No Hang-ups! 2019 May Be Year Of New Launches
With real estate authorities launching action, the year 2018 saw greater compliance among real estate builders. Consequently, unsold inventory across India’s top nine property markets reduced, with a 23 per cent increase in home sales annually. In the New Year, we may also see new launches increasing in a more stabilising market. In the meantime, let us see how each city fared in the past year and how they would perform in 2019.
Ahmedabad: With the Ahmedabad Metro in the making, the micro-markets of the city showed activity in the past six months of the year. However, Ahmedabad is the city with biggest unsold inventory of 47 months. While the sales numbers have declined, there has been an increase of five per cent in property prices. For 2019, the property prices might see a correction if the demand continues to remain mute.
Bengaluru: Property market of Bengaluru was the most resilient as the unsold housing stock in the city is at its lowest levels in the past three years. In fact, over 42,000 new units were delivered in this year till September. With the rising demand for affordable properties, it’s time for developers to supply where the demand lies, especially along the Ring Road and near the airport.
Chennai: While the home sales increased in 2018, the inventory overhang, too, saw the lowest level in past three years. With a major focus on affordable projects, 2019 would be a year for price rise and affordable housing segment.
Gurgaon: In the past year, Gurgaon market has been stuck due to project delays. While the revival is possible in 2019, the sub-markets along western and eastern peripheral expressways can be new growth hubs for the city. The much-awaited Dwarka Expressway is also fueling the speculations of price rise as the completion date is near.
Hyderabad: Investors seeking capital appreciation has major reasons to invest in Hyderabad as the property prices have increased 22 per cent in the past three years. With inventory overhang of just 22 months, lowest in the country, the city still has an affinity for luxury properties, unlike other cities where the majority of the demand lies in the affordable housing segment.
Kolkata: Uncertainty in this property market prevails amid an ensuing dispute between the Centre and the state government. Much to the chagrin of the Centre as well as homebuyers, the West Bengal has launched its own version of the real estate law. That notwithstanding, the city recorded a rise of six per cent in property prices annually in the September quarter while the inventory overhang has come down to 22 months.
Mumbai: Home sales in the Mumbai Metropolitan Region have been consistently increased despite it being an expensive property market. With a pro-active real estate regulatory authority, homebuyers have begun to leave the fence. However, the inventory overhang is still high here.
Noida: With many prominent developers facing insolvency, buyers’ sentiment in this market is definitely hurt. However, home sales have increased 59 per cent in Noida in the second quarter amid a decline in inventory overhang. With Better connectivity through the arrival of the Noida-Greater Noida Metro, the prospects of Noida are going to be brighter in 2019
Pune: In this largely stable market, demand for affordable housing has been immense. Sensing the demand, developers are launching projects in the Rs 25-50-lakh price bracket. The upcoming Metro will make this even better for the cultural capital of Maharashtra.