[ecis2016.org] New property launches in Q2 CY2018, across the top nine cities, decreased by over 20 per cent, with developers waiting for the festive season to begin, while sales remained stable, according to PropTiger’s Realty Decoded Report for Q2 2018
New launches across the top nine cities declined by 20 per cent in Q2 2018 (April, May and June) over Q2 2017, whereas, sales were within two per cent of last year, according to PropTiger.com’s ‘Realty Decoded Report’ for Q2 2018. The quarter did not witness many new launches, as developers are waiting for the festive season to launch new projects. Large cities, such as Mumbai and Pune, had a drop in new launches, whereas, markets such as Noida, Bengaluru, Hyderabad and Chennai, experienced increase in new launches. However, last year Q2 was an aberration, as developers advanced their launches to avoid approvals under the Real Estate (Regulation and Development) Act (RERA) regime.
You are reading: New launches struggle, sales remain flat in Q2 CY2018: PropTiger Realty Decoded report
After a stupendous Q1 CY2018 sales performance, developers did not show similar aggression in their marketing and sales efforts in Q2 CY2018. Most developers are saving their marketing budgets for the upcoming festival quarters in Q3 and Q4 CY2018. Nevertheless, there is a silver lining for the industry, as both, Mumbai and Pune, which contribute nearly 50 per cent to overall sales, have seen their sales increasing by 15 per cent and nine per cent, respectively.
[ecis2016.org] New housing launches increase by 50 per cent in Q2 2018
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The study covered nine key Indian cities of Mumbai, Pune, Noida, Gurugram, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad. Commenting on the report, Ankur Dhawan, chief investment officer, PropTiger.com, said “This was a decent quarter for the real estate sector and the numbers reveal that the market is changing for good. We expect both, new launches and sales, to show improvements in the next two quarters, driven by an uptick in the economy, as well as stabilisation of regulatory infrastructure. Mumbai, Pune, Bengaluru and Noida have shown substantial improvement in the last quarter and we anticipate these cities to be the star markets in 2018.”
Key highlights of the report
- Bengaluru and Noida witnessed more than 50 per cent increase in new launch units over 2017, while Hyderabad saw a 30 per cent increase in new launch units over the last year.
- Nearly 51 per cent sales increase noted in Noida, followed by Mumbai at 15 per cent and Pune at nine per cent.
- Ahmedabad had the worst quarter with both, launches and sales, down by more than 50 per cent
- Unsold units across the top nine markets came down by nine per cent y-o-y to 7,57,000 units.
- Sales in the top nine cities came down by 18 per cent, quarter on quarter, in Q2 CY2018.
- A 52 per cent reduction in sales in Gurugram, can be primarily attributed to the drop in new launches of affordable housing units.
City-wise highlights
Ahmedabad
- New project launches declined by 72 per cent, while sales fell by 44 per cent, year-on-year.
- The below Rs 25 lakhs segment accounted for 27 per cent of the sales, while 44 per cent of the sales were in the Rs 25-50 lakhs segment.
- Base selling price increased by two per cent to Rs 2,970 per sq ft.
- Inventory overhang increased by 39 per cent to 46 months.
Bengaluru
- New project launches increased by 72 per cent, while sales grew by three per cent, year-on-year.
- The Rs 25-50 lakhs segment accounted for 34 per cent of the sales, followed by 28 per cent in the Rs 50-75 lakhs segment.
- Base selling price increased by four per cent to Rs 5,043 per sq ft.
- Inventory overhang reduced by 13 per cent to 27 months.
Chennai
- New project launches increased by 106 per cent, while sales fell by eight per cent, year-on-year.
- The Rs 25-50 lakhs segment accounted for 45 per cent of the sales, followed by 19 per cent in the Rs 50-75 lakhs segment.
- Base selling price remained unchanged at Rs 5,089 per sq ft.
- Inventory overhang reduced by 13 per cent to 27 months.
Gurugram
- New project launches declined by 79 per cent, while sales fell by 50 per cent, year-on-year.
- The over Rs one crore segment accounted for 39 per cent of the sales, followed by 26 per cent in the Rs 75-100 lakhs segment.
- Base selling price reduced by four per cent to Rs 5,852 per sq ft.
- Inventory overhang reduced by 46 per cent to 30 months.
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Hyderabad
- New project launches increased by 28 per cent, while sales fell by 13 per cent, year-on-year.
- The Rs 50-75 lakhs segment accounted for 33 per cent of the sales, followed by 25 per cent in the Rs 25-50 lakhs segment.
- Base selling price increased by nine per cent to Rs 4,417 per sq ft.
- Inventory overhang increased by 17 per cent to 26 months.
Kolkata
- New project launches decreased by 37 per cent, while sales fell by 29 per cent, year-on-year.
- The Rs 25-50 lakhs segment accounted for 42 per cent of the sales, followed by 24 per cent in the below Rs 25 lakhs segment.
- Base selling price increased by one per cent to Rs 3,844 per sq ft.
- Inventory overhang increased by 29 per cent to 41 months.
Mumbai
- New project launches decreased by 39 per cent, while sales improved by 15 per cent, year-on-year.
- The below Rs 25 lakhs segment accounted for 37 per cent of the sales, followed by 22 per cent in the above Rs one crore segment.
- Base selling price increased by seven per cent to Rs 9,191 per sq ft.
- Inventory overhang decreased by 11 per cent to 45 months.
Noida
- New project launches increased by 129 per cent, while sales also improved by 59 per cent, year-on-year.
- The Rs 25-50 lakhs segment accounted for 44 per cent of the sales, followed by 22 per cent in the Rs 50-75 lakhs segment.
- Base selling price decreased by one per cent to Rs 3,882 per sq ft.
- Inventory overhang decreased by 29 per cent to 40 months.
Pune
- New project launches fell by 22 per cent, while sales rose by 11 per cent, year-on-year.
- The Rs 25-50 lakhs segment accounted for 40 per cent of the sales, followed by 32 per cent in the below Rs 25 lakhs segment.
- Base selling price increased by six per cent to Rs 4,961 per sq ft.
- Inventory overhang reduced by seven per cent to 38 months.
Source: https://ecis2016.org/.
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Source: https://ecis2016.org
Category: Lifestyle
