Monday, August 19, 2019
News
NEWS HOME
PRN INDIA
Housing Absorption Declines 13% in Q2 2019, New Launches Down 2% - ANAROCK
  SocialTwist Tell-a-Friend  
   

  • Housing absorption in top 7 cities at approx. 68,600 units in Q2 2019 against 78,520 units in Q1; for first time since 2016, total unit launches are more than units sold in the quarter
  • Unsold inventory maintains status quo at 6.65 lakh units
  • Hyderabad records highest quarterly drop in housing absorption at 18%; NCR sees least decline at 8%
  • Builders restrict new supply in Hyderabad, Pune & MMR; NCR, Bangalore, Chennai & Kolkata see new launches increase by 69%, 21%, 23% & 164% respectively
  • Affordable (
  • Union budget tax sops for affordable segment to benefit 25,580 new homes across top cities, insufficient in light of relentless demand across metros
  • New launches in luxury category (priced INR 2 Cr - 5 Cr) increase by 60% in Q2 2019 against previous quarter
  • On yearly basis, home sales in top 7 cities rises by 12% while new launches by 36%

MUMBAI, July 9, 2019 /PRNewswire/ -- As anticipated, residential real estate activity remained largely tepid during the second quarter of 2019 against the backdrop of the general elections during the period but the recent Union Budget sops for the affordable sector may give the much-needed push to the segment henceforth. ANAROCK research indicates that housing sales in Q2 2019 fell by 13% q-o-q and stood at 68,600 units across the top 7 cities.

ANAROCK Anuj Puri

New launches saw a 2% quarterly decline and stood at 69,000 units. Four of the top 7 cities - NCR, Bangalore, Chennai and Kolkata - saw increased new launches.

Though by a minuscule margin, it was the first time since 2016 that new launch numbers outstripped housing sales in a given quarter. Ideally, it should be vice versa.

  • Hyderabad, Bangalore and Pune saw the maximum drop in the housing sales at 18%, 16% and 15% respectively.
  • MMR and NCR saw 11% and 8% dip respectively.

Budget Sops to Push Supply in Affordable Segment

Affordable housing saw a quarterly decline of total new supply - by a significant 20% - from 32,060 units in Q1 2019 to 25,580 units in Q2 2019.

Despite high demand for budget homes in the major cities, builders find it challenging to build housing in the incentivized INR 45 lakh budget range. The hope that the government would revise the price definition of affordable housing in the top cities has remained unfulfilled. For a city like MMR, a budget of INR 45 lakh is far too low.

Anuj Puri, Chairman, ANAROCK Property Consultants, says, "Housing sales and new launches usually reduce before and during the general elections period. However, on a yearly basis, housing sales jumped up by 12% in Q2 2019 over Q2 2018, while new launches increased by 36% during the same period. Going forward, with a stable government in power, residential activity is likely to pick momentum in the coming quarters. Though new launches saw a 2% quarterly decline in Q2 2019, and affordable housing supply fell by 20% against the previous quarter, the luxury category (priced INR 2 Cr - INR 5 Cr) saw supply increase by a whopping 60%, led by Hyderabad and NCR."

The government's Budget 'bonanza' for affordable housing - an additional INR 1.5 lakh income tax deduction on interest paid on home loans availed till March 2020 - will incite builders to increase their supply in this category so as to attract first-time home buyers. Thus, we may see an increase in supply in this category in the coming quarters.

Paradoxically, however, the prevailing high property prices within the municipal limits of the major cities prevent builders from launching affordable housing projects there, while lack of basic infrastructure facilities in the peripheral areas - where housing within INR 45 lakh could be developed - discourage buyers.

Q2 2019 New Launch Overview

The top 7 cities recorded new unit launches of around 69,000 units in Q2 2019 as opposed to 70,480 units in Q1 2019. Key cities contributing to Q2 2019 new unit launches were NCR, MMR, Bangalore and Pune, together accounting for 85% of this quarter's addition.

