Your Guide To Deep Clean Your Home

We all want our homes to be spick and span all the time. While we do our best to ensure our homes remain clean always, there are areas where a daily cleanup is just not possible. These need a deep clean. We have talked about deep cleaning across our articles. But, what exactly is deep cleaning and how is it different from the regular cleaning?

Basic cleaning is the daily cleaning routine that we follow using regular cleaning products. During this process, the things that are out in the open and in vision are cleaned and kept dust-free. On the other hand, deep cleaning is a process that we perform once in, say, six months. During this process attention is paid to clean those tiny corners that need dirt removal and disinfection. While basic cleaning would take an hour or so on an average, deep cleaning could take hours.

Also read: Moving Into A New Home? You Would Need The Help Of These Professionals

Things done during regular cleaning

  • Dusting ceiling fans and light fixtures
  • Removing cobwebs
  • Dusting blinds and window sills
  • Dusting articles of furniture
  • Dusting photo frames and other decorative
  • Cleaning of appliances including refrigerator, microwave and water purifier/dispenser
  • Cleaning of stove-top and backsplashes
  • Scrubbing sinks
  • Windexing mirrors
  • Wiping of bathroom vanity, tubs, and other fixtures
  • Emptying laundry bags
  • Changing bedsheets
  • Vacuuming carpets, flooring and staircase

Things done during deep cleaning

  • Removing and washing of ceiling fan blades
  • Using disinfectant to clean light fixtures
  • Cleaning vacuum blinds and shutters
  • Wiping furniture with disinfectant and waxing/polishing furniture and other woodwork
  • Washing of lampshades
  • Scrubbing stovetop and other pans
  • Use cleaning liquid to rub cabinet doors
  • Use disinfectant to clean light switch plates
  • Windex mirrors
  • Scrub bathroom fittings, flooring, tubs and vanity using disinfectant
  • Mop flooring, staircase with disinfectant
  • Vacuum carpets or get them dry-cleaned

But while you clean, here are some tips to keep in mind:

  • Cleaning your home in a wrong order will cost you time. It is essential that you first clean the ceiling and then the floor.  Always clean things or room area that needs a lot of attention. Then go for the ones that can be cleaned easily.
  • Do not use glass cleaning agents for electronic devices. Use specific cleaning agents recommended for that particular area. Clean materials such as leather with a recommended cleaning agent. Avoid use of abrasive cleaner on the surfaces. When used in excess these cleaners can damage the materials. A simple soft scrub soaked in soap water can clean metal, plastic and painted surfaces. If the intent is to disinfect an area, then read the label to check whether your way of cleaning meets the purpose.
  • Always cover your hands. Never spray your cleaner directly onto the surface. Instead spray the cleaner on the cloth and then use it for wiping. This will save the amount of cleaner you consume reducing the chance of chemical burn.
  • Do not wash windows on a sunny day. When exposed to sunlight, the glass cleaners leave streaks and are bad for drying up.
  • Avoid over-filling the dishwasher. This will reduce the effectiveness of the wash.
  • Keep aside different sponge clothes for the bathroom, kitchen sink and floors. Replace the kitchen sponge when it starts to stain and fall apart.
  • Clean the carpet spills as soon as possible. Never scrub your carpet as scrubbing is ineffective. Instead blot the satin with a dry towel, then soak the area in ice water.
  • Do not neglect the rubbish bin. Avoid using the same cloth for all the rooms.

With inputs from Mishika Chawla

Vastu Tips For Healthy Relationships

A healthy relationship between couples ensures harmony and prosperity at home. This enables positive growth for an individual in both personal and professional life.

To help you achieve this, Vastu, a study that can help attract good luck, positivity and happiness, suggests some do’s and don’ts which you could follow.

In this final instalment of a four-part series of Vastu tips, PropGuide lists tips to ensure a healthy relationship between couples:

 

Do’s:

  • For a happy and balanced love life, south, west and southwest are the ideal directions to have a bedroom in.
  • Place aromatic candles in the southeast direction to allow the positive energies to flow in.
  • Always keep the bedroom fresh and clean. This ensures a happy love life.
  • Wood is said to emit warm energy. Opt for a bed made of wood for a strong love life. Also, buy one double mattress rather than two single ones.
  • Keep fresh flowers in the bedroom, instead of artificial ones, for a long-lasting relationship.
  • Prefer sleeping with your head in the south direction.
  • Choose light tones of green, blue, and rose to paint the walls, and have light-coloured bed spreads on the bed. These give a soothing effect to the bedroom.
  • Decorate your home with beautiful crystal lights; they are known to illuminate your relationship.  
  • For a loving and smooth relationship, the female partner should prefer sleeping on the left side of the male partner.
  • Ensure proper lighting in the bedroom for a healthy relationship.

 

Don’ts:

  • When feeling unhappy, angry or sad, avoid being in the bedroom.
  • Avoid things like laptops, iPads, briefcases, files, books, etc, in the bedroom to prevent interruption in love life. In other words, ‘never’ carry your professional work to your bedroom.
  • Avoid any beam crossing over the head, as it is considered inauspicious and adversely affects the relationship of the couples.
  • Do not place mirror on the wall opposite your bed, as it causes stress and sleep disorders.
  • Avoid keeping the bedroom cluttered, as it obstructs the flow of positive energy and calls for clashes and conflicts between the couples.

 

Planning To Buy A Resale Property? Here’s Your Guide

Are you planning to buy your dream home but want immediate possession rather than waiting for the completion of an under-construction property? Then, a resale property could be the most viable recourse.

Resale property is an economical bet, as compared to opting for a ready-to-move-in property due to factors including depreciation, age of property, definite final cost of the asset, etc. But, purchase of a resale property has too many legal and technical implications and procedural requirements.

MakaanIQ helps you know more about a resale property.

What is a resale property?

Resale signifies that a property is being sold by the person who was allotted the same property. In other words, when property once purchased is now put on sale by the initial buyer, the property is said to be on resale. The resale of property can either take place from the first assignee or from the beneficiary, who had purchased the property from some other party.

Resale by first beneficiary

In case of financing the purchase of resale properties wherein the sale agreement has been executed between the home loan applicant and the first time beneficiary (i.e. the person to whom the developer had initially allotted the property), without transfer of possession of property, the following is to be complied with to get the funding from the lender:

  • Banks compute Loan-to-Value ratio (LTV) on lower of the document value (i.e. the agreement value on the basis of agreement to sell or ATS) and the market value of the property, as per the empanelled technical valuator’s report.
  • No Objection Certificate (NOC) must be obtained from the developer regarding the sale of the proposed property by the present assignee for creation of mortgage.
  • Tripartite Agreement (TPT) must also be executed between the home loan applicant, present assignee and the developer of the property.
  • The resale property transaction can only be executed if the property is at least 75 per cent constructed, as certified by the lender’s empanelled appraiser.

Marketability

One of the important aspects of buying a resale property is to ensure a clear marketable property title. After you finalise the second-hand or resale property, you need to make sure that there are no claimants on the property. This is why the legal verification of the property is initiated by the lender.

If the property in question has joint or co-owners, all of them must authorise the sale. The banks can refuse to offer the loan for the resale of property if any of the original documents are missing from the chain of titles of ownership papers. The age of the property is also a constraint for banks to fund money for the resale.

Loan on resale property

To check if there is a loan running on the resale property you plan to buy, the lender verifies if the original documents have been mortgaged with any bank or financial institution. No fresh resale home loan can be acquired until the existing owner repays the running loan in full and gets the original property papers released formally.

Technical valuation

The technical valuation and appraisal of the property plays a very crucial role in funding the resale properties. Most of the lenders fund up to 80 per cent of the market (or technical) value of the property or the agreement value of the property (as per ATS signed), whichever is lower. The banks safeguard their interests by appraising and assessing the asset at a lower rate, considering the depreciating value in future.

Points to remember

The resale home loan can become difficult to obtain for the applicant under below mentioned circumstances:

  • If any paper is missing from the chain of title deeds or  documents, especially when the property has moved from one party to another frequently.
  • If the resale property is over 20 years of age.
  • If the property was not formally registered primarily.
  • Resale properties always include additional expenses like renovation, repairing, furniture and fixture etc. Thus, getting a higher loan amount sanctioned (to get funding for these additional costs) can be arduous with an old property.

Other tips

  • It is a good practice to only invest in properties that have nearby facilities such as schools, hospitals, banks, markets etc. These are the factors that drive appreciation in both capital and rental value of the property while helping you lead a quality lifestyle. Don’t hurry in deciding the location. Give it time and explore several options that suit your budget. 
  • Paperwork becomes extremely important to check whether the seller is the legal owner of the property and whether the property is in the government records. Also, check the draft of Builder Buyer Agreement (BBA) thoroughly when looking at buying a flat from the resale market, verify title of the resale property and check the original payment receipts against the installments paid by the owner. It is also important to take a No Objection Certificate (NOC) before buying resale property.
  • Ensure no previous dues remain in terms of water, property or electricity and also understand the reason behind sale of the property so that you can make a wise decision.
  • Loan on home is another parameter that you must examine with extreme caution and care. The lender determines the condition of the building and then decides the loan amount. Usually, banks don’t lend more than what is mentioned in the sale deed. 
  • If the property is older than 10 years, the structure and plan of the building, cracks, moisture and walls, must be examined well to avoid wasting money and to not face issues at a later stage. Properties that are even older, need stringent examination.

Not Able To Pay EMIs? Here Are Your Options

All our life’s decisions are based on assumptions of normal times ahead. However, we can hardly know what future holds for us. If things go haywire, we might find ourselves in a fix. The problem would seem more gargantuan if the problem is monetary in nature. In case of a personal tragedy, we can grieve in the privacy of our personal space. However, in a scenario where others are involved and the nature of their involvement is financial, this will invariably go public. It is in this context we should look at your choices in case owing to some personal issues you are not able to pay you home loan EMIs (equated monthly installments).

Here is what not to do if you are on the verge of a money trouble and may not be able to pay your EMI in the times to come:

Don’t avoid their calls

Those regular calls, messages and emails would look pesky and remind you of the time when the bank thought you were its esteemed customers. Let these thoughts not carry you away. The truth is that loans are a liability, and you are legally bound to pay it off — be mindful of the fact that you can also be punished with a jail term in case of willful defaults.  Respond to the bank’s calls and messages in place of avoiding them.  Remember at all times that communication is the only key to solving the problem.

Also read: What Is The Ideal EMI To Rent Ratio?

Don’t hide facts from them

It may also not be a good idea to share only half of the truth. Suppose it is owing to loss of your job that you are not going to be able to pay your EMIs and you do not see finding a job anytime soon because the market is bad, do tell the bank that such is the case. Assuring the bank that you will start paying regular EMI after, say, three months, might not be a good idea. The more forthcoming you are with the bank, the higher the chances of averting bad blood.

Keep them in the loop from the start

Also, do not wait until the last minute for a divine intervention to solve your problems. You may have some savings that can act as a cushion during hard times but they would last only some months. This is why it is advisable to keep the bank in the loop right from the start of an issue. This will act as a proof that you do have a genuine problem and are not trying to default willfully.  Support all your claims with documents to further testify the truth.

Also read: How Does Paying An Extra EMI In A Year Help You?

What are your choices?

As soon as a monetary hardship strikes, your first thoughts would be that the bank would take possession of your property, auction it in the market and recover its dues. However, that happens only in the worst-case scenario, and only as the last resort.  If you tread carefully, such a situation might never arise.

  • You can talk to the bank and ask it to give you an EMI holiday. After this period, you could start paying an increased amount as your EMIs to pay off the obligation. Banks would readily agree to provide you this facility if you have a genuine problem and your payment record has been impeccable.  
  • You could also get your home loan restructured. This could mean smaller outgo of the EMI and stretching of the loan tenure. This is an effective way to deal with a pressing financial problem looking over your present.
  • If the crisis is too deep and you do not see any improvement in your financial status in future, you could also go for a one-time settlement. In this process, a bank takes from a borrower a lump-sum amount and settles the case. But, for this to happen, you will have to negotiate with the bank and convinced them. Second, if you succeed in convincing the bank and do settle the loan, it would get reflected in your credit report. This means you might find it hard to take another loan in future.

New Launches Back At 2015 Levels, Sales Sustain Momentum In Q2: PropTiger Report

As economic stability provides homebuyers with more confidence in their financial state, residential demand has picked up across the top eight cities, with both housing sales and new supply registering positive growth trend in the quarter ending April-June 2022 (Q2 CY2022).

According to Real Insight Residential – April-June 2022 report, a quarterly analysis of India’s top eight residential markets by REA-backed PropTiger.com, the recent spike in property prices has had little impact on homebuyer sentiment, as outlook towards overall economic scenario and income stability improve in the post-Coronavirus pandemic phase.

The markets covered in the report include Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region, and Pune.

 “Even though the RBI increased the repo rate twice during the quarter to bring it to 4.90%, home loans remained largely affordable for the period analysed. The biggest booster to housing demand has been the increased importance of owning a property which has been further backed by the consumer confidence in the overall economic scenario and impending income stability,” said Vikas Wadhawan, Group CFO, Housing.com, PropTiger.com and Makaan.com.

 

Ahmedabad, Hyderabad shows highest sales growth

According to the report, housing sales during the quarter ending June 30th, registered a sequential 5% uptick when compared to the previous quarter (Q1 CY2022). According to the report 74,330 units were sold across the top eight in Q2 2022 as compared to 70,620 units sold in Q1 2022. The sharpest sequential increase in sales was witnessed in end-user driven markets of Ahmedabad at 30% and Hyderabad, at 21%, respectively.

Sales – Quarterly

City

2022

2021

QoQ

YoY

Q2 2022

Q1 2022

Q2 2021

Ahmedabad

7,240

 5,550

1,280

30%

465%

Bangalore

8,350

 7,670

1,590

9%

425%

Chennai

3,220

 3,300

710

-2%

354%

Delhi NCR

4,520

 5,010

2,830

-10%

60%

Hyderabad

7,910

 6,560

2,430

21%

226%

Kolkata

3,220

 2,860

1,250

13%

157%

Mumbai

26,150

 23,360

3,380

12%

673%

Pune

13,720

 16,310

2,500

-16%

450%

India

74,330

 70,620

15,970

5%

365%

Source: Real Insight Residential – April-June 2022, PropTiger Research

 

New launches double in Kolkata

Growth in new supply   superseded sales numbers, registering a quarter-on-quarter growth of 28% with. 1,02,130 units launched in the second quarter as against 79,530 in the preceding quarter across India’s eight prime residential markets. New supply doubled in Kolkata on a quarterly basis, as per the report.

