Affordable Housing Inventory at Over 4 Lakhs in Q1FY20: PropTiger
The ongoing slowdown is hindering the growth India’s affordable housing segment should have witnessed with increased government backing. Data available with PropTiger.com shows over four lakh housing units, priced below Rs 45 lakhs, remained unsold till the end of the April-June quarter of FY20, in India’s nine major cities. Sales of units priced within this range also declined seven per cent when compared to the same quarter last year. Since demand has been limited, supply has also decreased in this segment, with new launches falling by 56 per cent when compared to a year-ago period.
City-wise break up
Inventory: Data shows unsold inventory declined in all cities except Chennai, where it increased by 20 per cent. The sharpest decline in inventory was seen in Hyderabad. Mumbai contributes highest to the inventory stock with over 1.39 lakh affordable units lying unsold.
Affordable Housing: Unsold inventory as on quarter end
Sales: The sharpest decline in sales was registered in Noida (55 per cent) followed by Hyderabad (42 per cent) during Q1FY20. While the most impressive pick-up was registered in Gurugram at 59 per cent, sales also increased in Kolkata (15 per cent), Chennai (11 per cent) and Pune (8 per cent).
Home sales in affordable category
Launches: Except Gurugram, where launches saw three times the growth, they declined in all other cities during the quarter ending June, 2019. The highest number of new units during the quarter was launched in Pune (4,069) despite an annual depreciation of 59 per cent. The sharpest fall in launches was seen in Ahmedabad, where only 259 units were launched during the quarter ending June, as against 5,403 units in Q1FY19.
Launches in affordable category
Sales in the affordable housing segment is envisaged to move upwards in the upcoming quarters, with the government increasing the deduction limit on purchase of units below Rs 45 lakh. According to finance minister Nirmala Sitharaman, homebuyers will now get deductions of Rs 3.5 lakh on the interest paid towards purchase of affordable homes. Banks have also lowered their marginal cost of funds-based lending rates (MCLR). These monetary benefits will trigger fresh demand in this category, says Dhruv Agarwala, group chief executive officer, Elara Technologies. Developers will, however, continue to show restraint in launching new projects because of increased regulatory compliance and stressed liquidity conditions.
Home Sales, Launches Increased In Q3 FY'19; Inventory Declined, Shows Report
January 17, 2019: Home sales in India’s top nine markets increased by 30 per cent year-on-year in the third quarter of the current financial year (Q3FY19), with Pune and Mumbai contributing the highest to these numbers, a quarterly report by PropTiger.com shows. According to Realty Decoded, an analysis of nine key property markets in the country, a total of 73,691 housing units were sold during the quarter across the nine cities that include Ahmedabad, Bengaluru, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida and Pune. New launches, too increased three per cent during the quarter while inventory stock lying across the cities declined by 10 per cent in Q3 FY’19.
Pune and Mumbai were the show-stealers when it came to home sales during the quarter. While home sales increased 59 per cent in Pune, it shot up 54 per cent in India’s financial capital Mumbai. Gurgaon was the only exception during the quarter where home sales declined 26 per cent during the quarter. Interestingly, the Millennium City saw new launches going up 146 per cent, the highest seen by a city in the December quarter. Other cities where new launches increased significantly in Q3 include Bengaluru (136%), Chennai (96%), Pune (69%) and Kolkata (8%). Cities where new launches declined y-o-y include Hyderabad (66%), Noida (56%), Mumbai (48%) and Ahmedabad (19%).
While a combination of reduced launches and improved sales has brought down unsold inventory by 10 per cent to 799,081 units during the quarter, inventory overhang has also decreased to 31 months as compared to 34 months in the previous quarter.
At 21 per cent, Noida saw the sharpest annual fall in its inventory stock in Q3. Hyderabad (13%), Mumbai and Chennai (12% each) markets also saw their inventory stock declining significantly.
Currently, Ahmedabad has the highest inventory overhang of 45 months, followed by Kolkata at 41 months. Hyderabad has the lowest inventory overhang of 20 months, followed by Chennai and Bengaluru, at 22 and 24 months, respectively.