By Varun singh

Vertical growth, one of the most defining characteristics of Indian urbanization in over a decade, has become Indian real estate’s latest Covid-19 ‘casualty’. Latest ANAROCK research reveals that among new projects launched since 2019, the share of high-rises had shrunk to 52% in 2021 against 63% in the pre-Covid year.

Of 1,178 projects launched in the top 7 cities in 2021, approx. 614 were high-rises of G+10 floors or more. In 2019, over 603 of 960 projects were high-rises. Newly launched projects include apartments, villas and row houses, and independent floors.

In 2020, over 291 (60%) of 486 residential projects launched in the top 7 cities comprised high-rises.

NCR witnessed the most notable change in new project typologies. Of 62 new projects launched in NCR in 2021, around 39 (63%) were high-rises – denoting a 32% decline since 2019. In 2019, among a similar number of new projects (61), a significant 95% (58 projects) were high-rises. The growing consumer preference for independent floors since the pandemic shows no signs of relenting, particularly in key markets of Gurugram and Faridabad.

Anuj Puri, Chairman – ANAROCK Group says, “We are seeing a clear shift in homebuyer preferences towards independent floors in key NCR markets like Faridabad and Gurugram. The trend in the key Southern cities of Bengaluru, Hyderabad, and Chennai is towards plotted developments. The supply share of high-rise projects has been on a y-o-y decline since 2019.”

“In the key Western cities of MMR and Pune, we are seeing supply trends shifting towards smaller, lower-rise projects of <100 units. The new demand realities of the Covid-19 pandemic towards low-saturation housing projects aside, both the completion timelines and capital requirements for smaller projects are much lower.”

• NCR spearheads this changing post-Covid-19 trend – of 62 projects launched in the region in 2021, approx. 39 projects (63%) were high-rises, while in 2019, of 61 projects, 58 projects (95%) were high-rises. Housing demand in NCR is shifting towards independent homes. Apart from this changing consumer demand, developers can complete and monetize independent homes projects much faster – in many cases, in as little as a year – while high-rises can take four years or more to pay off
• Predictably, land-starved MMR has seen a much lower change in the total share of the high-rises. Of 421 projects launched in the region in 2021, nearly 263 (62%) projects were high-rises. In 2019, of approx. 360 projects launched, 250 (69%) were high-rises. While apartments continue to dominate new supply, MMR is witnessing a marked increase in the launch of smaller low-rise buildings in 2021. In 2021, MMR saw approx. 56,880 units launched in approx. 421 projects. 2019 saw more units launched – approx. 77,990 units in over 360 projects.
• Pune witnessed a similar trend with more low-rise projects launched; however, the city’s share of high-rises also declined – from 89% in 2019 to 72% in 2021. Of 235 projects launched here in 2021, 170 were high-rises. In 2019, of approx. 185 projects launches, 165 projects were high-rises.
• In the southern cities, the high-rise culture is declining while demand for plotted developments has been on the rise after Covid-19. Many developers have begun focusing on plotted development projects. In the three key South cities Bengaluru, Chennai and Hyderabad, approx. 383 projects were launched in 2021, of which 118 projects (31%) were high rises. In 2019, of approx. 307 projects launched, 109 (36%) were high-rises.
• Of 103 projects launched in Chennai in 2021, a mere 10 projects were high-rises. In Bengaluru, of 140 projects launched last year, 51 projects (36%) were high-risesand in Hyderabad, of 140 projects launched, 57 were high-rises.
• Kolkata saw 77 projects launched in 2021, of which 24 (31%) were high-rises; in 2019, of approx. 47 projects launched, 21 (45%) were high-rises.

Also Read: BMC received ₹13543 Cr till Jan 2022 from Real Estate target earlier was ₹2000 Cr

The post Covid-19 Impacts High-Rises, supply Dips in 2021 appeared first on Square Feat India.

By Varun Singh

High Rises is what Indian Real Estate Industry is constructing. With Indian cities under increasing pressure to grow vertically, the share of high-rises (G+20 floors or more) scaled unprecedented heights in 2019.

ANAROCK data indicates that of a total 1,816 residential projects launched across the top 7 cities in 2019, over 52% were high-rises.

Land-scarce Mumbai Metropolitan Region tops the list with over 75% of the total 734 project launched in 2019 in the high-rise category. With G+20 floors the new normal in the region, Mumbai is closing in on other mega cities like New York, Hong Kong and Tokyo where buildings as tall as G+50 floors are the norm.

NCR came next with nearly 70% of its total launched projects in the high-rise category. Bangalore clocked in with 45% of the total projects launched in 2019 towering above G+20 floors, followed by Pune with 41% share.

In Hyderabad, Kolkata and Chennai, the share of G+20 floors or above option is scantier, with their high-rise share at 23%, 21% and 16% respectively. Notably, Chennai and Hyderabad – two cities which had stuck to more conventional low-rise formats for long – are gradually warming up to high-rise housing developments. In both these cities, the well-to-do preferred bungalows and sea-facing villas. It is only in the last decade that these cities have begun to grow vertically, largely due to accommodate increased inward migration.

“The increasing trend of vertical development has taken the sheen off a once highly-preferred property type – villas. Both demand and supply of this format are diminishing, with wealthy homebuyers preferring the latter-day concept of ‘sky villas’. ANAROCK data reveals that of the total new launches of 5.45 lakh units in 2014, nearly 5% were villas. In 2019, this share dropped to 2% of the total of 2.37 lakh units launched during the year,” said Anuj Puri, Chairman – ANAROCK Property Consultants.

This downward trend has been evident in the eastern, western and northern regions since 2014. Today, the southern cities of Hyderabad, Bangalore and Chennai also showcase the declining villa trend.

• Hyderabad stood out – of the total new launches of nearly 14,530 units in 2014, over 35% were villas. In 2019, the supply share of villas reduced to 8% of the total launches of nearly 14,840 units. Interestingly, the total supply in both years is almost similar.
• In Chennai, the share of villas in 2014 was second-highest with over 16% of total new launches (28,540 units). In 2019, this share dropped to 5% of the total 13,000 units launched.
• Bangalore saw its share of villa launches drop from 12% in 2014 to 5% in 2019. The overall launches in the city stood at 85,950 units in 2014 and 50,450 units in 2019.
• NCR saw only a marginal drop – from a 3% share of 1.73 lakh units in 2014 to 2% of 46,920 units in 2019. 
• MMR saw a mere 1% share of villas from a total 1.34 lakh units launched in 2014; their share in 2019 is now zero. 

In Pune and Kolkata too, the share of villa supply has been negligible in the last five years.

Also Read: Commercial Doing Better Than Residential.

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