New Supply – Quarterly

City

2022

2021

QoQ

YoY

Q2 2022

Q1 2022

Q2 2021

Ahmedabad

9,500

5,060

1,540

88%

516%

Bangalore

12,730

7,070

3,430

80%

272%

Chennai

1,830

1,630

490

12%

274%

Delhi NCR

2,970

4,270

820

-31%

262%

Hyderabad

16,480

14,570

8,810

13%

87%

Kolkata

2,010

990

1,010

103%

98%

Mumbai

43,220

30,360

2,930

42%

1377%

Pune

13,390

15,580

2,810

-14%

376%

India

1,02,130

79,530

21,840

28%

368%

*Units converted to nearest thousands

Source: Real Insight Residential – April-June 2022, PropTiger Research

 

Property values spike across cities

At the same time, average values of new and available properties in the top cities registered an upward price movement ranging between 5% to 9% in this period. Rise in input costs, inflationary pressures and premium attached with ready-to-move-in inventory.  The price rally for the analysis period was sharpest for Pune and Chennai, at 9% (YoY) each, respectively.

Price in Rs/sq ft as of June 2022

City

Price Rs/sq ft as of March 22

YoY % growth

Ahmedabad

3,500-3,700

8%

Bangalore

5,700-5,900

7%

Chennai

5,700-5,900

9%

Delhi NCR

4,600-4,800

6%

Hyderabad

6,100-6,300

7%

Kolkata

4,400-4,600

5%

Mumbai

9,900-10,100

6%

Pune

5,400-5,600

9%

India

6,600 – 6,800

7%

*Weighted average prices as per new supply and inventory

Source: Real Insight Residential – April-June 2022, PropTiger Research

 

Inventory overhang at 34 months

The report highlights the current unsold stock in the country is at 7,63,650 units during this period, which will take approximately 34 months (2.8 years) to at the current sales velocity of the top eight cities.

Unsold Inventory as of June’22

City

Unsold stock as of June’22

Inventory Overhang (months)

Ahmedabad

64,860

33

Bangalore

70,530

26

Chennai

32,670

27

Delhi NCR

99,850

65

Hyderabad

82,220

37

Kolkata

22,640

24

Mumbai

2,72,890

38

Pune

1,17,990

25

India

7,63,650

34

*Units converted to nearest thousands

Source: Real Insight Residential – April-June 2022, PropTiger Research

“We see developers returning to the market in full swing in the second quarter of the year, thus, catapulting new supply back to the 2015 levels. Looking at the overall encouraging trends, we anticipate the sustained demand momentum to increase from strength to strength, especially amid the upcoming festive season which will push the growth trajectory further in the ensuing quarter,” said Ankita Sood, head of research, Housing.com, PropTiger.com and Makaan.com

Note: The YoY growth in Q2 2022 is multi-fold due the low base as Q2 2021 was a bottomed quarter owing to the COVID-19 second wave. Hence, in this case it is better to compare sequentially to get the true picture of how the residential markets have performed in the 2nd quarter of 2022.

– MakaanIQ

 

***

Housing sales, launches improve in 2021 driven by policy initiatives and improved buyer sentiment: PropTiger.com report

Real estate activity in India’s leading housing markets intensified towards the second half of 2021, after a grim 18 months.

February 18, 2022: Real estate activity in India’s leading housing markets intensified towards the second half of 2021, after a grim 18 months in which Asia’s third-largest economy was consistently battered by multiple waves of the coronavirus pandemic, shows the latest report by PropTiger.com, the country’s leading online real estate brokerage company.

According to the report titled Real Insight Residential – Annual Round-up 2021, home sales in India’s eight prime housing markets increased 13% in 2021, when compared to the overall sales in 2020. The figures include the sales numbers for all the four quarters in both calendar years.

A much sharper growth was seen in terms of new supply in 2021 as against 2020—a total of 2.14 lakh units were launched in 2021 compared to 1.22 lakh units in the preceding year, showcasing an upward swing of 75%.

This improvement in key growth metrics for the sector, the second-largest employment generator in India after agriculture, could largely be attributed to support measures launched by the government in the aftermath of the coronavirus pandemic, improved consumer sentiment, stable prices and historically high housing affordability.

Mumbai, Pune steer sales upswing

Builders sold 2,05,936 housing units for the full year 2021 as against 1,82,639 units in 2020. This growth in sales was largely driven by India’s financial capital Mumbai, where a total of 58,556 homes were sold in 2021. Closely following the Maximum City was its neighbour Pune, where a 9% jump resulted in sale of 42,425 apartments last year, the report by the Gurgaon-headquartered real estate firm shows. 

Flexible payment plans continue to keep homebuyers inclined towards under-construction homes, which made up for 80% of the home sales during the year, the report adds.

Sales

2021

2020

QoQ

YoY

City

Qtr4

Qtr3

Qtr4

Ahmedabad

5,423

5,483

3,125

-1%

74%

Bengaluru

9,414

6,547

7,660

44%

23%

Chennai

3,213

4,665

3,180

-31%

1%

Delhi NCR

4,433

4,458

6,065

-1%

-27%

Hyderabad

4,277

7,812

6,487

-45%

-34%

Kolkata

2,610

2,651

2,518

-2%

4%

Mumbai

22,438

14,163

18,331

58%

22%

Pune

16,077

10,128

11,548

59%

39%

Total

67,885

55,907

58,914

21%

15%

Source: Real Insight Residential – Annual Round-up 2021, PropTiger Research

 

Annual Sales

City

2021

2020

YoY

Ahmedabad

16,875

12,156

39%

Bangalore

24,983

23,458

7%

Chennai

13,055

10,452

25%

Delhi NCR

17,907

17,789

1%

Hyderabad

22,239

16,400

36%

Kolkata

9,896

9,061

9%

Mumbai

58,556

54,237

8%

Pune

42,425

39,086

9%

India

2,05,936

1,82,639

13%

Source: Real Insight Residential – Annual Round-up 2021, PropTiger Research

Buyer sentiment driving new launch wave

Amid a visible change of approach towards housing ownership among consumers in the aftermath of the pandemic, real estate developers in India stepped up efforts to offer better housing choices in 2021. As a result of this, barring Chennai where a marginal decline was seen, new supply showed a jump in all cities covered in the analysis during the year.

“Beyond the numbers which speak for themselves, what is remarkable is the resilience of the real estate market in India. Despite multiple waves of the pandemic, which resulted in multiple lockdowns, the residential real estate market has not only bounced back but is also on the cusp of a cyclical upturn. With policy support from the government and the low interest rate regime maintained by the RBI, I am very confident about the sector, entering into 2022,” said Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & PropTiger.com.

“Developers have been quick to respond to the positive changes in buyer sentiment, as evidenced by the offers available in the market, especially during the festive season of 2021, which resulted in improved metrics for both, demand and supply.  Basis the data available with us, it seems very likely that we will see an increase in prices in 2022, even as the inventory overhang continues to decline in 2022. The biggest trend we foresee is that the real estate market will continue to consolidate its growth in 2022 as well,” said Rajan Sood, Business Head, PropTiger.com.

 

New Launches

2021

2020

QoQ

YoY

City

Qtr4

Qtr3

Qtr4

Ahmedabad

17,311

13,440

3,003

29%

476%

Bengaluru

8,524

3,072

6,104

177%

40%

Chennai

3,797

2,332

4,887

63%

-22%

Delhi NCR

6,021

1,748

5,120

244%

18%

Hyderabad

19,809

12,342

12,723

61%

56%

Kolkata

1,944

442

1,658

340%

17%

Mumbai

9,868

21,820

10,070

-55%

-2%

Pune

7,035

10,015

10,764

-30%

-35%

Total

74,309

65,211

54,329

14%

37%

Source: Real Insight Residential – Annual Round-up 2021, PropTiger Research

Increase in raw material price pushed property prices up in 2021

Consistent increase in raw materials prices is pushing up property prices, with all eight prime residential markets covered in the report showing annual increase in per square foot price of new properties. Ahmedabad and Hyderabad housing markets were leading this pack, with an annual price hike of 7% each in 2021.

City-Wise Price card

City

Weighted average price in Rs per square foot as on December 2021

YoY % growth

Ahmedabad

3,400-3,600

7%

Bangalore

5,500-5,700

6%

Chennai

5,400-5,600

5%

Delhi NCR

4,400-4,600

5%

Hyderabad

5,900-6,100

7%

Kolkata

4,300-4,500

5%

Mumbai

9,700-9,900

4%

Pune

5,100-5,300

3%

India

6,300 – 6,500

6%

Source: Real Insight Residential – Annual Round-up 2021, PropTiger Research

Inventory overhang declines to 3.5 years

The improvement in sales in 2021 has been instrumental in lowering the inventory burden for India’s real estate developers. Consequently, inventory overhang — the estimated time builders would take to sell off the existing unsold stock, based on the current sales velocity— has now declined to 42 months. As on December 31, 2021, builders had an unsold stock consisting of 7,26,943 units in India’s eight housing markets.  While the inventory overhang is the highest for the Delhi-NCR market at 68 months, it is the lowest for Kolkata, at 31 months. 

 

 

India’s inventory burden

City

Unsold stock on December 30, 2021

Inventory overhang in months

Ahmedabad

63,096

45

Bangalore

66,754

32

Chennai

35,729

33

Delhi NCR

1,02,147

68

Hyderabad

65,635

35

Kolkata

25,716

31

Mumbai

2,48,815

51

Pune

1,19,051

34

India

7,26,943

42

Source: Real Insight Residential – Annual Round-up 2021, PropTiger Research

NOTE: Housing markets covered in the report includes Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad), MMR (Mumbai, Navi Mumbai & Thane) and Pune.

 

 

***

Sales, Launches Increase In Q3 Amid Invigorated Buyer Interest: PropTiger Report

October 18, 2021: Home sales and new supply in India’s leading property markets have shown an improvement in the period between July and September 2021, at a time when economic growth also showed signs of stabilisation, after the second wave of the Coronavirus pandemic.

According to Real Insight (Residential) – July-September (Q3) 2021a quarterly analysis of the country’s eight prime residential markets by online property portal PropTiger.com, builders sold 55,907 new housing units in the three-month period, much higher than what was seen in the April-June period this year as well as the July-September period in 2020.

Sales show quarterly as well as annual jump

Sales

2021

2020

QoQ

YoY

City

Q3

Q2

Q3

Ahmedabad

5,483

1,282

3,339

328%

64%

Bengaluru

6,547

1,591

4,825

312%

36%

Chennai

4,665

709

2,317

558%

101%

Delhi NCR

4,458

2,828

4,427

58%

1%

Hyderabad

7,812

2,429

3,260

222%

140%

Kolkata

2,651

1,253

2,479

112%

7%

Mumbai

14,163

3,381

7,378

319%

92%

Pune

10,128

2,495

7,107

306%

43%

Total

55,907

15,968

35,132

250%

59%

Source: Real Insight (Residential) – July-September (Q3) 2021

The same is true of new supply numbers, shows the report that covers the housing markets of Ahmedabad, Bangalore, Chennai, NCR, MMR, Kolkata, Hyderabad and Pune, in its analysis. During the quarter-ended September 30, 2021, builders launched a total of 65,211 fresh units, a tremendous jump from the numbers seen in Q3 2020 as well as Q2 2021.

This drive in demand and supply numbers was majorly led by the mid-segment, where properties are priced up to Rs 75 lakhs.

The report by the REA India-owned PropTiger.com also predicts that numbers might see further appreciation in the ongoing festive season, primarily because of improved property affordability and renewed buyer interest in property ownership.

“It is now a well-established fact that the notion of property ownership has gained significant currency in the aftermath of COVID and its impact on the way people live and work. Even as this has helped build positive consumer sentiment vis-à-vis residential real estate, support measures by the government and the banking sector, have set the ball rolling for a positive change in momentum for the sector. In combination, these two factors have helped drive both, demand and supply, metrics upward during the July-September quarter of 2021,” says Dhruv Agarawala, group CEO, Housing.com, PropTiger.com and Makaan.com.

“The stage is now set for the festive season to give that much-desired fillip for the industry that it has been eagerly awaiting and working so hard for,” Agarwala adds. 

Inventory overhang down to 3.6 years

Another indicator that demand for property during the quarter improved in Q3 is the fact that inventory overhang – the estimated period builders in a particular market are likely to take, to sell off their unsold stock at the existing sales velocity – is now at 44 month as against 48 months in Q2. That said, as on September 30, builders were sitting at an unsold housing stock consisting of over 7.20 lakh housing units, the report shows.

Unsold stock: City-wise break-up

City 

Unsold inventory as on September 30, 2021

Inventory overhang in months

Ahmedabad

51,208

42

Bengaluru

67,644

35

Chennai

35,145

32

Delhi NCR

1,00,559

62

Hyderabad

50,103

25

Kolkata

26,382

32

Mumbai

261,385

58

Pune

1,28,093

41

Pan India

7,20,519

44

Source: Real Insight (Residential) – July-September (Q3) 2021

Price growth remains largely flat; Ahmedabad bucks the trend

Price growth in the cities covered in the analysis has remained largely flat. However, no depreciation was seen in any market either, when compared to rates prevalent in the same quarter last year. The muted growth in annual values of property can largely be attributed to the increase in building materials. Ahmedabad was an outlier, where average values of new properties increased 8% on an annual basis. This was primarily because of the low base rate in this city.

Price growth: City-wise break-up

City

Average price range as on September 30, 2021 (in Rs per sq ft)*

Annual growth in %

Ahmedabad

3,300 – 3,500

8

Bangalore

5,400 – 5,600 

4

Chennai

5,300 – 5,500

3

Hyderabad

5,800 – 6,000

6

Kolkata

4,100 – 4,300

2

MMR

9,600 – 9,800

3

NCR

4,300 – 4,500

5

Pune

5,000 -5,200

4

National average

6,200 – 6,400

5

Source: Real Insight (Residential) – July-September (Q3) 2021

*All prices are weighted average prices as per new supply and inventory.

