The upward growth in sales and dip in new launches led to 11 per cent decline in unsold housing stocks to 5,89,503 units in June quarter 2019 as against the year-ago period.
Housing demand went up six per cent but supply fell 11 per cent during April-June period across nine major cities, according to data analytics firm PropEquity. The nine cities included in the study are Gurugram, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru, Thane and Chennai.
Housing sales increased six per cent across the nine cities during April-June 2019 to 61,789 units as against 58,292 units in the year-ago period. New launches came down 11 per cent to 51,108 units from 57,425 units, during the period under review. The upward growth in sales and dip in new launches led to 11 per cent decline in unsold housing stocks to 5,89,503 units in June quarter 2019 as against the year-ago period.
PropEquity said the Indian real estate market is currently end-user driven and both ready projects and new launches are selling well. It noted that developers who have launched projects from 2018 onwards have ensured the right ticket price by reducing the size.
“We have observed that new launches from reputed developers are receiving an encouraging response from the market. The consolidation and consequent shrinking of the market combined with the developers reducing the unit sizes to enhance affordability and boost volumes is working together in favour of sales,” PropEquity founder and Managing Director Samir Jasuja said. “Thus absorption levels are going up, which is expected to continue as minimum demand for housing is pre-existing and we expect the demand to climb further,” he added.
According to the data, housing sales in Bengaluru rose 18 per cent to 10,859 units during April-June 2019 as against the year-ago period. Noida saw 16 per cent rise in demand at 1,193 units. Sales in Chennai went up 15 per cent to 4,687 units, while Pune witnessed 13 per cent rise in sales at 16,025 units.
Mumbai and Gurugram saw 8 per cent rise in demand to 6,125 units and 2,378 units, respectively. Housing sales in Thane rose marginally by 2 per cent to 13,656 units. However, sales were down in Hyderabad by 11 per cent at 4,219 units. Kolkata saw 14 per cent fall in demand at 2,647 units.
PropEquity is an online subscription-based real estate data and analytics platform covering over 1,11,048 projects of 31,056 developers across 44 cities in India.