The key cities contributing to Q3 2019’s new unit launches included MMR (Mumbai Metropolitan Region), Pune, Bengaluru and Delhi NCR, which together accounted for 83% of the supply additions.
A ban on subvention schemes, coupled with monsoon rains and the inauspicious period of Shraadh, has impacted the already subdued residential real estate space with sales declining 20% quarter-on-quarter (q-o-q) during Q3 of calendar year (CY) 2019. Housing sales fell in all top markets with the exception of Kolkata, where it rose 19% compared to the previous quarter.
According to the latest Q3 2019 numbers from Anarock Property Consultants, sales witnessed a quarterly decline of 20% across the top 7 cities, from 68,600 units in Q2 2019 to 55,080 units in Q3 2019. On a y-o-y basis, housing sales fell 18%.New launches too fell 34% over the same period, from 69,020 units in Q2 2019 to 45,230 units in Q3 2019, while y-o-y new launches fell 13%.“The ongoing Shraadh period, seen as inauspicious in many parts of the country, coupled with the ban on subvention schemes compounded the quarterly dip. Also, above normal and heavy rainfall impacted number of site visits resulting in longer decision-making cycle,” Anarock explained.
Among categories, affordable housing continued to score big, accounting for a 41% share of overall launches with 45,230 units during Q3 2019. It was followed by the mid-segment, which is priced between Rs 40-80 lakh, accounting for 36% of the sales.
“Decline in new supply and housing sales in this quarter was expected as both homebuyers and developers remained cautious and risk-averse. The slew of economy-boosting measures by the government to spur growth across sectors will very likely give the housing sector a leg-up in the festive season and the ensuing quarters,” Anarock chairman Anuj Puri said.
Overall unsold stock as in Q3 2019 is around 6.56 lakh units across top 7 cities, declining by a meagre 1% against the preceding quarter. However, developers were able to shed their overall unsold stock by at least 5% during the year, which stood at 6.87 lakh units back in Q3 2018, he added.
In terms of launches, the top 7 cities registered new launches of around 45,230 units in Q3 2019 against 69,020 units in Q2 2019 and 52,130 units in Q3 2018. The key cities contributing to Q3 2019’s new unit launches included MMR (Mumbai Metropolitan Region), Pune, Bengaluru and Delhi NCR, which together accounted for 83% of the supply additions.
Residential property prices across the top cities remained stagnant in Q3 2019 compared to the previous quarter. However, Pune and Kolkata saw prices decrease by 1% over the previous quarter. Yearly trends also indicate no major change except for NCR, MMR, Bengaluru and Hyderabad, which saw a mere 1% rise.