 

 

***

Unsold Stock Decreases But Inventory Overhang Increases in Q2 CY21: PropTiger Report

July 6, 2021: At a time when housing affordability is at a record high level, the second wave of the Coronavirus pandemic has thrown a spanner in the works, to adversely impact demand for property in India, data indicate.

According to Real Insight (Residential) – April-June (Q2) 2021, a report by online property advisory portal PropTiger.com, while the unsold housing in stock in India’s eight prime residential markets continues to be more or less at the same level as in 2020, the estimated time to sell off these units has increased significantly.

The eight residential markets covered in the quarterly analysis have a total of 7,11,215 unsold housing units, as on June 30, 2021. At the end of June 30, 2020, this number stood at 7,38,335 units. Now even though this is a four per cent annual decline in numbers, the inventory overhang has significantly increased when compared to 2020, a year when the first wave of the virus left India’s economy severely affected and Asia’s third-largest economy was much less prepared to absorb the shock.

At the end of June 2020, the average estimated time that real estate developers in India would have taken to sell the over 7.38 lakh units was 35 months. In 2021, builders are expected to offload the over 7.11 lakh units in 48 months.

Unsold stock: City-wise break-up

City

Unsold stock on June 30, 2021

Inventory overhang (in months)

Ahmedabad

43,251

42

Bangalore

71,119

40

Chennai

37,478

42

Hyderabad

45,573

27

Kolkata

28,591

36

MMR

2,53,728

64

NCR

1,03,269

64

Pune

1,28,206

44

National average

7,11,215

48

Source: Real Insight: Q2 2021

“While the impact of the second wave of the virus was universal, some markets were impacted more, as they were the hardest hit by the pandemic. This has been reflected in the high levels of unsold inventory and higher inventory overhang in markets like the NCR and MMR. This is especially true of the NCR market, where the inventory overhang was as high as the MMR, even though the unsold stock in that market was less than half of what is there in the MMR,” said Mani Rangarajan, group chief operating officer, Housing.com, Makaan.com and PropTiger.com.

Another indicator of the demand slowdown is quarterly sales, which have undergone depreciation across the eight cities in the April-June 2021 period, when most states used fragmented lockdowns as a remedy against the virus’ spread.

 

Real Insight (Residential) – April-June (Q2) 2021 Sales

 

As many as 15,968 units were sold across these eight markets during the June quarter, showing a 16 per cent YoY decline and a 76 per cent quarterly fall.

The cautious approach builders showed during this period, also effectuated a fall in new launch numbers. A total of 21,839 new units were launched in Q2CY21, showing a decline of 59 per cent when compared to the January-March period of this year. However, when compared to Q2Cy20, new launches showed an increase of 74 per cent.

 

Real Insight (Residential) – April-June (Q2) 2021 New Launches

 

“Due to the challenging situation during the April-June quarter in 2021, when infections and casualties caused by the Coronavirus hit a peak before subsiding towards the end of May, both, demand and supply, were hit during the first two months, when most states put in place various restrictions and lockdowns to curb the spread of the virus. However, some ground on both the numbers was covered during the month of June, when states started to open up. The same is reflected in Q2 demand and supply numbers. We expect improvement on both these indicators of residential real estate health in the upcoming quarters, since India’s vaccination programme is likely to gather pace. It is also important to mention that despite the lockdowns and subdued sentiment, the government gave the sector a much-needed boost with the passing of the Model Tenancy Act, which is expected to give a fillip to rental housing supply in the country. The RBI is also doing its bit by continuing to maintain its accommodative stance, keeping the repo rate and reverse repo rate at a status quo of 4% and 3.35%, respectively, which in turn would allow the low mortgage interest rate regime for home buyers, to continue. All these measures, combined with latent demand, will certainly help our sector to bounce back faster than what was anticipated earlier,” said Dhruv Agarwala, group CEO, Housing.com, Makaan.com and PropTiger.com.

Prices seen rising in some cities over supply constraints

Average values of properties have also increased in some cities like Ahmedabad and Hyderabad, owing to supply constraints during the lockdowns.

Price growth: City-wise break-up

City

Average price as on June 30, 2021 (in Rs per sq ft)

Annual growth in %

Ahmedabad

3,251

5

Bangalore

5,495

4

Chennai

5,308

3

Hyderabad

5,790

5

Kolkata

4,251

2

MMR

9,475

No change

NCR

4,337

2

Pune

5,083

3

National average

6,234

3

Source: Real Insight: Q2-2021

For similar reasons, average rates continued to move up, even if marginally, in all cities barring the MMR, where annual price growth remained flat. 

 

 

***

New Supply Increases 49% In Jan-March Quarter Amid Improvement On Liquidity Front: PropTiger Report

April 9, 2021: Amid some ease in liquidity conditions because of the increased government support, new supply in India’s eight prime residential markets has shown a marked improvement in the January-March (Q1) period of 2021 (CY21), shows a report by property brokerage firm PropTiger.com.

According to the report, titled Real Insight – Q1CY21, builders in India’s eight prime residential markets launched 53,037 units during the three-month period, an annual appreciation of 49 per cent when compared to the same quarter last year, interestingly the last quarter before the coronavirus hit India, consequently battering its economy.

 “As the economy gradually marches towards recovery, as reflected in global rating agencies and think-tanks revising India’s growth forecasts for 2021 and 2022, the residential real estate market in the country is also seeing a positive momentum on the back of various measures taken by the centre and state governments, the RBI and the entire banking system (as demonstrated in home loan rate reductions). This positive change is visible in the first quarter through an increase in supply numbers, an indication that developers are more comfortable now with regard to liquidity support and buyer sentiment,” said Dhruv Agarwala, group CEO, Housing.comMakaan.com and PropTiger.com.

On the quarter-on-quarter (QoQ) basis, new launches showed a marginal decline of two per cent.

Homes sales show 5% annual decline

Real estate developers in India’s eight prime residential markets sold a total of 66,176 apartments in the primary segment, a five per cent fall when compared to the sales numbers in the January-March period of 2020.

However, sales numbers for Q1 showed an increase of 12 per cent when compared to the preceding quarter, amid states offering incentives to homebuyers in the form of reduced stamp duty and circle rates. The report also attributed the quarterly increase in home sales to affordable lending rates by banks.

“The metrics on the demand side have also been largely stable, with the job market opening up again in various industries, giving people the confidence to take advantage of a property market that is at its most affordable for home buyers in years,” said Agarwala.

“The Maharashtra government’s decision to temporarily lower stamp duty on property registrations helped mitigate the steep decline in sales for the Mumbai and Pune markets that contribute the most to the national stock of unsold homes. The state government should have continued with the benefit of reduced rates to keep the sales momentum going. We also expect states like UP and Haryana to announce stamp duty and circle rate reductions in order to provide support to crucial housing markets of Noida and Gurugram in the national capital region,” said Mani Rangarajan, Group COO, Housing.comMakaan.com and Proptiger.com.

Price growth remains stable

With Ahmedabad and Hyderabad being the only exceptions, no other city included in the analysis showed any marked upwards movement in average annual values of property in the primary segment. The pressure on price growth is expect to continue in the upcoming quarters amid a dramatic increase in coronavirus infections in India that has forced many states to impose partial lockdowns and night curfews.

Annual price growth: City-wise break-up

City

Average price as on March 31, 2021 (in Rs per square foot)

Annual growth in %

Ahmedabad

3,234

5

Bangalore

5,450

3

Chennai

5,275

3

Hyderabad

5,713

5

Kolkata

4,208

1

MMR

9,474

No change

NCR

4,327

1%

Pune

5,76

3

National average

6,234

3

 Source: Real Insight: Q1 2021

Unsold stock declines 5%, but inventory overhang increases

As on March 31, 2021, the eight housing markets included in the analysis has 705,344 unsold units in the primary market, the report showed. This demonstrated a five per cent annual decline in the unsold stock. The MMR and Pune contributed the most to this unsold stock, with a combined share of 54 per cent.

An indication that demands needs to improve at a much faster level and the existing support measures might not be sufficient to deal with the unsold stock, the inventory overhang—the estimated time builder would take to sell off the existing stock keeping in view the current sales velocity— has remained unchanged at 47 months as it was in the previous quarter.  

Unsold stock: City-wise break-up

City

Unsold stock on March 31, 2021

Inventory overhang

Ahmedabad

42,991

42

Bangalore

69,285

37

Chennai

37,697

40

Hyderabad

39,191

25

Kolkata

28,827

36

MMR

254,183

62

NCR

105,279

68

Pune

127,891

41

National average

705,344

47

 Source: Real Insight: Q1 2021

 

***

Home Sales, New Launches Improve In Q4 2020: PropTiger Report

January 11, 2021: Housing sales and new launches have shown improvement in Q4 2020, primarily because of cost-related benefits offered to homebuyers during the three-month period, also known as the festive season, shows Real Insight: Residential Annual Roundup 2020, a report by property brokerage firm PropTiger.com.

 

Yearly round-up of India’s 8 residential markets in 2020

City

Launches YTD

Sales YTD

Unsold Inventory as on Dec 31, 2020

Inventory overhang as on Dec 31, 2020 (in months) 

Ahmedabad

7,687

12,156

38,614

38

Bengaluru

17,793

23,458

71,198

36

NCR

12,094

17,789

1,06,689

72

Chennai

12,382

10,452

36,609

42

Hyderabad

22,940

16,400

39,308

29

Kolkata

3,288

9,061

30,210

40

Mumbai

20,899

54,237

2,63,987

58

Pune

25,343

39,086

1,31,868

40

Total

1,22,426

1,82,639

7,18,483

47

 Source: Real Insight: Residential Annual Roundup 2020

 

According to the report that analysed the performance of India’s eight prime residential markets during October-December 2020, new supply witnessed a 173% Q0Q (quarter-on-quarter) growth while sales showed a 68% increase over the July-September period of 2020.

“The quarterly spike in supply numbers could largely be attributed to the increased popularity of residential realty in the aftermath of the Coronavirus pandemic that has laid bare the insecurities of other asset classes. Various government-offered support measures to provide a cushion to the developer community, have also provided them with some scope to launch new schemes,” the report says.

“All factors considered, the sector has shown remarkable tenacity in 2020, against unprecedented odds that have caused the economy to contract and impacted consumer spending. The fact that housing sales in India’s key markets have started to bounce back, in spite of the general gloom caused by the pandemic, shows the immense potential of the real estate sector, which employs the highest number of unskilled workers in the country. The sector’s performance seems particularly impressive, given that the pandemic has impacted the income-generating capacity of a large number of people. End-users and investors continue to feel confident about investing in real estate. Prices continued to remain stable and the overall outlook looks positive,” said Dhruv Agarwala, group CEO, Housing.com, Makaan.com and PropTiger.com.

 

Break-up of sales and launches in eight cities in Q42020

City

Launches

Sales

Ahmedabad

3,003

3,125

Bengaluru

6,104

7,660

NCR

5,120

6,065

Chennai

4,887

3,180

Hyderabad

12,723

6,487

Kolkata

1,658

2,518

MMR

10,070

18,331

Pune

10,764

11,548

Total

54,329

58,914

Source: Real Insight: Residential Annual Roundup 2020

 

A city-wise break of launches depicts a quarterly increase across cities, barring Ahmedabad, in Q4 2020. The highest number of units were launched in Hyderabad, Pune and Mumbai, respectively.

“While the trends point to a market recovery and positive news, given the imminent launch of a vaccine that will ease the pandemic concerns, our optimism should be cautious. Buyers continue to expect low home loan rates, extension of developer offers and prefer ready-to-move-in inventory than those under construction. We believe that the government should continue to support the sector, through moves such as lowering stamp duty, re-evaluating circle rates and increasing the tax deduction limit for interest on home loans, to ensure that the sector continues to revive. The sector is digitising at a rapid pace and more than 90% of potential home buyers have moved online, to shortlist properties to buy. We have seen a strong growth in online booking throughout 2020,” added Mani Rangarajan, Group COO, Housing.com, Makaan.com and PropTiger.com.

 

Unsold stock: City-wise break-up

However, demand being far from the pre-COVID levels is evident from the fact that inventory overhang – the average estimated time builders in the eight markets will take to exhaust the unsold stock – has increased to 47 months in Q4 2020 as against 27 months in Q4 2019.

There has, however, been a 9% annual fall in unsold stock numbers – it stood at over 7.18 lakh units as on December 31, 2020 as compared to nearly 7.92 lakh units in Q4 2019.

At 55% combined, Mumbai and Pune hold the highest share in the unsold stock. At 72 months, the inventory overhang, however, is the highest in the NCR.  Hyderabad has the lowest inventory overhang of 29 months.

  

City

Unsold stock on Dec 31, 2020 (units)

Inventory overhang (in months)

Ahmedabad

38,069

38

Bengaluru

71,133

36

Chennai

35,583

42

Hyderabad

39,234

29

Kolkata

30,060

40

MMR

2,67,398

58

NCR

1,06,560

72

Pune

1,29,199

40

National average

7,18,483

47

 Source: Real Insight: Residential Annual Roundup 2020

 

No downward correction reported in average prices

The annual data shows that there has not been any downward movement in the average prices of new units in India’s eight markets. Markets like Ahmedabad and Hyderabad have, in fact, seen modest price growth in the one-year period. In other cities, annual price growth remained range-bound.

To read the full report, click here.

Price growth: City-wise break-up

City

Average price as on December 31, 2020 (in Rs per sq ft)

Annual growth in %

Ahmedabad

3,213

7

Bengaluru

5,342

2

Chennai

5,228

2

Hyderabad

5,602

5

Kolkata

4,202

2

MMR

9,448

No change

NCR

4,268

No change

Pune

5,077

4

National average

6,042

No change

Source: Real Insight: Residential Annual Roundup 2020

 

 

***

October 14, 2020:

Sales, Launches Increase In Q3 2020, Over Previous Quarter: PropTiger Report

After nose-diving during the April-June period, home sales and new supply numbers have shown an increase in the July-September period of the calendar year 2020, shows a report by property brokerage PropTiger.com.

