[ecis2016.org] New launches of residential units increased by 17% across Bengaluru, Hyderabad and Chennai in Q1 2019, as compared to the previous quarter, with Bengaluru leading the way, says a report by Vestian
Approximately 17,328 new residential units were launched in the three southern cities of Bengaluru, Hyderabad and Chennai in Q1 2019 – 17% higher than the previous quarter, according to the Vestian Quarterly Newsletter, ‘ The Connect Q1, 2019’. Bengaluru led the lot, with a share of 48% of the total new launches, the report added. Hyderabad accounted for a 27% share, while Chennai accounted for 24% of the total new residential launches in these three cities.
You are reading: Housing launches rise in Q1 2019 by 17% in southern India cities, led by Bengaluru: Report
The increase portends the fact that developers are finally launching new projects, post the short-term impediments brought forth by regulatory changes, the report added. New launches were largely observed in the affordable and mid-segment budget category of Rs 35-80 lakhs, owing to firm end-user demand in these categories and the push given to the sector by the government.
“On the residential front, the affordable housing sector is projected to continue to drive market growth in 2019, aided by the transparency brought about by recent policy implementations. The sector has received a substantial boost, with the recent lowering of tax on affordable housing and residential projects by the government. The GST Council’s decision, to cut the rate on affordable housing from 8% to 1%, without input tax credit and houses under construction from 12% to 5%, is expected to address the needs of home buyers and enhance the offtake of residential units. Additionally, the Council also expanded the scope of affordable housing and it will now consist of a residential unit of a carpet area of up to 90 sq m in non-metros and 60 sq m in metros, thereby, augmenting the sector’s supply and attracting new interested parties into the fold,” the report stated.
Bengaluru housing market in Q1 2019
Bengaluru saw the number of new residential launches increase substantially by 23% in Q1 2019, as compared to Q4 2018. The number of new launches were recorded at 8,351 units during the period, accounted for largely by the northern region.
Northern micro-markets such as Jakkur, Hennur, Yelahanka and Thanisandra Road saw several prominent developers, viz., Godrej, Puravankara and Shriram Properties, amongst others, launching their projects in the region owing primarily to the region’s rising demand as an office destination and its proximity to the international airport. The northern region was followed by south Bengaluru.
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Meanwhile, capital values of completed as well as under-construction projects remained mostly steady with upward changes seen in key projects in preferred micro-markets, particularly in the north.
Bengaluru residential capital values for apartments, Q1 2019
| Micro-location | Mid segment | Premium segment | Luxury segment |
| Central | – | 10,500-14,000 | 18,000-36,000 |
| Off-Central | – | 6,800-12,000 | 16,000-22,000 |
| Bannerghatta Road | 4,500-5,500 | 6,000-8,500 | – |
| Hosur Road | 4,500-5,400 | 5,800-7,000 | – |
| Sarjapur Road | 4,600-5,800 | 6,000-7,500 | 8,000-11,000 |
| Whitefield | 4,800-5,800 | 6,000-7,500 | 8,500-12,000 |
| Bengaluru North | 4,300-5,800 | 6,350-8,200 | 8,500-13,500 |
| Tumkur Road | 3,500-4,750 | – | – |
| Mysore Road | 3,800-4,900 | 6,000 | – |
| Kanakapura Road | 4,350-5,500 | 6,100-8,500 | – |
| Old Madras Road | 4,500-5,750 | 5,890-6,500 | – |
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Prices are in Rs per sq ft
Source: Vestian Research
[ecis2016.org] Home launches pan-India, up by 3% in Q1 2019: Study
Chennai housing market in Q1 2019
Chennai saw the launch of 4,229 new residential units during Q1 2019, depicting an increase of 10%, over the previous quarter. This has renewed market sentiment to some extent as Chennai’s residential sector had remained subdued for most part, being bogged down by several issues ranging from political uncertainty to new policy measures and an overall slowdown in the economy. Of late, there is a perceptible improvement in buyer confidence, post the regulatory reforms, thereby, encouraging developers to explore the affordable and mid-income residential segments. Not surprisingly, a majority of the new launches in Q1 2019 were in the affordable and mid-segment budget category, driven by factors such as GST benefits and broadening of the definition of affordable housing.
Besides, a large number of launches were observed in the southern peripheral locations such as Padur, Karapakkam and Sholinganallur, which are preferred by professionals engaged in the IT/ITeS sector, owing to their proximity to the employment hubs and the strengthening commercial activity in these regions. In the meantime, capital values remained stable across all micro-markets in the city, although, going forward, there is the likelihood of a price increase owing to the inauguration of metro lines towards the central and off-central locations of the city.
Chennai residential capital values for apartments, Q1 2019
| Micro-location | Mid segment | Premium segment | Luxury segment |
| Central | – | 10,000-15,000 | 20,000-28,000 |
| Off – Central | – | 6,000-10,500 | 12,000-18,000 |
| OMR | 4,500-5,300 | 6,400-7,000 | – |
| GST | 4,000-4,700 | 5,000-6,000 | – |
| East Coast Road | – | 7,000-9,000 | 9,500-11,000 |
| Oragadam | 3,500-4,800 | – | – |
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Prices are in Rs per sq ft
Source: Vestian Research
Hyderabad housing market in Q1 2019
Hyderabad’s residential market witnessed the launch of 4,748 units in Q1 2019, riding on the back of strong market sentiment, owing to buyer-friendly regulatory changes and a robust office market. This signified an improvement of 25% over the number of new launches in Q4 2018.
A majority of the new launches were in the western zone of the city in locations such as Kondapur, Bandlaguda and Manikonda, which have gained prominence as residential neighbourhoods, on account of their proximity to employment hubs in the region. The expansion of the city’s office markets has also connected with corridors radially outwards along the ORR, thereby, leading to a number of new launches in the western peripheral locations. With reasonable infrastructure in place, along with good connectivity in key markets, the city is expected to witness improved buyer confidence, thereby, attracting more investors and developers to the city.
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Hyderabad residential capital values for apartments, Q1 2019
| Micro-location | Mid segment | Premium segment | Luxury segment |
| Banjara Hills | – | 8,000-12,000 | 11,000-15,000 |
| Jubilee Hills | – | 6,500-12,000 | – |
| Himayath Nagar | 5,000-6,000 | – | – |
| Maredpally | 4,200-6,000 | – | – |
| Begumpet, Somajiguda | 4,000-5,300 | 5,500-7,000 | – |
| Madhapur, Gachibowli | 4,000-5,350 | 5,500-7,500 | – |
| Kukatpally | 3,700-4,500 | 4,500-6,000 | – |
Read also : PMAY status: How to track your Pradhan Mantri Awas Yojana status with Aadhaar and other IDs
Prices are in Rs per sq ft
Source: Vestian Research
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