The push provided by the central government to affordable housing has spurred the demand for it and there has been a corresponding increase in supply too. Data from ANAROCK Property Consultants show that during the quarter ended June top seven cities have witnessed a whopping 41% year-on-year jump in overall new housing launches, with the maximum supply falling in affordable segment with prices less than Rs 40 lakh. Interestingly, the supply in the affordable segment increased 100% during the quarter as against the previous quarter, which drove the overall growth.
Housing sales across categories rose 3% from a year ago to 60,800 units. Interestingly, Bengaluru saw maximum increase of 32% in housing sales at units this year during the second quarter as compared to 2017.
“While the sales numbers have been relatively slower, the positive impact of the policy reforms including RERA and GST have begun to bear fruit,” said Anuj Puri, Chairman, ANAROCK Property Consultants. “The affordable segment has kept the momentum going in Indian real estate in Q2 2018 with a significant increase in both the new launch supply and the housing sales numbers.
The top 7 cities including Delhi-NCR, Mumbai Metropolitan Region, Chennai, Bengaluru, Pune, Kolkata and Hyderabad witnessed close to 50,100 units launched during the quarter. Major cities contributing to new unit addition include MMR, NCR, Bengaluru and Pune, altogether accounting for 75% of the new supply.
Unsold inventory across these cities has declined 10% year-on-year to 7 lakh units as on June end. The developers are looking to clear unsold inventory and so offering attractive schemes, freebies and discounts, which is attracting home buyers to seal the deal.
Interestingly, developers are consciously launching units in those price brackets that suit most home buyers so as to steer clear of any demand-supply mismatch, Puri added.