New project launches in India’s nine key residential markets continued to show a decline, falling 44 per cent year-on-year in the period between October and December 2019, primarily on liquidity concerns, shows the report by PropTiger.com, part of Elara Technologies, that also owns Housing.com and Makaan.com.
New launches as well as housing sales saw a sharp dip in Pune during the period between October and December even as the city contributed significantly to the overall unsold stock seen across India’s nine major residential markets.
Only 7,570 units were launched in Pune during the October-December quarter, registering a fall of 59 per cent when compared to new launches in Q3FY19. Sales also declined 39 per cent annually during the quarter, and were restricted at 11,946 units.
As it stands today, the city has an inventory consisting of nearly 1.45 lakh units — nearly 66 per cent of this stock is units priced within the Rs 45-lakh bracket. At the current sales velocity, builders would take two years and three months to sell of this existing stock.
With a two percentage point year-on-year increase, property values have also appreciated only marginally to reach Rs 4,874 per square foot.
According to “Real insight Q3FY20”, a quarterly analysis of India’s nine key property markets by PropTiger DataLabs, the ongoing industry concerns related to the NBFC sector, on which real estate developers largely depend on for their financial needs, has made borrowing difficult for builders at a time when a demand slowdown has hit housing sales. This double whammy has resulted in developers continuing to show a cautious stance towards new project launches.
“The various measures launched by the government in the recent past to revive growth in the real estate market seem to have made little impact. Considering real estate is a major contributor to overall GDP, which hit a glacial 4.5 per cent rate of growth in the July-September period, we expect further assistance from the government, which would nudge buyers to invest in real estate. In the Union Budget scheduled to be released on 1st February, we expect the Hon’ble Finance Minister to announce measures that would result in higher savings for individual taxpayers, some of which would hopefully make its way towards property purchases,” said Dhruv Agarwala, Group CEO, Elara Technologies, the country’s only full stack real estate technology platform that owns Housing.com, Makaan.com and Proptiger.com.
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