  1. MMR saw the launch of approx. 23,045 units - a decline of nearly 14% from Q1 2019. Over 63% new supply was added in sub INR 80 lakh budget segment.
  2. Bangalore added approx. 11,010 units in Q2 2019, a quarterly increase of 22% over Q1 2019. Approx. 28% new supply was added in the affordable segment.
  3. NCR added new supply of 13,570 units in Q2 2019 compared to 8,030 units in Q1 2019 - a massive rise of 69%. Approx. 48% new supply was added in the affordable segment.
  4. Pune added 10,700 units in Q2 2019, a 39% decline over previous quarter. More than 85% new supply was added in sub INR 80 lakh budget segment out of which 40% comprised of affordable projects.
  5. Hyderabad added 4,155 units in Q2 2019, a decrease of 14% over the preceding quarter. Approx. 71% new supply was added in luxury and ultra-luxury segments priced above INR 80 lakhs.
  6. Chennai added approx. 3,885 units in Q2 2019, an increase of 23% over the previous quarter. Approx. 35% new supply was added in the affordable segment.
  7. Kolkata added approx. 2,640 units in Q2 2019, a significant increase of 164% over Q1 2019. Approx. 38% new supply was added in the affordable segment.

New Supply: Q2 2019 vs Q1 2019

City Name

Q2-2019

Q1-2019

% Change (Q1-2019 Vs Q2-2019)

NCR

13,570

8,030

69%

MMR

23,045

26,850

-14%

Bangalore

11,010

9,060

22%

Pune

10,700

17,520

-39%

Hyderabad

4,155

4,850

-14%

Chennai

3,885

3,170

23%

Kolkata

2,640

1,000

164%

Total

69,005

70,480

-2%

Q2 2019 Overall Sales Overview

Around 68,600 units were sold in Q2 2019 - a decline of 13% over Q1 2019. NCR, MMR, Bangalore and Pune together accounted for 84% of the sales in the quarter.

  1. MMR saw housing absorption decline by 11% in Q2 2019 over previous quarter. City absorption declined from 24,005 units in Q1 2019 to 21,360 units in Q2 2019.
  2. NCR saw the least decline in housing absorption among top 7 cities by 8% - from 13,740 units in Q1 2019 to 12,640 units in Q2 2019.
  3. Pune housing absorption declined by 15% in the quarter - from 12,340 units in Q1 2019 to 10,490 units in Q2 2019.
  4. Bangalore housing absorption declined by 16% - from 15,580 units in Q1 2019 to 13,150 units in Q2 2019.
  5. Kolkata housing absorption declined by 12% over the previous quarter of Q1 2019 and was recorded at 3,540 units in Q2 2019.
  6. Hyderabad housing absorption saw maximum decline of 18% in Q2 2019 over the previous quarter and was recorded at 4,430 units in this quarter.
  7. Chennai housing absorption declined by 13% over the previous quarter with approx. 2,990 units being sold.

Housing Absorption: Q2 2019 vs Q1 2019

City Name

Q2-2019

Q1-2019

% Change (Q1-2019 Vs Q2-2019)

NCR

12,640

13,740

-8%

MMR

21,360

24,005

-11%

Bangalore

13,150

15,580

-16%

Pune

10,490

12,340

-15%

Hyderabad

4,430

5,400

-18%

Chennai

2,990

3,435

-13%

Kolkata

3,540

4,020

-12%

Total

68,600

78,520

-13%

Overall Unsold Inventory (Q2 2019 End)

Housing sales remained subdued due to the general elections; many homebuyers went into wait-and-watch mode. Unsold housing stock remained more or less the same during Q2 2019 as against Q1 2019 at 6.65 lakh units.

Bangalore saw a decline in its unsold stock at 3%, followed by Kolkata with 2%. NCR and MMR saw unsold housing increase by 1% each during Q2 2019 over the preceding one.

City Name

Q2-2019

Q1-2019

%Change (Q1-2019 Vs
Q2-2019)

NCR

1,81,927

1,80,999

1%

MMR

2,24,008

2,22,327

1%

Bangalore

64,677

66,819

-3%

Pune

92,791

92,585

0%

Hyderabad

25,127

25,401

-1%

Chennai

31,473

30,575

3%

Kolkata

45,555

46,452

-2%

Total

6,65,558

6,65,157

0%

Price Movements

Average property prices across the top 7 cities remained the same in Q2 2019 when compared to the previous quarter. On a yearly basis too, average property prices largely remained at status quo.

