By Accommodation Times Bureau
Absorption of housing units jumped by 18% across the top 9 cities in India in the fourth quarter of 2018 to 56,829 versus Q4 2017, according to PropEquity.
On the sequential quarter basis, sales (absorption) also increased by 7% from Q3.
Realty sector in India is currently on the upswing, primarily for ready to move housing units or the projects that are nearing competition due to low-risk factors attached to them.
On Wednesday it launched its report in which new launches saw a decline of 9% YoY and 2% QoQ as developers were clearing previously launched projects. New launches were also impacted the due on-going crisis in the NBFC sector, which led to challenges for some of the debt-ridden real estate companies.
“2019 is going to be a watershed moment for Indian real estate sector. We are witnessing solid demand for ready to move and nearing completion projects, which primarily cater to end-users. New launches which saw a tepid demand in 2018, will witness growth in 2019, post-budget announcement, especially for the affordable and mid-income housing segment,” said Samir Jasuja, founder and managing director at PropEquity.
Unsold Stock also dipped by 6% in QoQ and 10% owing to fewer launches an increase in absorption.
Nine cities were included for the study including Gurgaon, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru, Thane and Chennai.
Cities wise data:
Gurgaon: Gurgaon saw 100% jump on new launches in Q4 as many new launches were announced in the quarter. Absorption also an increase of 27% to 1,264 units in QoQ period.
Noida: Noida saw absorption jump 15% in the quarter and 6% YoY indicating decent sales in the quarter. However, new launches took a plunge and fell 54% to just 385 units in the quarter.
Mumbai: New launches witnessed a fall of 1% in QoQ with absorption increased by 5% per cent as earlier launched units were being absorbed in attractive rates.
Kolkata: Kolkata saw a fall of 22% in new launches in Q4 with sales also crashing by 32% in QoQ as this market witnessed declining housing demand.
Hyderabad: Absorption increased by 9% in Q4 with 13% drop in unsold stock.
Bengaluru: India’s IT capital saw an increase of 3% in absorption in the quarter. The city with a high-unsold stock of 94,052 units saw a decline of 6% in unsold stock.
Pune: Pune saw a fall of 13% in new launches at 5,552 units. Absorption went up by 14% at 13,995 units for Q4 and for YoY it went up by 32%.
Chennai: Chennai also saw a jump of 12% in absorption in Q4 at 4,161 units and 70% YoY.
Thane: Thane saw a fall of 16% in new launches in the quarter, but absorption increased by 18% in Q4. The unsold stock fell by 7% to 1,35,652 units in the quarter.