- Unsold Real Estate units across the top 9 markets have come down by 9% y-o-y to 7,57,000 units.
- Sales in the top 9 cities have come down by 18% quarter on quarter in Q2 CY’18.
- 52% reduction in sales in Gurugram can be primarily attributed to drop in new launches of affordable housing units.
A new report released today reveals that Real Estate launches across top 9 cities declined 20% over Q2 last year whereas sales were within 2% of last year. 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 an increase in new launches. However, last year Q2 was an aberration as developers advanced their launches to avoid approvals under RERA regime.
PropTiger.com, part of Elara Technologies Pte Ltd which also owns Housing.com and Makaan.com, revealed these findings in its ‘Realty Decoded Report’ for Q2 (Apr-May-Jun) 2018.
As per the report, after a stupendous Q1 CY’18 sales performance, developers did not show similar aggression in marketing and sales efforts in Q2 CY’18. Most developers are saving their marketing budgets for upcoming festival quarters in Q3 and Q4 CY’18. Though there is a silver lining for the industry as both Mumbai and Pune which contributes ~50% to overall sales have seen their sales increasing by 15% and 9% respectively.
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 next two quarters driven by an uptick in the economy as well as stabilization 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.”