City-Level Price Trend (INR/sq. ft.)

City Name

Q2-2019

Q2-2018

%Change (Q2-2018 Vs Q2-2019)

Q1-2019

%Change (Q1-2019 Vs Q2-2019)

NCR

4,565

4,550

0%

4,565

0%

MMR

10,610

10,514

1%

10,550

1%

Bangalore

4,960

4,900

1%

4,950

0%

Pune

5,494

5,465

1%

5,480

0%

Hyderabad

4,187

4,130

1%

4,170

0%

Chennai

4,935

4,935

0%

4,920

0%

Kolkata

4,375

4,450

-2%

4,375

0%

About ANAROCK:

ANAROCK is India's leading independent real estate services company with a presence across India and the Middle East. The Chairman, Anuj Puri, is a highly-respected industry veteran and India's most prominent real estate thought leader.

The Company has diversified interests across the real estate lifecycle and deploys its proprietary technology platform to accelerate marketing and sales. ANAROCK's services include Residential Broking and Technology, Retail, Investment Banking, Hospitality (via HVS ANAROCK), Land Services, Warehousing and Logistics, Investment Management, Research and Strategic Consulting.

The Company has a unique business model, which is an amalgamation of traditional product sales supported by a modern technology platform with automated analysis and reporting tools. This offers timely solutions to its clients while delivering financially favourable and efficient results.

ANAROCK has a team of over 1800 certified and experienced real estate professionals who operate across all major Indian and GCC markets, and within a period of two years, has successfully completed over 300 exclusive project mandates. ANAROCK also manages over 80,000 established channel partners to ensure global business coverage.

Our assurance of consistent ethical dealing with clients and partners reflects our motto - Values Over Value.

Please visit http://www.anarock.com

Media Contact:
Arun Chitnis
arun.chitnis@anarock.com
+91-9657129999
Head - Media Relations
ANAROCK Property Consultants

ANAROCK Logo

Logo: https://mma.prnewswire.com/media/830831/ANAROCK_Logo.jpg
Photo: https://mma.prnewswire.com/media/827633/ANAROCK_Anuj_Puri.jpg

More News by PR Newswire India

US Court Refuses To Halt Discovery Against Kazakh State Assets Held Around The World

OPPO Reno2 Series Set to Redefine Creativity

Media Members Tee Off At Forest City Classic Golf Course

Xinhua Silk Road: North China's Alxa League to hold autocross festival in Oct.

Beijing's Green Belt & Road Forum Draws Global Lenders

Second Edition of TechLaw.Fest Addresses Challenges Surrounding Data Access and Control, Data Security, 5G, and the Role of Data in Commerce

BloombergNEF Awards Sungrow a 100% Bankability Rating

"Borderline" Becomes Southeast Asia's First Contemporary Artwork to be Acquired by France's Guimet Museum

Global market of dietary supplement is welcoming a rising star GLYMATE

Artprice by Art Market: Latest Auction Records in Photography

Sungrow Supplies Argentina's Largest Solar Plant with 1500Vdc Central Inverter Solutions

Over 120 Exhibitors From 10 Countries to Participate in Food & Hotel India 2019

SOTC Launches Holidays to Western Australia

Sonata Software Limited Announces Partnership With Agastya International Foundation to Support Creativity and Innovative Thinking in Rural Schools

Garuda Mall Presents Bengaluru's Biggest Doll and Book Festival August 2019

IIHM Initiative for 'Freedom From Hunger' on Independence Day

Xinhua Silk Road: Tasly remains China's 2019 National Tech Innovation Demonstration Enterprise

The Garment Manufacturers Association in Cambodia (GMAC) urges the EU to maintain the EBA program - The livelihood of 750,000 workers and the welfare of some 3 million Cambodians at stake

Venus Concept Announces Financial Results for the Second Quarter and First Six Months of 2019 and FDA 510(k) Clearance of Venus Bliss™

HHL Leipzig Graduate School of Management Confers Honorary Doctorate to Federal Chancellor Angela Merkel