According to Real Insight Q3 2020, a quarterly analysis of India’s eight prime residential markets that include Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, the Mumbai Metropolitan Region (MMR), the National Capital Region (NCR) and Pune, a total of 35,132 homes were sold during the three-month period between July and September, as against 19,038 units in the preceding quarter. Similarly, new supply also increased to 19,865 units in the September quarter as against 12,564 homes in the previous quarter.

“Green shoots are visible, pointing to the start of a recovery in residential real-estate, evidenced by the improvement in new launches and sales on a quarter-over-quarter basis. These are unprecedented times, which have made buyers aware of the important role that homes play in ensuring their well-being, as well as their physical and emotional security. This, together with the fact that real estate is a hard asset and the fact that home loan rates are near a 15-year low, have encouraged buyers to return to the market. In recent times, the government and the Reserve Bank have also taken steps, to enhance liquidity in the sector and encourage banks to extend home loans at cheaper rates. With several macro-economic indicators showing a positive trend in September, we may well be on the road to a more sustained recovery and the upcoming festival season will be critical, in determining the growth trajectory in the sector over the next 12 months,” said Dhruv Agarwala, group CEO, Housing.com,  PropTiger.com and Makaan.com.

While indicating that buyer sentiment might have seen some improvement during the quarter, as the government started the phased unlocking of the country, to kick start the Coronavirus-hit economy, the numbers are way below those registered in the same period last year.

An annual comparison of supply and demand numbers show that housing sales fell 57% year-on-year while new launches depreciated 66% during the same period.

 

Key numbers for July-September period 2020

Sales

Up 85% qoq

Down 57% yoy

Launches

Up 58% qoq

Down 66% yoy

 

Inventory declines 12% year on year

As against 8,23,773 unsold homes on September 30, 2019, builders in the eight cities now have a lesser unsold stock burden. With a decline of 12%, this stock as on September 30, 2020, stood at 7,23,068 units. However, the weak demand means builders would now take much longer to shed this burden as the Coronavirus affects business. When compared to 28 months last year, the inventory overhang has now increased to 43 months.

Inventory overhang is the estimated time period within which developers will be able to sell off the current stock. This projection is made, keeping in view the current sales velocity.

 

Key markets and their inventory burden

City

Inventory as on Sep 30, 2020 (units)

Inventory overhang (months)

Ahmedabad

38,736

31

Bangalore

72,754

36

Chennai

34,902

39

Hyderabad

33,072

25

Kolkata

31,070

39

MMR

2,72,248

52

NCR

1,07,634

58

Pune

1,32,652

37

National

7,23,068

43

Source: Real Insight Q3 2020

 

Price growth remains largely unchanged

Even though housing markets covered in the analysis showed varying trends, there was only a flat 1% reduction seen in the overall average house prices, when compared on a quarter-on-quarter basis. On an annual basis, housing prices have shown an increase of the same percentage point.

“Consumers continue to perceive real-estate as the most stable asset and a number of them are looking to upgrade their homes, as working from home is likely to continue. The government has also been supportive, by taking steps to make buying more attractive. While states such as Maharashtra have reduced stamp duty rates on property transactions, financial institutions have also brought home loan interest rates to the sub-7% level since the RBI brought the repo rate to 4%. On its part, the developer community is not only ensuring buyers are able to book their future homes using virtual tools but also offering festive discounts and easy payment plans. We are optimistic that sales during the festive season will be encouraging and will help drive further recovery in the sector,” says Mani Rangarajan, group COO, Housing.com, Makaan.com and PropTiger.com.

 

Price card

Weighted average property price in top 8 residential markets 

City

Average price as on September 2020 (in Rs per sq ft)

Percentage change over September 2019

Ahmedabad

3,151

6%

Bangalore

5,310

2%

Chennai

5,240

2%

NCR

4,232

-1%

Hyderabad

5,593

6%

Kolkata

4,158

1%

MMR

9,465

1%

Pune

4,970

2%

Source: Real Insight Q3 2020

To read the full report, click here.

 

 

***

Sales, New Supply Drop In Q2 2020 Amid COVID-19 Concerns: PropTiger Report

July 29, 2020: The Coronavirus pandemic that has forced some major economies of the world into recession, has also severely impacted the housing market in India during the April-June quarter of 2020, numbers available with PropTiger.com show.

According to Real Insight: Q2 2020, a quarterly analysis of eight prime residential markets in India, only 19,038 units were sold across India’s eight key property markets during the three-month period. Similarly, only 12,564 units were launched during this period. In percentage terms, housing sales declined 79% annually while falling 73% QoQ. New supply dipped 81% annually while falling 65% QoQ.

 Click here to read the full report.

 

Launch and sales numbers

 

Launches (units)

Sales (units)

Q1 2018

79,943

84,775

Q2 2018

78,574

85,053

Q3 2018

64,569

88,935

Q4 2018

73,621

91,965

Q1 2019

71,270

92,683

Q2 2019

65,238

92,764

Q3 2019

59,216

81,886

Q4 2019

48,530

80,253

Q1 2020

35,668

69,555

Q2 2020

12,564

19,038

Source: Real Insight: Q2 2020

 

“The current pandemic is an unprecedented black swan event that is expected to contract growth in the global economy, including that of India. As anticipated, demand was adversely impacted due to the economic uncertainty, combined with growing unemployment. Our recent Housing.com-NAREDCO buyer survey indicated that buyers have pushed back their purchasing decision by up to a year. While developers are increasingly offering schemes, such as flexible payment plans, selective discounts and price protection plans, to attract buyers, they are understandably cautious and are focusing on completing existing projects. In fact, the delivery of existing projects may get pushed back, depending on how quickly supply-chain, labour availability and liquidity inflows are restored. We are unlikely to see new launches increase significantly for the next few quarters, as developers wait for demand revival and augment their cash flows through sales of existing units. Notwithstanding these lacklustre results, buyers continue to affirm their faith in real estate as an asset class, with over a third of our surveyed buyers choosing it as their preferred form of investment,” says Mani Rangarajan, Group COO, Housing.com, Makaan.com and PropTiger.com.

 

Inventory overhang at 35 months

The demand slowdown has resulted in an increase in the inventory overhang, in spite of the fact that there has been a 13% reduction in unsold stock in the past one year. As on June 30, 2020, developers had an inventory consisting of 7,38,335 units across the eight markets. In Q2 2019, the unsold stock stood at 8,46,460 units. Inventory overhang has, however, increased to 35 months, as against 28 months in Q2 2019.

Inventory overhang is the time developers would take to sell off the unsold stock, at the current sales velocity. 

At nearly 56%, Mumbai and Pune markets together contributed the highest to the share of unsold stock, followed by NCR (15%) and Bengaluru (10%).

 

City

Unsold units as on June 30, 2020

Ahmedabad

3,8933

Bengaluru

75,493

Chennai

36,272

Hyderabad

32,068

Kolkata

32,832

MMR

2,76,492

NCR

1,11,121

Pune

1,35,124

Total

7,38,335

Source: Real Insight: Q2 2020

 

The NCR market has the highest inventory overhang of 53 months as of now, while Hyderabad has the lowest, at 19 months. The city also has the lowest inventory stock while Mumbai has the biggest burden.

 

The overhang situation

City

Inventory overhang (in months)

Ahmedabad

26

Bengaluru

32

Chennai

36

Hyderabad

19

Kolkata

38

MMR

40

NCR

53

Pune

30

Data as on June 30, 2020

Source: Real Insight: Q2 2020

 

Price growth muted

Barring Hyderabad and Ahmedabad, where annual price growth was 7% and 6%, respectively, all the other housing markets recorded only negligible growth, as compared to the levels seen in Q2 2019. With consistent price growth, Hyderabad is now the second most-expensive property market among the eight cities.

 

City

Weighted average price (per sq ft)

Annual growth in Q2 2020

Ahmedabad

Rs 3,104

6%

Bengaluru

Rs 5,299

3%

Chennai

Rs 5,138

Flat

Hyderabad

Rs 5,505

7%

Kolkata

Rs 4,178

3%

MMR

Rs 9,490

1%

NCR

Rs 4,293

1%

Pune

Rs 4,951

2%

Data as on June 30, 2020

Source: Real Insight: Q2 2020

 

Note: Cities included in the analysis are Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, NCR, MMR and Pune.

 

 

***

Housing Sales Fall 25% In Q2: PropTiger Report

October 18, 2019: Housing sales in India’s nine residential markets declined by 25 per cent in the July-September quarter of the current financial year, a latest report by PropTiger.com shows. This indicates that the various measures launched by the government and developer community to push demand, are yet to yield desired results. An ongoing liquidity crunch and a shift in work approach also led to a fall of 45 per cent in new project launches during the quarter when compared to the same quarter the previous year.

Titled Real Insights, the report covers nine Indian residential markets including Ahmedabad, Bengaluru, Chennai, Gurugram, Hyderabad, Kolkata, Mumbai, Noida and Pune. Quarterly and half yearly comparisons also show a downward trend in sales as well as launches, says the report.

Q1FY20 vs Q2FY20 comparisons showed depreciation in both, sales and launches wherein, new launches fell by 32 per cent and home sales declined by 23 per cent. When compared to H1 in FY2019, sales fell by 11 per cent in H1 FY20. During the same period, new launches declined by 39 per cent.

“New launches continues to show a downward trend in the September quarter as the government is moving towards finding a solution to the ongoing NFBC issue, a problem that has dried up the key source of finance for Indian developers. As buyers postponed their purchase decisions owing to the upcoming festive season, sales number also fell during the quarter,” says Dhruv Agarwala, Group CEO, Elara Technologies.

“While new launch numbers might continue to fall in the coming quarters amid the liquidity crunch, home sales numbers are expected to improve in the subsequent quarter, factoring in the festive spirit. Record low-interest rates and intensified measures by the government to restore the growth momentum, would be handy for buyers having property purchase plans this festive season,” Agarwala adds.

Unsold stock in the property market, however, declined by 13 per cent annually, primarily because of a decline in fresh launches. Builders in the nine markets jointly have an unsold stock of over 7.79 lakh units and may be able to sell it off only in 28 months, considering the current sales velocity, the report shows.

The report also shows that property values have undergone only slight changes in most markets, except Hyderabad where rates have seen a 15 per cent increase in the past one year. Only Gurugram (four per cent) and Chennai (one per cent) markets have seen a downward movement in pricing during this period. Other markets saw prices appreciate by 2-4 per cent annually.

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New Launches Dip 47 per cent in Q1 FY20: PropTiger.com Report

As the liquidity crunch in the real estate sector is seen deepening amid a crisis in the banking sector, new project launches in India’s nine major cities fell by 47 per cent during Q1 (April-June) FY20. According to Real Insight, a quarterly report by PropTiger.com that analyses data for nine key property markets across the country, home sales during the quarter declined by 11 per cent as compared to the same period last year, even as housing inventory fell 12 per cent. Property prices, however, remained largely flat, with only Hyderabad seeing an impressive annual appreciation of 17 per cent.

Since developers have shifted their focus towards completing their pending projects, a total of 1,20,500 units were delivered during Q1 FY20, says the report, adding that another 5,00,000 new units will be delivered by March 2020.  

To download full report, click here

GAINERS AND LOSERS

Standing Tall

Gurugram has emerged as the top performer during the quarter after registering positive growth in home sales, as well as new launches. While new launches more than doubled in the city, home sales increased by 32 per cent. The millennium city was in fact the only market where new launches increased in the quarter ending June.

Another positive news for homebuyers came in the form of a price correction in this otherwise expensive market. Rates of properties in Gurugram, declined by three percentage points in the past one year, shows the report.

Meanwhile, Hyderabad stood on a solid footing during the quarter when compared to its other southern peers. While launches declined by more than half, home sales numbers improved by 10 per cent as compared to the corresponding quarter last year. India’s pharmaceutical capital also has the best inventory profile in the country – the inventory is comparatively new (ages less than three years) and the overhang the lowest – at the current sales velocity, it would take a little over a year to sell the existing stock.

Hyderabad also topped the charts when it came to price appreciation with 17 per cent increase in property rates in the last one year.

Sales and Launches

Kolkata and Pune also showed an increase in home sales in the June quarter year-on-year, by 10 and five per cent, respectively.

With a drop of 56 per cent, Noida registered the biggest fall in sales during the quarter, followed by Ahmedabad where sales fell 36 per cent.

The biggest decline in new launches was seen in Ahmedabad with a drop of 89 per cent and the Mumbai Metropolitan Region with a fall of 62 per cent.

Inventory Profile

Noida has the worst inventory stock in the country. Not only did the housing stock increase 2 per cent in the affordable segment in the past one year, something that no other city witnessed, the overhang here is 41 months as opposed to the national average of 30 months. At the current sales velocity, it would take nearly 3.5 years more to sell off the existing housing stock in Noida.

Ahmedabad, Pune and Kolkata are the ideal places for affordable property investments since over 70 per cent of the unsold inventory is within the Rs 50 lakhs budget. The largest options for ready-to-move-in units lie in Ahmedabad and Chennai.

Note: The cities included in the analysis are Ahmedabad, Bengaluru, Chennai, Gurugram (includes Bhiwadi, Dharuhera and Sohna), Hyderabad, Kolkata, Mumbai (includes Navi Mumbai and Thane), Noida (includes Greater Noida and Yamuna Expressway) and Pune.

Property Prices Increase In Q2 As Sales, Launches Improve: PropTiger Real Insight Report

Property prices in India’s eight prime residential markets have firmed up further during the April-June period of 2022 in the backdrop of geopolitical issues, a spike in rates of construction materials and an increase in home loan interest rates.

According to Real Insight Residential – April-June 2022 report, a quarterly analysis of India’s top eight residential markets, home sales and new supply numbers have also improved during the three-month period due to sustained demand momentum.

“Even though the RBI increased the repo rate twice during the quarter to bring it to 4.90%, home loans remained largely affordable for the period analysed. The biggest booster to housing demand has been the increased importance of owning a property which has been further backed by the consumers’ confidence in the overall economic scenario and impending income stability,” said Vikas Wadhawan, group CFO, Housing.com, PropTiger.com and Makaan.com.

