Home sales pan-India falls by 9% in Q3 due to slowing economic growth: PropEquity Study
2019 has performed better as more projects were completed and there is genuine demand in ready to move in properties
In a report released by PropEquity, India’s leading real estate data, research and analytics firm, sales or absorption of housing units fell by 9% across top 9 cities in India in the third quarter of 2019 to 52,885 units versus 58,060 units in Q2 2019.
Sales also witnessed a dip of 10% as compared to the same period last year. The slowdown in housing sales is largely due to fewer new launches, lack of buyer confidence in older under construction projects and liquidity crunch in the market.
New launches of housing units also witnessed a 24% fall in Q3 at 32,834 units versus 43,256 units in Q2 2019. The prime reason being the huge consolidation of developers and currently only Leading developers with excellent track records and strong balancesheets are only being able to get traction in sales.
However, 2019 has overall performed better versus 2018 as more projects got completed and there is a genuine demand in Ready to Move in properties.
“Demand has been definitely impacted in the last quarter with buyers delaying their decisions. The consolidation of developers has led to fewer new launches. However, in the last quarter projects launched by leading developers were absorbed in record time for example Ultima a ready to move in project by DLF in New Gurgaon recorded sales of over 70 percent inventory (0ver 700 crores) being sold out in a week time,” said Samir Jasuja, founder and managing director at PropEquity.
Nine cities were included for the study including Gurgaon, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru, Thane and Chennai.
Gurgaon: saw a massive fall of 87% in new launches in Q3 at just 280 units. Sales fell by 10% in the sequential quarter at 1,190 units.
Noida: saw no new launches in Q3 and sales fell 7%.
Mumbai: New launches witnessed a massive decline of 58% in Q3 at 1,862 units with absorption falling by 11% versus Q2 2019.
Kolkata: Surprisingly, Kolkata saw an increase of 62% in new launches in Q3 at 2,816 units with sales falling by 6% versus Q2 2019. New launches coincided with an Indian festival of Durga Puja, which is the main festival of Kolkata during which buyers decide on their major buying decisions such as buying or investing in a residential property.
Hyderabad: saw an increase of 134% in new launches in the quarter at 4,787 units. Housing sales fell by 8%.
Bengaluru: India’s IT capital saw an increase of 41% in new launches in the quarter at 9,509 units. Housing sales fell marginally by 3%.
Pune: saw a fall of 46% in new launches at 6,341 units in Q3, absorption also fell by 8% to 14,669 units.
Chennai: saw an increase of 10% in new launches in Q3 at 2,749 units but sales fell by 23% versus Q2 2019 at 3,060 units.
Thane: witnessed a fall of 58% in new launches in the quarter at 4,490 units, absorption fell by 12% in Q3 at 10,714 units versus Q2 2019.