New Residential Unit Launches Increased: Anarock Property Consultants
According to ANAROCK Property Consultants‘ latest research, 2018 has started on a positive note with new residential unit launches making a comeback and recording a 27% increase in Q1 2018 from the previous quarter across top 7 cities of India. With policy reforms and structural changes now in place, developers are intent on making up for the lost ground.
In Q1 2018, sales across top 7 cities of India also rose by 12% compared to Q4 2017, indicating that serious homebuyers are back, attracted by the new environment of transparency, accountability and financial discipline.
“The series of policy reforms and structural changes have transformed the way Indian real estate business is conducted. This has been a definite blessing. The sector is by no means out of the woods yet, but we are now seeing some green shoots of recovery,” says Anuj Puri, Chairman – ANAROCK Property Consultants. “The market has turned end-user friendly and 2018 is bringing new residential unit launches that match demand. The days of product mismatch are on their way out.”
- The top 7 cities recorded new unit launches of around 33,300 units in Q1 2018 as opposed to 26,300 units in Q4 2017.
- Key cities contributing to Q1 2018 new unit launches included MMR (Mumbai Metropolitan Region), Bengaluru and Kolkata, altogether accounting for 66% of addition.
- 6,500 units were launched in Kolkata – a massive rise of over 300%from Q4 2017. A large affordable housing project of around 3,500 units was a key contributor to the rise in new units hitting the market in the quarter.
- Bengaluru added 6,800 units in Q1 2018, a massive quarterly increase of 127%. This city has always adapted rapidly to changing market dynamics and is positioned particularly well for future growth.
- While MMR was a key contributor to new launches in Q1 2018, the city’snew launches recorded a drop of 25% from the previous quarter with 8,600 units. The previously intensely investor-driven city is now finally aligning itself to the changing market conditions with 87% unit additions in the sub-Rs 1.5 crore price bracket.
- Chennai added 2,100 units in Q1 2018 compared to only 1,000 units in Q4 2017 – a significant rise of 110%. With political stability and elimination of input material issues, the city seems to be back in action.
- NCR‘s contribution was 14% with 4,500 units, an 18% increase from the previous quarter. This region is also reorienting itself to actual housing demand, with 94% unit additions in the sub-Rs 1.5 crore price bracket.
- Pune‘s contribution was 7% with 2,200 units. Developers in this historically stable market are carefully calibrating the supply to avoid creating a serious demand-supply mismatch.
With more clarity on the back of faster clearances and approvals, new launches surged in Q1 2018. While there is an undeniable need to focus on executions to avoid penalization under RERA, timely new launches are also critical so that the secured approvals do not lapse. In terms of launches, 2018 has certainly commenced on a strong note. If demand picks up faster, we may witness a consummate increase in new launches as well.
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