The markets covered in the report include Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region, and Pune.

 

Mumbai contributes most to new supply

Barring Pune and Delhi-NCR, new launches increased in every city covered in the analysis. Mumbai, however, contributed the most to the quarterly launch numbers.

New Supply – Quarterly

City

2022

2021

QoQ

YoY

Q2 2022

Q1 2022

Q2 2021

Ahmedabad

9,500

5,060

1,540

88%

516%

Bangalore

12,730

7,070

3,430

80%

272%

Chennai

1,830

1,630

490

12%

274%

Delhi NCR

2,970

4,270

820

-31%

262%

Hyderabad

16,480

14,570

8,810

13%

87%

Kolkata

2,010

990

1,010

103%

98%

Mumbai

43,220

30,360

2,930

42%

1377%

Pune

13,390

15,580

2,810

-14%

376%

India

1,02,130

79,530

21,840

28%

368%

 *Units converted to nearest thousands

Source: Real Insight Residential – April-June 2022, PropTiger Research

 

Ahmedabad, Hyderabad shows highest sales growth

Housing sales showed a sequential 5% uptick when compared to the previous quarter (Q1 CY2022). According to the report, 74,330 units were sold across the top eight in Q2 2022 as compared to 70,620 units sold in Q1 2022. The sharpest quarterly increase in sales was witnessed in end-user driven markets of Ahmedabad at 30% and Hyderabad at 21%.

Sales – Quarterly

City

2022

2021

QoQ

YoY

Q2 2022

Q1 2022

Q2 2021

Ahmedabad

7,240

 5,550

1,280

30%

465%

Bangalore

8,350

 7,670

1,590

9%

425%

Chennai

3,220

 3,300

710

-2%

354%

Delhi NCR

4,520

 5,010

2,830

-10%

60%

Hyderabad

7,910

 6,560

2,430

21%

226%

Kolkata

3,220

 2,860

1,250

13%

157%

Mumbai

26,150

 23,360

3,380

12%

673%

Pune

13,720

 16,310

2,500

-16%

450%

India

74,330

 70,620

15,970

5%

365%

Source: Real Insight Residential – April-June 2022, PropTiger Research

 

Pune, Chennai shows sharpest price growth

While all cities covered in the analysis showed an upwards movement in average rates of new property, Pune and Chennai recorded the highest annual appreciation of 9% each. Housing affordability remains the highest in Ahmedabad, where average rates of property stand in the range of Rs 3,500 to Rs 3,700 per sqft.

City-wise price break-up

City

Rate in Rs per sq ft

YoY growth in %

Ahmedabad

3,500-3,700

8%

Bangalore

5,700-5,900

7%

Chennai

5,700-5,900

9%

Delhi NCR

4,600-4,800

6%

Hyderabad

6,100-6,300

7%

Kolkata

4,400-4,600

5%

Mumbai

9,900-10,100

6%

Pune

5,400-5,600

9%

India

6,600-6,800

7%

*Weighted average prices as per new supply and inventory

Source: Real Insight Residential – April-June 2022, PropTiger Research

 

Inventory overhang at 34 months

Positive buyer sentiment has also been instrumental in bringing down the inventory overhang to 34 months from 42 months during the last quarter. For the uninitiated, inventory overhand is the estimated time period developers are likely to take to sell off the unsold inventory, based on the current sales velocity. As of June 2022, builders in India’s eight residential markets were sitting on an unsold stock consisting of 763,650 units.

 

Unsold stock
City  Number of units as of June 2022 Inventory overhang in months
Ahmedabad 64,860 33
Bangalore 70,530 26
Chennai  32,670 27
Delhi NCR  99,850 65
Hyderabad  82,220 37
Kolkata  22,640 24
Mumbai  271,890 38
Pune 117,990 25
India 763,650 34

Source: Real Insight Residential – April-June 2022, PropTiger Research

 

 

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Residential real estate growth continues in Q1 2022: Proptiger.com report

Home sales and new launch numbers have shown a year-on-year growth in the period between January and March, 2022, according to PropTiger.com’s Real Insight Residential report

March 31, 2022:

  • Residential prices firm up across top eight cities, Chennai witnesses maximum increase.
  • Delhi NCR has the highest inventory overhang while Bengaluru and Kolkata have the lowest.
  • 79% sales in Q1 reported in under-construction segment.
  • Mumbai and Pune had the biggest share in housing sales, with their combined share standing at 56% in the overall sales across the top eight cities.

Activity in India’s residential real estate segment has seen a further increase in the first three months of the year 2022, as record low home loan interest rates fuel consumer enthusiasm, along with government-sponsored subsidy programmes.

According to a report by online real estate major PropTiger.com, which is part of REA India that also owns Housing.com and Makaan.com, home sales and new launch numbers have shown a year-on-year (YoY) growth in the period between January and March, 2022.

The report by the Gurgaon-headquartered company shows that 70,623 units were sold in Q1 2022, as compared to 66,176 units sold in Q1 2021, registering 7% YoY growth. The improvement in terms of new supply was significantly higher, with a YoY growth of 50% in new launches during the same period. A total of 79,532 units were launched in Q1 2022 as compared to 53,037 units in Q1 2021.

The markets covered in the quarterly report, titled Real Insight Residential – January-March 2022, include Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region, Delhi-National Capital Region and Pune.

“India’s housing sector is again emerging as a bright spot in the country’s economy, helping it spring out of the pandemic-induced slowdown. With further normalisation of activity in the months to follow, we expect greater positive changes,” said Dhruv Agarwala, group CEO, PropTiger.com, Housing.com and Makaan.com 

 

79% sales in Q1 reported in under-construction segment

Sales

City

Q1 2022

Q1 2021

YoY change %

Ahmedabad

5,549

4,687

18%

Bangalore

7,671

7,431

3%

Chennai

3,299

4,468

-26%

Delhi NCR

5,013

6,188

-19%

Hyderabad

6,556

7,721

-15%

Kolkata

2,860

3,382

-15%

Mumbai

23,361

18,574

26%

Pune

16,314

13,725

19%

India

70,623

66,176

7%

Source: Real Insight (Residential) January—March 2022

 

In a quarter during which the demand for housing units priced in the range of Rs 45 lakhs to Rs 75 lakhs was the highest, Mumbai and Pune had the biggest share in housing sales, with their combined share standing at 56% of the overall sales.

Even though the recent joint consumer survey conducted by the group company of REA India, Housing.com and industry body NAREDCO, found that 57% of potential homebuyers would prefer to buy a ready-to-move-in (RTMI) property, 79% of the sales during the quarter ended in March was seen in the under-construction category, mainly because of the price advantage that this segment offers over the ready-to-move-in segment.

 

Half the cities show decline in launches

The MMR market did the heavy lifting in terms of new supply in the quarter ended March 31, demonstrating a 246% increase YoY. The stellar performance by this market was mainly responsible for an overall good performance of the housing market on this parameter, as four of the eight markets covered in the analysis showed a decrease in new launches. Cities where new launches showed a decline during the March quarter include Ahmedabad, Chennai, Delhi-NCR and Kolkata.

 

New supply

City

Q1 2022

Q1 2021

YoY change %

Ahmedabad

5,055

9,064

-44%

Bangalore

7,068

5,518

28%

Chennai

1,629

5,556

-71%

Delhi NCR

4,270

4,778

-11%

Hyderabad

14,572

7,604

92%

Kolkata

994

1,999

-50%

Mumbai

30,360

8,770

246%

Pune

15,584

9,748

60%

India

79,532

53,037

50%

Source: Real Insight (Residential) January—March 2022

 

Property prices climb too

As expected, housing price growth also accelerated during the quarter, with every market covered in the analysis showing an upwards movement in average rates of new properties. Most of this increase in rates can be attributed to the hike in prices of building materials.

The sharpest uptick in property prices was registered in Chennai, where average rate of properties has undergone a 9% appreciation in the past one year, the report shows. Pune and Ahmedabad followed this southern market closely in terms of price increase, with both markets witnessing an 8% rise in their average property rates.

 

City-wise price card

City

Price range in Rs per sq ft as on March 2022*

YoY % growth

Ahmedabad

3,500-3,700

8%

Bangalore

5,600-5,800

6%

Chennai

5,700-5,900

9%

Delhi NCR

4,500-4,700

4%

Hyderabad

6,000-6,200

7%

Kolkata

4,300-4,500

5%

Mumbai

9,800-10,000

4%

Pune

5,400-5,600

8%

India

6,600 – 6,700

7%

Source: Real Insight Residential – January-March 2022, PropTiger Research

*Weighted average prices as per new supply and inventory

 

Agarwala is of the opinion that house ownership may become pricier with various government-funded subsidy schemes coming to an end in March 2022. This price appreciation would be further compounded by rising home loan rates, if the RBI were to hike the benchmark lending rate, which may well be on the cards, given inflationary pressures. So far, the country’s central bank has maintained the repo rate – to which home loan interest rates in India are linked – at 4%.

 

Housing inventory increases marginally amid higher supply numbers

As activity in housing supply picked up pace, housing inventory swelled slightly, at an annual rate of 4%. Builders in India are sitting on an unsold stock consisting of 7,35,852 units as on March 31, 2022. This number stood at 7,05,344 units at the end of March 2021. With an individual share of 35% and 16%, respectively, Mumbai and Pune continue to contribute the most to this national housing inventory.

However, inventory overhang – the estimated period builders are likely to take to sell off their unsold stock – has declined to 42 months as against 47 months a year ago, primarily because of higher demand for housing. Delhi NCR has the highest inventory overhang while Bangalore and Kolkata have the lowest.

 

India’s unsold residential inventory

City

Unsold stock as on March 31, 2022

Inventory overhang in months

Ahmedabad

 62,602

42

Bangalore

 66,151

31

Chennai

 34,059

34

Delhi NCR

 1,01,404

73

Hyderabad

 73,651

42

Kolkata

 23,850

31

Mumbai

 2,55,814

48

Pune

1,18,321

32

India

7,35,852

42

Source: Real Insight (Residential) – January-March 2022, PropTiger Research

 

 

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Homes sales, new supply improve in 2021 driven by policy initiatives and improved buyer sentiment: PropTiger.com report

Home sales, new supply numbers jump on cues from economic recovery and record low home loan interest rates.

February 17, 2022: Real estate activity in India’s leading housing markets intensified towards the second half of 2021, after a grim 18 months in which Asia’s third-largest economy was consistently battered by multiple waves of the coronavirus pandemic, shows the latest report by PropTiger.com, the country’s leading online real estate brokerage company.

According to the report titled Real Insight Residential – Annual Round-up 2021, home sales in India’s eight prime housing markets increased 13% in 2021, when compared to the overall sales in 2020. The figures include the sales numbers for all the four quarters in both calendar years.

A much sharper growth was seen in terms of new supply in 2021 as against 2020—a total of 2.14 lakh units were launched in 2021 compared to 1.22 lakh units in the preceding year, showcasing an upward swing of 75%.

This improvement in key growth metrics for the sector, the second-largest employment generator in India after agriculture, could largely be attributed to support measures launched by the government in the aftermath of the coronavirus pandemic, improved consumer sentiment, stable prices and historically high housing affordability.

Mumbai, Pune steer sales upswing

Builders sold 2,05,936 housing units for the full year 2021 as against 1,82,639 units in 2020. This growth in sales was largely driven by India’s financial capital Mumbai, where a total of 58,556 homes were sold in 2021. Closely following the Maximum City was its neighbour Pune, where a 9% jump resulted in sale of 42,425 apartments last year, the report by the Gurgaon-headquartered real estate firm shows. 

Flexible payment plans continue to keep homebuyers inclined towards under-construction homes, which made up for 80% of the home sales during the year, the report adds.

Sales

2021

2020

QoQ

YoY

City

Qtr4

Qtr3

Qtr4

Ahmedabad

5,423

5,483

3,125

-1%

74%

Bengaluru

9,414

6,547

7,660

44%

23%

Chennai

3,213

4,665

3,180

-31%

1%

Delhi NCR

4,433

4,458

6,065

-1%

-27%

Hyderabad

4,277

7,812

6,487

-45%

-34%

Kolkata

2,610

2,651

2,518

-2%

4%

Mumbai

22,438

14,163

18,331

58%

22%

Pune

16,077

10,128

11,548

59%

39%

Total

67,885

55,907

58,914

21%

15%

Source: Real Insight Residential – Annual Round-up 2021, PropTiger Research

Annual Sales

City

2021

2020

YoY

Ahmedabad

16,875

12,156

39%

Bangalore

24,983

23,458

7%

Chennai

13,055

10,452

25%

Delhi NCR

17,907

17,789

1%

Hyderabad

22,239

16,400

36%

Kolkata

9,896

9,061

9%

Mumbai

58,556

54,237

8%

Pune

42,425

39,086

9%

India

2,05,936

1,82,639

13%

Source: Real Insight Residential – Annual Round-up 2021, PropTiger Research

Buyer sentiment driving new launch wave

Amid a visible change of approach towards housing ownership among consumers in the aftermath of the pandemic, real estate developers in India stepped up efforts to offer better housing choices in 2021. As a result of this, barring Chennai where a marginal decline was seen, new supply showed a jump in all cities covered in the analysis during the year.

“Beyond the numbers which speak for themselves, what is remarkable is the resilience of the real estate market in India. Despite multiple waves of the pandemic, which resulted in multiple lockdowns, the residential real estate market has not only bounced back but is also on the cusp of a cyclical upturn. With policy support from the government and the low interest rate regime maintained by the RBI, I am very confident about the sector, entering into 2022,” said Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & PropTiger.com.

“Developers have been quick to respond to the positive changes in buyer sentiment, as evidenced by the offers available in the market, especially during the festive season of 2021, which resulted in improved metrics for both, demand and supply.  Basis the data available with us, it seems very likely that we will see an increase in prices in 2022, even as the inventory overhang continues to decline in 2022. The biggest trend we foresee is that the real estate market will continue to consolidate its growth in 2022 as well,” said Rajan Sood, Business Head, PropTiger.com.

