New Delhi: In a report released by PropEquity, India’s leading real estate data, research and analytics firm, it said that total absorption of housing units increased by 15 per cent across top 9 cities in India in the second quarter of 2018 from 43,246 units to 49,945 units.
As the real estate market accustomed to reforms like GST & RERA, absorption for ready to move and nearing completion projects picked up. New launches also continued to grow and increased by 2% in Q2 from 34,356 units to 35,211 units. This uptick is expected to continue for 2018.
Weighted average prices in the quarter also grew 1% from Rs 6,477 PSF to Rs 6,514 PSF.
“Real estate housing market across India continues to stabilize with developers in this quarter clearing their older inventories and launching several new projects. This trend is expected to continue in the following quarters with new launches to further pick up in 2018. The increase in the carpet area in the affordable category is expected to also give a boost to this residential market segment which has already seen good traction,” Samir Jasuja, founder and CEO at PropEquity said.
The unsold inventory dipped by 2 pct to 6,16,461 units from 6,31,195 units due to increased buyers interest in available units.
Cities Included for the Study
Nine cities were included for the study of PropEquity including Gurgaon, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru, Thane and Chennai.
Gurgaon witnessed a 43% fall in Q2 in new launches as approx. 2,138 units were launched during the period. Absorption also fell by 58 per cent as customers delayed their buying decisions for the next quarter.
In Noida, few projects were launched in the quarter and total units launched stood at 621 units, a decline of 33 % QoQ. Absorption fell by 11% QoQ.
New launches witnessed drop of 9% in the quarter, but absorption increased by 28 per cent in QoQ as earlier launched units were being absorbed at attractive offers.
Q2 2018 witnessed a considerable fall in new launch activity compared to Q-o-Q as it fell 47% to 1,815 units. Absorption increased by a healthy 24% jump on Q-o-Q basis as projects nearing completion had solid demand.
New Launch activity in Q2 2018 witnessed a 19 per cent fall to 2,122 units on Q-o-Q basis. Absorption increased by 18%.
India’s IT capital saw a decline of 28% in the quarter with muted absorption of just 1% growth. The city is sitting on high unsold stock of 99,589 units.
Pune was one of the few cities, which witnessed a jump in new launches as it grew 40% to 6,371 units in the second quarter. Market also performed well in absorption as it increased by 34%.
Chennai also saw a jump of 24% in new launch activity in Q2 as 2,852 units were launched with 24% growth in absorption as well. Revival in the Chennai market is expected going ahead.
Q2 2018 witnessed a massive jump in new launch activity by 124% on Q-o-Q basis at 10,020 units. Absorption also witnessed a considerable jump of 34% as buyers interest revived drastically.