IHG® Hotels & Resorts Serves Up One-of-a-Kind Experiences at 2019 US Open

Earlier Is Better ... New, Patented At-Home Blood Pregnancy Test, Available Exclusively From TAEUS, Offers Human Pregnancy Confirmation Within Days, Rather Than Weeks

Frost & Sullivan Recognizes Proofpoint as the Global Email Security Market Leader for Fifth Consecutive Year

IBC2019: TVU Networks Announces Advances in AI, 4K60fps and HDR Transmission, and Remote Production

Rain Carbon Begins Commissioning Process at New Hydrogenated Hydrocarbon Resins Facility in Germany

AntWorks and Everest Group Unveil Intelligent Document Processing Playbook

Charkit Chemical Announces Promotion Of Panos Yannopoulos To Executive Vice President, Sales

FDA Approves New Treatment for Highly Drug-Resistant Forms of Tuberculosis

Grammy Winning and Multi-Platinum Recording Artist Ariana Grande Launches Her New Fragrance THANK U, NEXT

Amplitude launches Engage, a behavioral targeting solution for automated campaign personalization

Webb Fontaine Group FZ-LLC Signs a National Single Window Implementation Contract With the Government of Nepal

upGrad Honours the Indian Armed Forces With an Exclusive Lifelong Benefit, This Independence Day

Mishtann Foods Reports 22.1% Increase in Q1FY2020 PAT at INR 3.14 Crore

Gyrfalcon's Cutting-edge Technology for Creating AI Accelerator Chips Commended by Frost & Sullivan

Rolls Royce's Ghost Zenith Collection, the Pinnacle of a Timeless Masterpiece

CleverTap Helps GiftAMeal Increase the Number of Meal Donations by 2x

TÜV SÜD South Asia Introduces Promotional Scheme Offering Testing Services With 8- hours Turnaround Time for Textile Manufacturers in Tiruppur

Over 300 Exhibitors & 650 Brands From Gems & Jewellery Industry to Participate in 8th Edition of Delhi Jewellery and Gem Fair ( DJGF ) 2019

9stacks Wins the SuperStartup Asia Award 2019

Mobileum Inc. Acquires WeDo Technologies

true balance and ICICI Lombard Partner to Provide Financial Inclusion to the Next Billion

Ashraya Hastha Trust Partners With Smile Train India to Boost Cleft Care Ecosystem in India

Radio Nasha Celebrates 25 Years of 'Hum Aapke Hain Koun' at Nasha Premiere Nights

Bitfinex Enables Intermediate Verification Level

Small-satellites and Downstream Digital Transformation Accelerate Space Industry Evolution

Uflex Starts Q1 FY2019-20 With a Steady Performance

Vanita Bhandari Takes Over as 50th President of IMC's Ladies' Wing

Jet Midwest, Inc. Acquires a B767-200ER airframe and CF680A-2 engine

42Gears Named as a Visionary in Gartner's Magic Quadrant for Unified Endpoint Management Tools 2019

Richardson Launches Enhanced Service Through Consultative Sales Training Program to Equip Service Professionals with Skills to Deliver Exceptional Customer Experience & Unexpected Value

Chef Clement D'Cruz of Hyatt Joins IIHM Panel of Experts

Voltaiq Applauded by Frost & Sullivan for its Game-changing Battery Analysis Platform, Voltaiq Core, and Innovative Battery Digital Twin Solution

Private and SME Segments Stand Out Globally as Key Targets for Car Leasing Companies

ITC Infotech and 'Automation Anywhere' Pioneer Digital Workforce

Clarivate Analytics launches Cortellis Digital Health Intelligence, a first-of-its-kind solution covering the global digital health ecosystem

Combined Surgical Suction/Irrigation Technology Available Immediately

FDI Applications More Than Doubled in First Half of 2019, Thailand BOI says

Mambu Earns Acclaim from Frost & Sullivan for Accelerating Customers' Time-to-market with its Cloud-based Core Banking Platform

Mukta Arts' Q1 FY20 Consolidated Revenues up 40% y-o-y to INR 47.9 Crore

Prozone Intu's Q1 FY20 Consolidated Revenues up 31.4% to INR 22.3 Crore

Companies Invest Heavily in Employee Health Management IT Solutions to Improve Employees' Well-Being and Corporate Performance