New Launch

2021

2020

QoQ

YoY

City

Qtr4

Qtr3

Qtr4

Ahmedabad

17,311

13,440

3,003

29%

476%

Bengaluru

8,524

3,072

6,104

177%

40%

Chennai

3,797

2,332

4,887

63%

-22%

Delhi NCR

6,021

1,748

5,120

244%

18%

Hyderabad

19,809

12,342

12,723

61%

56%

Kolkata

1,944

442

1,658

340%

17%

Mumbai

9,868

21,820

10,070

-55%

-2%

Pune

7,035

10,015

10,764

-30%

-35%

Total

74,309

65,211

54,329

14%

37%

Source: Real Insight Residential – Annual Round-up 2021, PropTiger Research

Increase in raw material price pushed property prices up in 2021

Consistent increase in raw materials prices is pushing up property prices, with all eight prime residential markets covered in the report showing annual increase in per square foot price of new properties. Ahmedabad and Hyderabad housing markets were leading this pack, with an annual price hike of 7% each in 2021.

City-Wise Price card

City

Weighted average price in Rs per square foot as on December 2021

YoY % growth

Ahmedabad

3,400-3,600

7%

Bangalore

5,500-5,700

6%

Chennai

5,400-5,600

5%

Delhi NCR

4,400-4,600

5%

Hyderabad

5,900-6,100

7%

Kolkata

4,300-4,500

5%

Mumbai

9,700-9,900

4%

Pune

5,100-5,300

3%

India

6,300 – 6,500

6%

Source: Real Insight Residential – Annual Round-up 2021, PropTiger Research

Inventory overhang declines to 3.5 years

The improvement in sales in 2021 has been instrumental in lowering the inventory burden for India’s real estate developers. Consequently, inventory overhang — the estimated time builders would take to sell off the existing unsold stock, based on the current sales velocity— has now declined to 42 months. As on December 31, 2021, builders had an unsold stock consisting of 7,26,943 units in India’s eight housing markets.  While the inventory overhang is the highest for the Delhi-NCR market at 68 months, it is the lowest for Kolkata, at 31 months. 

India’s inventory burden

City

Unsold stock on December 30, 2021

Inventory overhang in months

Ahmedabad

63,096

45

Bangalore

66,754

32

Chennai

35,729

33

Delhi NCR

1,02,147

68

Hyderabad

65,635

35

Kolkata

25,716

31

Mumbai

2,48,815

51

Pune

1,19,051

34

India

7,26,943

42

Source: Real Insight Residential – Annual Round-up 2021, PropTiger Research

NOTE: Housing markets covered in the report includes Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad), MMR (Mumbai, Navi Mumbai & Thane) and Pune

 

 

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Positive Sentiment, Increased Affordability Boost Home Sales, Supply In Q3: PropTiger Report

Homes sales and new supply numbers began to witness appreciation amid economic indicators signaling signs of an overall recovery in India, data show.

According to Real Insight (Residential): July – September (Q3) 2021, a quarterly analyses of India’s eight prime residential markets by REA India-owned real estate company PropTiger.com, demand and supply metrics have shown a significant improvement in the period between July and September 2021 (Q3 CY2021), indicating that the nascent recovery for India’s second-largest employment-generating sector could firm up further during the ongoing festive season.

 

Sales jump on the back of improved consumer confidence

According to the report, that analyses housing markets of Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, NCR, MMR and Pune, a total of 55,907 new housing were sold in these markets during the three-month period in July and September, an increase of 59% when compared to the corresponding period in 2020.

Sales show quarterly, as well as annual jump

Sales

2021

2020

QoQ

YoY

City

Q3

Q2

Q3

Ahmedabad

5,483

1,282

3,339

328%

64%

Bengaluru

6,547

1,591

4,825

312%

36%

Chennai

4,665

709

2,317

558%

101%

Delhi NCR

4,458

2,828

4,427

58%

1%

Hyderabad

7,812

2,429

3,260

222%

140%

Kolkata

2,651

1,253

2,479

112%

7%

Mumbai

14,163

3,381

7,378

319%

92%

Pune

10,128

2,495

7,107

306%

43%

Total

55,907

15,968

35,132

250%

59%

Source: Real Insight (Residential) – July-September (Q3) 2021

The manifold quarter-on-quarter (QoQ) jump in home sales in the quarter-ended September 30, 2021, was much higher, primarily because of the low benchmark – only 15,968 units were sold during the May-July period this year (Q2 2021), the report shows.

Units in the price bracket of less-than-Rs-45-lakhs contributed the highest to the quarterly sales, by claiming a 40% share in the overall sales, it added.

The tremendous jump in sales numbers could also be attributed to the 10-year-low home loan interest rates – home loans are currently available at 6.50% annual interest

Improved liquidity, demand result in three-fold jump in new supply

Amid an economic uncertainty that weighed heavy on new supply during the period starting March 2020, launches had shown severe fall since. However, Q3 CY2021 saw launches showing manifold increase in numbers on the back of improved liquidity conditions and support policies.

After a prolonged period of decline, new supply in India’s eight prime residential markets also saw a remarkable upswing in Q3, showing a three-fold jump of 228% to 65,211 units when compared to Q3 2020 wherein a total of 19,865 units were launched in these eight prime real estate markets.

The sequential increase in the new supply was also not any less impressive – a total 21,836 units were launched in Q2 of the calendar year, indicating a 199% jump in Q3. 

Of the total units launched in Q3, 33% were from the Rs 45-75 lakhs price bracket, the highest number of launches seen in any segment during the quarter.  Mumbai (33%) and Ahmedabad (21%) saw the highest number of quarterly launches.

Inventory overhang declines to 44 months; further improvement likely during the festive season

As on September 30, 2021, builders in India had an unsold stock consisting of 7,20,519 units across the eight residential markets. Even though new supply numbers added to the overall number of units available for purchase in the eight housing markets, the inventory overhang during Q32021 declined to 44 months from 48 months in the previous quarter.

This decline in the inventory overhang – the estimated period builders in a particular market are likely to take to sell off their unsold stock at the existing sales velocity – can be attributed to the upswing in demand during the quarter, which is likely to improve further in Q4. This may lead to further reduction in the inventory overhang during the festive season.

While the NCR has the highest inventory overhang of 62 month, Hyderabad has the lowest inventory overhang at 25 months. Kolkata has the lowest inventory stock in the country while the MMR market has the highest unsold stock.

Unsold stock: City-wise break-up

City 

Unsold inventory as on September 30, 2021

Inventory overhang in months

Ahmedabad

51,208

42

Bengaluru

67,644

35

Chennai

35,145

32

Delhi NCR

100,559

62

Hyderabad

50,103

25

Kolkata

26,382

32

Mumbai

261,385

58

Pune

128,093

41

Pan India

720,519

44

Source: Real Insight (Residential) – July-September (Q3) 2021

Overall price growth remains muted; average growth remains positive for Ahmedabad

As supply-side issues continued to impact the cost of undertaking housing projects in India in the aftermath of the pandemic, all housing markets included in the analysis showed only a slight uptick in average prices of flats and villas. The price rally seen in Ahmedabad was the sharpest during the quarter.

Price growth: City-wise break-up

City

Average price range as on September 30, 2021 (in Rs per sq ft)*

Annual growth in %

Ahmedabad

3,300 – 3,500

8

Bangalore

5,400 – 5,600 

4

Chennai

5,300 – 5,500

3

Hyderabad

5,800 – 6,000

6

Kolkata

4,100 – 4,300

2

MMR

9,600 – 9,800

3

NCR

4,300 – 4,500

5

Pune

5,000 -5,200

4

National average

6,200 – 6,400

5

Source: Real Insight (Residential) – July-September (Q3) 2021

*All prices are weighted average prices as per new supply and inventory.

 

‘Festive season to bring about complete turn-around’

With key growth indicator already moving in the right direction, the ongoing festive season is likely to speed up the pace of recovery for real estate, the report says.

“It is now a well-established fact that the notion of property ownership has gained significant currency in the aftermath of COVID and its impact on the way people live and work. Even as this has helped build positive consumer sentiment vis-à-vis residential real estate, support measures by the government and the banking sector have set the ball rolling for a positive change in momentum for the sector. In combination, these two factors have helped drive both, demand and supply, metrics upwards during the July-September quarter of 2021,” says Dhruv Agarawala, group CEO, Housing.com, PropTiger.com and Makaan.com.

“The stage is now set for the festive season to give that much-desired fillip for the industry that it has been eagerly awaiting and working so hard for,” Agarwala adds. 

Rajan Sood, business head, PropTiger.com said, “Considering housing affordability is at a record high this festive season on the back of 10-year low home loan interest rates and sops offered by some state governments in the form of reduced stamp duties and circle rates, we expect housing markets in the top 8 cities to show solid stability in the ongoing quarter. Though the overall cost of construction has gone up due to the rise in the cost of crucial input materials, rather than seeing an increase in prices, buyers are being offered discounts during the festive season.”

“States can support the recovery process further by either announcing newer incentives for homebuyers or by extending or launching stamp duty and circle rate waivers,” Sood added.

 

 

***

Property Prices In Ahmedabad, Hyderabad Rise In Q2 CY21 Despite COVID-19 Second Wave: PropTiger Report

July 6, 2021: Some housing markets in India continue to show remarkable resilience as they continue to see value appreciation, the overall negative impact of the second wave of the Coronavirus pandemic notwithstanding.

According to Real Insight (Residential) – April-June (Q2) 2021, a quarterly analysis of the country’s eight prime residential markets by Elara Technologies-owned real estate advisor PropTiger.com, the average value of new properties in Ahmedabad and Hyderabad has seen an individual 5% positive growth during the second quarter of the current calendar year (Q2CY21).

Price growth: City-wise break-up

 

City

Average price as on June 30, 2021 (in Rs per sq ft)

Annual growth in %

Ahmedabad

3,251

5

Bangalore

5,495

4

Chennai

5,308

3

Hyderabad

5,790

5

Kolkata

4,251

2

MMR

9,475

No change

NCR

4,337

2

Pune

5,083

3

National average

6,234

3

Source: Real Insight: Q2 2021

While prices of flats and apartments have been consistently rising in Hyderabad since 2014, when Andhra Pradesh was bifurcated, the spike in values of properties in Ahmedabad is a new trend.

“The price rise in Ahmedabad could be attributed to the low base price of new properties. When compared to most other markets included in the analysis, Ahmedabad is the most affordable housing market right now, as far as average values are concerned. The recent increase in prices of construction materials caused by supply constraints is also fueling the price hike,” said Mani Rangarajan, group chief operating officer, Housing.com, Makaan.com and PropTiger.com.

In fact, because of the same concerns, all cities covered in the analysis showed positive price movement, no matter how insignificant, barring the MMR, where growth remained unchanged when compared to the April-June period of 2020.

 

New launches and supply take a hit

While liquidity-starved developers showed caution in launching new projects during the quarter, homebuyers also stayed put, with respect to making a move on their home-buying plans. This is despite the fact that the RBI continues to keep the repo rate unchanged at four per cent, helping the banking system to maintain a record low home loan interest rate regime – you can get a home loan at annual interest rates starting from 6.65 per cent.

Real Insight (Residential) – April-June (Q2) 2021 New Launches

According to the report, a total of 21,839 new units were launched in the eight markets during Q2CY21, showing a decline of 59 per cent, when compared to the January-March period of 2021. However, when compared to Q2CY20, new launches show an increase of 74 per cent.

Similarly, a total of 15,968 units were sold across these eight markets during the June quarter, showing a 16 per cent YoY decline and a 76 per cent quarterly fall.

Real Insight (Residential) – April-June (Q2) 2021 Sales

“Due to the challenging situation during the April-June quarter in 2021, when infections and casualties caused by the Coronavirus hit a peak before subsiding towards the end of May, both, demand and supply, were hit during the first two months, when most states put in place various restrictions and lockdowns to curb the spread of the virus. However, some ground on both the numbers was covered during the month of June, when states started to open up. The same is reflected in Q2 demand and supply numbers. We expect improvement on both these indicators of residential real estate health in the upcoming quarters, since India’s vaccination programme is likely to gather pace. It is also important to mention that despite the lockdowns and subdued sentiment, the government gave the sector a much-needed boost with the passing of the Model Tenancy Act, which is expected to give a fillip to rental housing supply in the country. The RBI is also doing its bit by continuing to maintain its accommodative stance, keeping the repo rate and reverse repo rate at a status quo of 4% and 3.35%, respectively, which in turn would allow the low mortgage interest rate regime for home buyers, to continue. All these measures, combined with latent demand, will certainly help our sector to bounce back faster than what was anticipated earlier,” said Dhruv Agarwala, group CEO, Housing.com, Makaan.com and PropTiger.com.

 

 

Unsold stock remains nearly the same as last year

Owing to pressure from the demand side, the unsold housing stock remained nearly the same. As on June 30, 2021, these housing markets had a total of 7,11,215 unsold units. Due to similar reasons, the inventory overhang also increased to 48 months from 47 in the previous quarter. Inventory overhang is the average estimated time that builders will take to sell off the existing unsold stock, at the current sales velocity.

“While the impact of the second wave of the virus was universal, some markets were impacted more, as they were the hardest hit by the pandemic. This has been reflected in the high levels of unsold inventory and higher inventory overhang in markets like the NCR and MMR. This is especially true of the NCR market, where the inventory overhang was as high as the MMR, even though the unsold stock in that market was less than half of what is there in the MMR,” said Rangarajan.

 

The report points out that the NCR market continues to suffer, not only from high levels of unsold inventory but also from a remarkably high overhang.

While the MMR market had an unsold housing inventory over twice the size of that in the NCR, the inventory overhang for both the markets was the same, i.e., 64 months. Pune also has a considerably high unsold inventory, data show.

 

 

Unsold stock: City-wise break-up

City

Unsold stock on June 30, 2021

Inventory overhang (in months)

Ahmedabad

43,251

42

Bangalore

71,119

40

Chennai

37,478

42

Hyderabad

45,573

27

Kolkata

28,591

36

MMR

253,728

64

NCR

103,269

64

Pune

128,206

44

National average

711,215

48

Source: Real Insight: Q2 2021

 

 

***

Sales Rise 12% In Jan-March Quarter Amid Increased Housing Affordability: PropTiger Report

April 9, 2021: Housing sales in India’s most active residential markets showed an increase of 12 per cent during the January-March period of 2021 when compared to the October-December quarter of 2020, at a time when government support measures have increased housing affordability for India’s homebuyers, shows a report by online property brokerage company PropTiger.com.

