India’s top 9 cities witness a growth trajectory in the number of housing units, which showed an uptick by 3 percent in the first quarter (Q1) of 2019. Seeing the buyer’s confidence revive again in the residential market, developers seem more optimistic as new housing launches increases to 42,504 units in India top cities such as Hyderabad, Gurgaon, Mumbai, New Delhi, Bangalore, Chennai, etc.
Succeeding the seven percent dip in 2018, there has been a slow but steady rise in number of new housing units. The developers are invested in both launch of new residences as well as clearing the existing inventory of unsold units in the country. The inventory slew by four per cent as compared to the previous year’s quarter (Q1 2018). The market improvement can be credited to increased buyers’ demand.
The capital values across the nine cities weren’t much affected, except Hyderabad which saw a comparative one percent rise. Hyderabad stands at the top of the position in terms of new launches (100 per cent rise to 3,026 units launched), followed by Noida, and Thane (Mumbai).
“As ready to move housing units’ become increasingly available, the demand has, thus, been thrifted upwards. The increase in buyers’ demand also led to an increase in buyer’s absorption rate, as much as five per cent approximately. We expect the positive shift to last in the forthcoming years.” say real estate experts at Modi builders.
With buyers having access to risk-free options at considerable prices, Samir Jasuja, founder and managing director at PropEquity also seemed optimistic about the Indian real estate sector. He says
“With beneficial announcements for the real estate in the budget, we can witness further push to housing demand, especially in the affordable and mid-income segment. Branded and large developers with good fundamentals are expected to do well this year.”
The residential real estate market has been previously impacted by buyers’ distrust and lack of delivery commitments on the part of developers. Various instances from the past can be highlighted wherein empty promises were made on developers’ end, which adversely affected the buyers’ confidence in the industry.
However, as the trend reverse, future prospect of the residential real estate seem promising, including sectors job creation, proper market STP (segmentation, targeting and positioning) and timely project completion (RERA plays a detrimental role).