Indian real estate sector recorded growth in 2019 despite headwinds of slowdown in the economy. According to Knight Frank India's latest report, the residential segment in top eight cities demonstrated unexpected resilience, recording a marginal growth of 1 per cent year-on-year (y-o-y) in sales volume in 2019. Total sales volume came in at 245,861 units in 2019 over 242,328 in 2018 as affordability improved, and developers aligned themselves with the needs of homebuyers by reducing ticket-sizes and unit-sizes in a bid to encourage sales. The first half of the year, however, experienced flat sales growth (1 per cent y-o-y) at 116,576 units.
Bengaluru registered the highest increase in sales at 10 per cent, followed by Hyderabad and Kolkata at 9 per cent each, and Chennai at 8 per cent in H2 2019. NCR saw a marginal rise of 2 per cent in sales, while Mumbai Metropolitan Region and Pune witnessed degrowth of 14 per cent and 10 per cent, respectively. According to the report, Hyderabad witnessed the highest annual rise in home prices during 2019 at 10 per cent. It was the only city to register a double-digit growth.
Bengaluru saw a 6.3 per cent y-o-y rise in home prices, followed by NCR at 4.5 per cent, Kolkata at 3.1 per cent and Ahmedabad at 2 per cent. Mumbai, Pune and Chennai witnessed degrowth in home prices at 2.5 per cent, 3 per cent and 5 per cent, respectively.
New residential unit launches across top eight cities in India grew by a robust 23 per cent to 223,325 units in 2019. The growth in launches was more pronounced in H2 2019, at 25 per cent to 112,150 units; 61 per cent of launches in H2 2019 occurred in ticket sizes under Rs 50 lakh and 81 per cent under Rs 1 crore as developers focussed on affordable housing and lower ticket sizes. Mumbai saw the highest number of homes launched in 2019 at 79,810 units, followed by Pune at 44,660 units, and Bengaluru at 33,772 units.
Unsold inventory across the top eight markets improved in 2019, registering a 5 per cent decline to 445,836 units. Mumbai had the highest quantum of unsold inventory at 145,301 units, followed by NCR at 122,084 units and Bengaluru at 78,414 units.Gold price slips from 7-yr high as investors shrug off US-Iran tension