Real estate developers in India’s eight prime residential markets sold a total of 66,176 apartments in the primary segment. This, however, is a decline of five per cent   when compared to the sales numbers in the January-March period of 2020.

The report attributed the quarterly increase in home sales to stamp duty and circle rate reductions by states, and affordable lending rates by banks.

 

New supply increases 49% YoY

Marking an annual appreciation of 49 percent year-on-year, builders in India’s eight prime residential markets launched 53,037 units during the three-month period amid an improvement in the possibilities of securing funding.  On the quarter-on-quarter (QoQ) basis, however, new launches showed a marginal decline of two per cent. 

 

Prices growth remains stable

Barring Ahmedabad and Hyderabad, no other city included in the analysis showed any marked upwards movement in average annual values of property in the primary segment. Average values in both the cities improved by five per cent annually. 

 

Annual price growth: City-wise break-up

City

Average price as on March 31, 2021 (in Rs per square foot)

Annual growth in %

Ahmedabad

3,234

5

Bangalore

5,450

3

Chennai

5,275

3

Hyderabad

5,713

5

Kolkata

4,208

1

MMR

9,474

No change

NCR

4,327

1%

Pune

5,76

3

National average

6,234

3

Source: Real Insight: Q1 2021

  

Inventory declines but overhang increases

Despite an improvement in demand, there has not been any prominent change in the unsold stock in these markets. The unsold inventory in the eight markets stood at 705,344 as on March 31, 2021. The MMR and Pune contributed the most to this unsold stock, with a combined share of 54 per cent.

Also, despite the various government measures launched to support growth, demand has yet to reach the pre-Covid-19 level. This is reflected in the fact that inventory overhang —the estimated time builder would take to sell off the existing stock keeping in view the current sales velocity — has remained unchanged at 47 months as it was in the previous quarter.

 

Unsold stock: City-wise break-up

City

Unsold stock on March 31, 2021

Inventory overhang

Ahmedabad

42,991

42

Bangalore

69,285

37

Chennai

37,697

40

Hyderabad

39,191

25

Kolkata

28,827

36

MMR

254,183

62

NCR

105,279

68

Pune

127,891

41

National average

705,344

47

Source: Real Insight: Q1 2021

“As the economy gradually marches towards recovery, as reflected in global rating agencies and think-tanks revising India’s growth forecasts for 2021 and 2022, the residential real estate market in the country is also seeing a positive momentum on the back of various measures taken by the centre and state governments, the RBI and the entire banking system (as demonstrated in home loan rate reductions). This positive change is visible in the first quarter through an increase in supply numbers, an indication that developers are more comfortable now with regard to liquidity support and buyer sentiment,” said Dhruv Agarwala, group CEO, Housing.comMakaan.com and PropTiger.com.

“The metrics on the demand side have also been largely stable, with the job market opening up again in various industries, giving people the confidence to take advantage of a property market that is at its most affordable for home buyers in years,” he added.

 

***

Home Sales, New Launches See Quarterly Improvement In 4 2020

January 11, 2021: After touching record low levels amid the Coronavirus outbreak and the following lockdowns, housing markets in India’s eight prime residential markets have shown some signs of revival, with improvements in launch and sales numbers during October-December 2020.

PropTiger.com data show housing sales in India’s eight prime residential markets including Ahmedabad, Bengaluru, Chennai, NCR (includes Gurgaon, Noida, Greater Noida, Ghaziabad and Faridabad), Hyderabad, Kolkata, MMR (includes Mumbai, Navi Mumbai and Thane) and Pune hit 58,914 units, a 68% increase over the July-September period of 2020. An annual comparison of these numbers with the data for Q4 2019, however, shows a decline of 27%.

Similarly, a total of 54,329 new units were launched in the October-December period of 2020 across the eight markets covered in the analysis, showing a 173% Quarter-on-Quarter (Q0Q) growth in new supply. The numbers also reflect a year-on-year (YoY) increase of 12%, when compared to the data for the corresponding period in 2019.

Barring Ahmedabad, there has been a quarterly increase in launches across markets, a city-wise break-up of launches shows in Q4 2020. The highest number of units were launched in Hyderabad, Pune and Mumbai, respectively.

According to Real Insight: Residential Annual Roundup 2020, much of this improvement in sales and launches could be attributed to the combined efforts of central and state governments, the RBI and the developer community.

“The quarterly spike in supply numbers could largely be attributed to the increased popularity of residential realty in the aftermath of the Coronavirus pandemic that has laid bare the insecurities of other asset classes. Various government-offered support measures to provide a cushion to the developer community, have also provided them with some scope to launch new schemes,” the report says.

“All factors considered, the sector has shown remarkable tenacity in 2020, against unprecedented odds that have caused the economy to contract and impacted consumer spending. The fact that housing sales in India’s key markets have started to bounce back, in spite of the general gloom caused by the pandemic, shows the immense potential of the real estate sector, which employs the highest number of unskilled workers in the country. The sector’s performance seems particularly impressive, given that the pandemic has impacted the income-generating capacity of a large number of people. End-users and investors continue to feel confident about investing in real estate. Prices continued to remain stable and the overall outlook looks positive,” said Dhruv Agarwala, group CEO, Housing.com, Makaan.com and PropTiger.com.

 

Break-up of sales and launches in 8 cities in Q4 2020

City

Launches

Sales

Ahmedabad

3,003

3,125

Bengaluru

6,104

7,660

NCR

5,120

6,065

Chennai

4,887

3,180

Hyderabad

12,723

6,487

Kolkata

1,658

2,518

MMR

10,070

18,331

Pune

10,764

11,548

Total

54,329

58,914

 Source: Real Insight: Residential Annual Roundup 2020

To read the full report, click here.

 

“While the trends point to a market recovery and positive news, given the imminent launch of a vaccine that will ease the pandemic concerns, our optimism should be cautious. Buyers continue to expect low home loan rates, extension of developer offers and prefer ready-to-move-in inventory than those under construction. We believe that the government should continue to support the sector, through moves such as lowering stamp duty, re-evaluating circle rates and increasing the tax deduction limit for interest on home loans, to ensure that the sector continues to revive. The sector is digitising at a rapid pace and more than 90% of potential home buyers have moved online, to shortlist properties to buy. We have seen a strong growth in online booking throughout 2020,” added Mani Rangarajan, Group COO, Housing.com, Makaan.com and PropTiger.com.

 

Unsold stock: City-wise break-up

After undergoing a 9% decrease annually in Q4 2020, the unsold stock in India’s eight markets stood at 7,18,483 units as on December 31, 2020. However, the average inventory overhang – the estimated time builders should take to sell off the existing unsold stock at the current sales velocity – has increased to 47 months as of December 2020, as compared to 27 months in December 2019.

At 55% combined, Mumbai and Pune continue to hold the highest share in the unsold stock and the inventory overhang is the highest in the NCR at 72 months. On the other hand, Hyderabad has the lowest inventory overhang of 29 months.

 

City

Unsold stock on December 31, 2020 (units)

Inventory overhang (in months)

Ahmedabad

38,069

38

Bangalore

71,133

36

Chennai

35,583

42

Hyderabad

39,234

29

Kolkata

30,060

40

MMR

2,67,398

58

NCR

1,06,560

72

Pune

1,29,199

40

National average

7,18,483

47

 Source: Real Insight: Residential Annual Roundup 2020

 

Price growth remains flat in Q4 2020 amid demand-side pressure

Property values of newly launched projects across cities in the one-year period also largely remained flat, except in Ahmedabad and Hyderabad. Annual per sq ft values of new properties in Ahmedabad and Hyderabad increased by 7% and 5%, respectively, in Q4 2020 when compared to Q4 2019.

Growth of average prices has been flat in the NCR and MMR markets, considered among some of the most expensive property markets in the world, on concerns of material supply, aggravated construction costs and labour shortage.

 

Price growth: City-wise break-up

City

Average price as on December 31, 2020 (in Rs per sq ft)

Annual growth in %

Ahmedabad

3,213

7

Bengaluru

5,342

2

Chennai

5,228

2

Hyderabad

5,602

5

Kolkata

4,202

2

MMR

9,448

No change

NCR

4,268

No change

Pune

5,077

4

National average

6,042

No change

Source: Real Insight: Residential Annual Roundup 2020

 

 

***

Housing Markets Inch Towards Recovery In Sep Quarter: PropTiger Report

October 14, 2020: The affordable housing segment continues to play an instrumental role as India’s residential real estate market attempts to spring back to its feet after taking a severe beating on account of the Coronavirus pandemic. According to Real Insight Q3 2020, a quarterly analysis of key market indicators in India’s prime residential markets of Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, the Mumbai Metropolitan Region (MMR), the National Capital Region (NCR) and Pune, housing units in the sub-Rs 45-lakh price bracket made the biggest contribution to home sales during the July-September quarter (Q3) of 2020, contributing 45% to overall sales numbers.  A total of 35,132 units were sold during the period between July and September 2020, an increase of 85% from the previous quarter. When compared to the same period in 2019, however, sales show a decline of 57%.

On the supply side, too, the affordable housing segment played a big role. Of the 19,865 new units launched during the three-month period, 43% were from the sub-Rs 45-lakh price bracket. New supply also saw a quarter-on-quarter increase of 58%.

Recall here that under the income tax laws in India, housing units worth up to Rs 45 lakhs qualify as affordable homes.

“Green shoots are visible, pointing to the start of a recovery in residential real-estate, evidenced by the improvement in new launches and sales on a quarter-over-quarter basis. These are unprecedented times, which have made buyers aware of the important role that homes play in ensuring their well-being, as well as their physical and emotional security. This, together with the fact that real estate is a hard asset and the fact that home loan rates are near a 15-year low, have encouraged buyers to return to the market. In recent times, the government and the Reserve Bank have also taken steps, to enhance liquidity in the sector and encourage banks to extend home loans at cheaper rates. With several macro-economic indicators showing a positive trend in September, we may well be on the road to a more sustained recovery and the upcoming festival season will be critical, in determining the growth trajectory in the sector over the next 12 months,” said Dhruv Agarwala, group CEO, Housing.com,  PropTiger.com and Makaan.com.

While new launches increased 58% when compared to the April-June period of this year, they fell by 66% when compared to the corresponding period of 2019, data show.

The annual comparison is indicative of the fact that housing markets in India are a long way from reaching their pre-COVID-19 levels, which itself had been quite lacklustre in the past half-a-decade, because of an overall slowdown in the housing market.

 

Key numbers for July-September quarter 2020

Sales

Up 85% qoq

Down 57% yoy

Launches

Up 58% qoq

Down 66% yoy

Source: Real Insight Q3 2020

 

Price growth remains flat

Even though polls are predicting a fall of 10% in property values in 2020 on account of the Coronavirus pandemic, prices of apartments in key markets have not undergone any significant reduction. Markets like Ahmedabad and Hyderabad have, in fact, shown some upward movement in average property values on an annual basis.

“Consumers continue to perceive real-estate as the most stable asset and a number of them are looking to upgrade their homes, as working from home is likely to continue. The government has also been supportive, by taking steps to make buying more attractive. While states such as Maharashtra have reduced stamp duty rates on property transactions, financial institutions have also brought home loan interest rates to the sub-7% level since the RBI brought the repo rate to 4%. On its part, the developer community is not only ensuring buyers are able to book their future homes using virtual tools but also offering festive discounts and easy payment plans. We are optimistic that sales during the festive season will be encouraging and will help drive further recovery in the sector,” says Mani Rangarajan, group COO, Housing.com, Makaan.com and PropTiger.com.

 

Average property prices in key markets 

Weighted average property prices in top 8 residential markets

City

Average price as on September 2020 (in Rs per sq ft)

Percentage change over September 2019

Ahmedabad

3,151

6%

Bangalore

5,310

2%

Chennai

5,240

2%

NCR

4,232

-1%

Hyderabad

5,593

6%

Kolkata

4,158

1%

MMR

9,465

1%

Pune

4,970

2%

National average

6,066

1%

Source: Real Insight Q3 2020

 

Overhang increases even though unsold stock reduced by 12% yoy

As supply remained limited, with developers showing caution in launching new projects, the unsold inventory in the eight markets reduced by 12% yoy and 2% qoq. Barring Hyderabad, where unsold inventory increased by 3% as compared to the previous quarter, due to an influx of new supply, all the other cities covered in the analysis witnessed a reduction in unsold inventory in the range of 1%-5% as compared to the previous quarter.

While the national inventory overhang increased from 28 months in September 2019 to 43 months in September 2020, it remained the highest in the NCR, at 58 months. Inventory overhang is the estimated time period within which developers will be able to sell off the current stock. This projection is made, keeping in view the current sales velocity.

 

Inventory stock and overhang in top eight markets

City

Inventory as on September 30, 2020 (units)

Inventory overhang (in months)

Ahmedabad

38,736

31

Bangalore

72,754

36

Chennai

34,902

39

Hyderabad

33,072

25

Kolkata

31,070

39

MMR

2,72,248

52

NCR

1,07,634

58

Pune

1,32,652

37

National

7,23,068

43

Source: Real Insight Q3 2020

To read the full report, click here.

 

***

Home Sales Dip By 79% In June Quarter, New Supply Falls By 81%: PropTiger Report

July 29, 2020: Any chances of a recovery for real estate in India, which has been reeling under the impact of a demand slowdown for the past five years, have been toppled by the Coronavirus pandemic, housing sales and supply numbers available with PropTiger.com show.

According to Real Insight: Q2 2020, a quarterly analysis of eight prime residential markets in India, only 19,038 units were sold during the period between April and June 2020, when the government had imposed strict travel restrictions in order to contain the virus’ spread.  The adverse effect of the pandemic was even more pronounced on new supply, as only 12,564 units were launched during the three-month period.

In percentage terms, housing sales declined 79% annually while falling 73% QoQ.  Similarly, new supply dipped 81% annually while falling 65% QoQ.

