitan Region), Pune, NCR, and Bengaluru, altogether accounting for 84% of addition.
| Supply | ||||||
| City Name | 2019 | 2018 | %Change (2018 Vs 2019) | H1 2019 | H2 2019 | %Change (H1 vs H2) |
| NCR | 35,280 | 26,010 | 36% | 21,600 | 13,680 | -37% |
| MMR | 77,990 | 59,940 | 30% | 49,890 | 28,100 | -44% |
| Bangalore | 39,930 | 34,880 | 14% | 20,080 | 19,830 | -1% |
| Pune | 46,100 | 24,430 | 89% | 28,220 | 17,880 | -37% |
| Hyderabad | 14,840 | 17,290 | -14% | 9,000 | 5,840 | -35% |
| Chennai | 13,000 | 15,680 | -17% | 7,060 | 5,940 | -16% |
| Kolkata | 9,420 | 17,070 | -45% | 3,640 | 5,780 | 59% |
| Total | 2,36,560 | 1,95,300 | 21% | 1,39,510 | 97,050 | -30% |
2019 vs 2018: Residential Sales Overview
Around 2,61,370 units were sold in 2019 – yearly increase of 5% over 2018. NCR, MMR, Bengaluru and Pune together accounted for 84% of the sales.
| Absoprtion | ||||||
| City Name | 2019 | 2018 | %Change (2018 vs 2019) | H1 2019 | H2 2019 | %Change (H1 vs H2) |
| NCR | 46,920 | 44,300 | 6% | 26,380 | 20,540 | -22% |
| MMR | 80,870 | 66,440 | 22% | 45,370 | 35,500 | -22% |
| Bangalore | 50,450 | 57,540 | -12% | 28,740 | 21,710 | -24% |
| Pune | 40,790 | 34,460 | 18% | 22,830 | 17,960 | -21% |
| Hyderabad | 16,590 | 18,630 | -11% | 9,830 | 6,760 | -31% |
| Chennai | 11,820 | 11,340 | 4% | 6,420 | 5,400 | -16% |
| Kolkata | 13,930 | 15,600 | -11% | 7,550 | 6,380 | -15% |
| Total | 2,61,370 | 2,48,310 | 5% | 1,47,120 | 1,14,250 | -22% |
Unsold Inventory – 2019 vs 2018
Increase in new launches and overall absorption in the top 7 cities during 2019 when compared to 2018 resulted in overall unsold inventory decreasing by a meagre 4% – from 6.73 lakh units in 2018 to 6.48 lakh units by 2019.
| Unsold Inventory | |||
| City Name | 2019 | 2018 | %Change(2018 vs 2019) |
| NCR | 1,75,079 | 1,86,714 | -6% |
| MMR | 2,16,603 | 2,19,483 | -1% |
| Bangalore | 62,816 | 73,337 | -14% |
| Pune | 92,721 | 87,403 | 6% |
| Hyderabad | 24,205 | 25,956 | -7% |
| Chennai | 32,019 | 30,837 | 4% |
| Kolkata | 44,957 | 49,471 | -9% |
| Total | 6,48,399 | 6,73,201 | -4% |
Price Movements
Average residential property prices across the top cities increased by mere 1% in 2019 when compared to 2018 except Kolkata & NCR where prices remained stagnant.
| Price Trend | |||
| City Name | Q4-2019 | Q4-2018 | %Change(Q4-2018 Vs Q4-2019) |
| NCR | 4,580 | 4,565 | 0% |
| MMR | 10,610 | 10,550 | 1% |
| Bangalore | 4,975 | 4,925 | 1% |
| Pune | 5,510 | 5,480 | 1% |
| Hyderabad | 4,195 | 4,150 | 1% |
| Chennai | 4,935 | 4,900 | 1% |
| Kolkata | 4,385 | 4,375 | 0% |