Sofyx & Servify Team Up to Launch Protection Plans for Smartphones in General Trade

OPPO Announces Discounts on F11 Pro and F11 This Independence Day

udChalo Forays Into the Hotel Segment by Partnering With Oyo and Fab Hotels

One Tree Can Save the World - InitiativeTree Launches Its Worldwide Network Tree Planting Program

Global Construction Additives Market Set for Robust CAGR of 6.6% from 2018 to 2025

The Farm at San Benito, Philippines Offers Special Monsoon Packages for Indian Travellers

Saksoft Q1Y20 EBITDA at Rs. 16.17 Crs, a Growth of 40.2% Y-o-Y

UST Global Announces Strategic Partnership With SeaLights Technologies

Pennar Industries Reports 25.8% y-o-y Increase in Q1 FY2020 Consolidated PAT After Minority Interest at INR 16.5 Crore

Global Alliance for the Future of Food Report: 21 Inspiring Examples of a Sustainable Food Future

New Review Suggests Normal Use of Electronic Cigarettes is Unlikely to Raise Significant Health Concerns

Conagen Expands Portfolio Beyond Gamma-Decalactone to 20 new non-GMO Lactones

Concept Medical Inc. Granted 2nd 'Breakthrough Device Designation' From the FDA for Its MagicTouch PTA Sirolimus Coated Balloon, for the Treatment of Peripheral Artery Disease (PAD) in Below-the-Knee (BTK) Indication

Betway Partners With Cricket Legend Kevin Pietersen

Higher Levels of Automation Expand Revenue Potential for Analytical Instrumentation Manufacturers

Xinhua Silk Road: Inaugural Fortune Global Sustainability Forum to be held in SW China's Yuxi in early Sept.

Autonomous Vehicle Developers Bet on Sensor Fusion Solutions and L2+ Features

KSB is First Reactor Coolant Pump Manufacturer to be Certified for Modern Nuclear Power Plants in China

Diabetic Patients Face a High Risk of Viral Hepatitis, Over 300 Million Infected HBV Patients are Unaware of Their Status, Says Dr. Nagaraj.S, Infilife Healthcare Pvt. Ltd.

Embassy Office Parks REIT Announces First Quarter FY 2019-20 Results; Reports Quarterly Distribution of Rs 4,167 Million

The Stars Group Reports Second Quarter 2019 Results; Updates 2019 Full Year Guidance; Appoints New Independent Director

Taiwan Tourism Bureau gets on Track With the Mumbai Metro

New Lagavulin 10 Year Old Single Malt Scotch Whisky: A Rare and Exclusive Treat for Travellers

Amity University Maharashtra Hosts its First Annual Convocation Ceremony in Mumbai

Producer Gaurang Doshi has been Instrumental in the Launch and Success of Many Among 'A' List Bollywood; Plans to Launch Ace Talent yet Again

MEIL's Engineering Marvel Converts Telangana's Dream Into a Reality

Deutsche Messe AG Alliance with Donghao Lansheng Group to Launch New Industrial Fairs in Shenzhen and Chengdu from 2020

Children Learn to Become Global Leaders at the 2019 Eye Level Model United Nations Camp

HONOR Vision Defines the Future with HONOR "Sharp Tech" Innovations

116 Young Talents for the 3rd Zhuhai Mozart Competition in September

 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
INDIA WORLD ASIA
Former Bihar CM Jagannath Mishra passes ...
Widow set on fire by in-laws over proper...
After Kashmir backing, Modi to visit UAE...
CBI conducts raids in Rs 354 crore Moser...
Leh's Magnetic Hill: Myth or Real?...
J-K: Army rejects Shehla Rashid's 'basel...
More...    
 
 Top Stories
Indian players to hold discussion o... 
Despite US pressure, freed Iranian ... 
Hostel superintendent suspended aft... 
Maharashtra: Nashik civil hospital ... 
Pennar Industries bags orders worth... 
J-K: 'Awam cum Ex-servicemen' rally... 
Ayodhya case: No hearing in SC toda... 
Kerala: Floodwaters recede, death t...