 

Click here to read the full report.

 

Launch and sales numbers

 

Launches (units)

Sales (units)

Q1 2018

79,943

84,775

Q2 2018

78,574

85,053

Q3 2018

64,569

88,935

Q4 2018

73,621

91,965

Q1 2019

71,270

92,683

Q2 2019

65,238

92,764

Q3 2019

59,216

81,886

Q4 2019

48,530

80,253

Q1 2020

35,668

69,555

Q2 2020

12,564

19,038

 Source: Real Insight: Q2, 2020

 

“The current pandemic is an unprecedented black swan event that is expected to contract growth in the global economy, including that of India. As anticipated, demand was adversely impacted due to economic uncertainty, combined with growing unemployment. Our recent Housing.com-NAREDCO buyer survey indicated that buyers have pushed back their purchasing decision by up to a year. While, developers are increasingly offering schemes, such as flexible payment plans, selective discounts and price protection plans, to attract buyers, they are understandably cautious and are focusing on completing existing projects. In fact, the delivery of existing projects may get pushed back, depending on how quickly supply-chain, labour availability and liquidity inflows are restored. We are unlikely to see new launches increase significantly for the next few quarters, as developers wait for demand revival and augment their cash flows through the sales of existing units. Notwithstanding these lacklustre results, buyers continue to affirm their faith in real estate as an asset class, with over a third of our surveyed buyers choosing it as their preferred form of investment,” says Mani Rangarajan, Group COO, Housing.com, Makaan.com and PropTiger.com.

 

Inventory overhang at 35 months

When compared to the levels seen during the same quarter last year, unsold stock declined 13% in the eight cities, primarily on account of a fall in new launches. As on June 30, 2020, developers had an inventory consisting of 7,38,335 units across these markets. In Q2 2019, the unsold stock stood at 8,46,460 units.

At 55%, Mumbai and Pune markets together contributed the highest share of unsold stock, followed by NCR (15%) and Bengaluru (10%).

Inventory overhang, however, has increased to 35 months as against 28 months last year. Inventory overhang is the time developers would take to sell off the unsold stock, at the current sales velocity. The NCR market has the highest inventory overhang as of now, while Hyderabad has the lowest, at 19 months.

 

Inventory burden 

City

Inventory overhang (in months)

Ahmedabad

26

Bengaluru

32

Chennai

36

Hyderabad

19

Kolkata

38

MMR

40

NCR

53

Pune

30

Data as on June 30, 2020

Source: Real Insight: Q2, 2020

 

Price card

While some noteworthy movement was seen in Hyderabad and Ahmedabad housing markets, in terms of price appreciation, rates largely remained range-bound in most other cities. However, rates have not undergone any correction either in the past one year.

City

Weighted average price (per sq ft)

Annual growth in Q2 2020

Ahmedabad

Rs 3,104

6%

Bengaluru

Rs 5,299

3%

Chennai

Rs 5,138

Flat

Hyderabad

Rs 5,505

7%

Kolkata

Rs 4,178

3%

MMR

Rs 9,490

1%

NCR

Rs 4,293

1%

Pune

Rs 4,951

2%

 Data as on June 30, 2020

Source: Real Insight: Q2, 2020

 

Note: Cities included in the analysis are Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, NCR, MMR and Pune.

 

 

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Housing Sales Drop 26% In Q4 Amid Corona Scare: PropTiger

May 27, 2020: If India’s real estate sector was finally looking forward to restoration of normalcy, after a prolonged demand slowdown, the Novel Coronavirus outbreak has dashed all its hopes. According to a report by PropTiger Datalabs, housing sales in India’s nine prime residential markets saw an annual decline of 26 per cent for the last quarter (Q4) of the financial year 2019-20 (FY20). The report, titled Real Insight-Q4 FY20, also shows that new launches in these markets fell by 51 per cent year-on-year during the January-March period, amid the government announcing a 40-day lockdown, to slow down the spread of the virus in India.

 

Particulars

No of units in Q4FY20

Quarterly  change

Yearly change

Launches

35,668

-27%

-51%

Sales

69,235

-11%

-26%

Inventory

738,898

-6%

-15%

 Source: Real Insight: Q4FY20

 

Sales, launches fall across cities

During the quarter, new supply and sales fell across the nine markets ─ Ahmedabad, Bengaluru, Chennai, Gurugram, Hyderabad, Kolkata, Mumbai, Pune and Noida ─ covered in the analysis. While Gurugram saw the sharpest fall in sales (-73 per cent YoY), Ahmedabad witnessed the steepest decline in new launches (-96% annually).

The report adds that housing sales and launches will continue to fall in Q1 of FY21, because of the Coronavirus outbreak and the subsequent lockdown.

“Owing to the unprecedented health emergency, India has imposed a 40-day lockdown till May 3, 2020, to stem the Coronavirus infections. The severe restriction on people’s movement, will have an adverse impact on both, sales and launches, in Q1FY21. Consequently, there might not be much relief for developers from the existing inventory burden,” it says.

“While the Chinese economy has been reeling under the impact of the Coronavirus contagion since December 2019, the situation started to get worrisome in India only towards March 2020. Following the spike in number of infections, the government first announced a 21-lockdown on March 24 and then, extended it till May 3, keeping in mind the severity of the situation. The lockdown, which has virtually brought to a standstill all economic activity in the country, has been detrimental to all sectors, including real estate. While there is no questioning the merit of the lockdown, its adverse impact is visible on housing sales and launches in the last quarter of last fiscal,” says Dhruv Agarwala, group CEO, Elara Technologies.

“While the short-term negative impact of the pandemic on sales and launches can’t be negated, we expect the various support measures announced by the government and the RBI, to yield positive results in the medium term,” Agarwala adds. He also says the lockdown is likely to bring about a major change in consumer behavior, going forward. “Early indications are already there. While physical site visits to properties have stopped completely, online searches, as well as online bookings of apartments continue to take place. The adoption of digital platforms is likely to go up in the coming months. Much like mobile phone manufacturers that launch new products on a digital platform before a launch on traditional offline channels, we believe several real estate firms, particularly the reputed names, will adopt a similar strategy in the coming weeks and beyond,” Agarwala says.

 

Inventory declined 15%

Housing inventory reduced by 15 per cent during the quarter ending March 31, primarily because not many fresh units were added during this period. As on March 31, 2020, real estate developers in the nine residential markets were sitting on a housing inventory of 7,38,898 units and at the current sales velocity, they would take 27 months to sell this stock , shows the report.

As for the concentration of this unsold stock, the Mumbai Metropolitan Region (MMR) and Pune contribute the most to the inventory. Together, these markets in western India have over 4.18 lakh unsold homes.

Price rise continues in Hyderabad

On the pricing front, Hyderabad continued to show positive annual growth, with prices increasing by nine per cent during the quarter when compared to the same period of the earlier fiscal. In other markets, the growth has been dismal. Prices, however, showed only a slight downward movement in Gurugram, falling by one per cent in the past one year. Prices did not fall in any other market in the past one year, shows the report.

 

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Festive Season Fails To Boost Sentiment; Housing Sales Fall 30% In Q3: PropTiger Report 

January 15, 2020: The festive spirit failed to give a boost to the muted buyer sentiment in India as housing sales numbers continued to show a decline in Q3FY20 amid expectations of an improvement.  According to Real Insight, a quarterly analysis of India’s nine prime residential markets by PropTiger.com, home sales during the October-December 2019 period declined by 30 per cent when compared to the same period last year. Sales fell across cities during the quarter, indicating a nation-wide phenomenon.  

Amid aggravating liquidity concerns, project launches also continued to fall, registering a 44 per cent decline in Q3FY20 when compared to Q3FY19. Project launch numbers also showed decline across cities.

“Several measures launched by the government in the past to revive real estate growth seem to have made little impact. The sector being a major contributor to overall growth, which hit 4.5 per cent in the July-September period, we expect further assistance from the government, which would nudge buyers to invest in realty. In the Union Budget, we expect finance minister Nirmala Sitharaman to announce measures resulting in higher savings for individual taxpayers, thus, prompting them to get back to property investments,” says Dhruv Agarwala, Group CEO, Elara Technologies.

 

The numbers analysis

 

Q3FY19 (no. of units)

Q3FY20 (no. of units)

Percentage change

Sales

91,464

64,034

-30%

Launches

73,226

41,133

-44%

Inventory

883,483

774,860

-12%

 

Source: Real Insight-Q3FY20

When compared to the levels seen last year, the unsold housing stock reduced by 12 per cent during the quarter ended December 31, 2019 offering some relief to developers for whom inventory is a big burden amid an ongoing demand slowdown.

As against over 8.83 lakh units, developers now have nearly 7.75 lakh units of unsold stock in the nine markets, including Ahmedabad, Bengaluru, Chennai, Gurugram, Hyderabad, Kolkata, Mumbai, Noida and Pune. At the current sales velocity, builders would take 29 months to sell off the existing stock.

Mumbai and Pune together contribute 57 per cent of this unsold stock, the report shows.

 

The outliers

Major contributor:  Mumbai continues to see the most action, contributing 40 per cent to both, launch and sales numbers in Q3.

Affordable housing:  Affordable housing continued to dominate launches as well as sales. While 52 per cent units were launched in this segment during the quarter, affordable homes had a 56 per cent share in overall sales numbers in Q3.

Affordable homes are units priced within the Rs 45-lakh budget.

Ready versus under-construction: Nearly 53,000 such units were sold during the quarter while over 11,000 flats sold in Q3 were under-construction homes.

Pricing: Average property values also showed upwards movement across cities during the quarter, even if only marginally. The price rally, however, continued for India’s pharmaceutical capital Hyderabad, where average property rates increased 13 per cent year -on- year to reach Rs 5,318 per square foot.

 

 

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Home Sales, New Launches Decline In September Quarter: PropTiger Report

Various measures launched by sector stakeholders are yielding only limited results as housing sales in India’s nine key markets declined by 25 per cent during the July-September quarter this year, when compared to the same period last year.

According to Real Insights, a quarterly analysis of key residential markets in the country by PropTiger Datalabs, new unit launches fell by 45 per cent in the September quarter year-on-year (y-o-y), while housing sales fell by 25 per cent. The only positive news was the reduction in unsold housing stock, with inventory declining by 13 per cent over the July-September quarter in FY19.

As against 61,679 fresh units launched in Q2 FY19, only 33,883 new homes were launched in Q2FY20. Of these, 41 per cent were priced at Rs 45 lakhs or less. While new launches declined across cities during the quarter except Gurugram, the highest share of fresh units during the three-month period, was claimed by Mumbai and Pune

A total of 65,799 units were sold during the quarter ending September this year as against 88,078 units during the corresponding quarter the previous year. Nearly half the units sold during the quarter were affordable homes.

“While new launch numbers might continue to fall in the coming quarters amid the liquidity crunch, we expect home sales numbers to improve, factoring in the festive spirit. Record low interest rates would encourage buyers this festive season,” says Dhruv Agarwala, Group CEO, Elara Technologies.

This could further lower the inventory, especially in affordable housing. More than half the unsold stock currently lying in India’s prime residential markets are affordable homes, shows data. Developers currently have a total unsold stock comprising of over 7.78 units.

The report covers the residential markets of Ahmedabad, Bengaluru, Chennai, Gurugram, Hyderabad, Kolkata, Mumbai, Noida and Pune. It shows that price movement in most cities has been negligible in the past one year, except Hyderabad where, property values have appreciated 15 per cent in the past one year. Barring Gurugram and Chennai where rates moved slightly downwards, prices also moved up in the range of 2-4 per cent.

The report also indicates that more than four lakh new units will be delivered in second half of the financial year. Another, 4.52 lakh ready-to-move-in homes are expected to join the market by FY21. 

Renting Your Apartment By Room? Consider These

Renting by room is a strategy that many landlords apply to earn higher rentals every month. Here the landlord has multiple tenants who do not rent the whole property but just one room. A win-win situation for both the landlord and the tenant, this strategy is mostly followed in areas where a large population of students lives.

In such a scenario the rooms are rented out to individuals and all of them together have collective access to the common living area, the kitchen and terrace if any.

While it sounds like a financially enticing strategy, it comes with its share of challenges for the landlords, too. Think about managing not one but three or four tenants together.

MakaaniQ shares certain challenges that you might face and gives you tips that would help you make the most of renting by room:

Too many tenants

The first and the foremost challenge you will face is multiple queries coming to you the moment you put each room on rent. Popular among student or single working tenants, renting by room can call for a wide variety of tenants who would want to rent the room in your property. Get ready to screen each and every tenant with great detail. Understanding that the property will be shared by different individuals, it is important to ensure everyone’s safety and also, temperament. You don’t want to get calls in the middle of the night about the fight two of the tenants had.

Stability

Living in a property where the tenant only has to pay for a room is enticing for many. While the whole process begins with zeal and a positive of saving on rent, it fades away as quickly with many. Some find sharing the space uncomfortable, the other doesn’t like someone else using their grocery kept in the kitchen, or some that want to have friends over for a party but can’t due to other flatmates. In such a scenario, as a landlord, be ready to see frequent coming and going of tenants. And, keep a list of potential tenants ready for replacement. Also, keep hiring an agent who could help you replace a tenant quickly.

Resolving issues

Getting phone calls from tenants will become common. Imagine four individuals who are not related to sharing a common home. Disconnect, discomfort and day-to-day arguments are bound to happen. Be prepared to resolve issues small or big. The complaints can go to extreme levels, too, like stealing, beating or others. Be ready to resolve conflicts. In conflict, situation takes your agent along.

Hidden expenses

In a property meant for two or three individuals, four are living, the property will call for maintenance. Also, the way a student would deal will the property is different from how the property will look when occupied by a family. Imagine a home occupied by a family would only use one or two air conditioners in one go, in a scenario where a property is rented by room, each room will have to have an air-conditioner and also, all of them will be working at a given time. Each amenity in the property will be used more and hence, would call for frequent maintenance. Moreover, here the landlord will have to charge a certain amount in rent for paying bills because you cannot track each of the individual’s usage from a commonly generated bill. What if you are paying a higher bill than what you are taking from the tenants?

How To Guard Your Property From Encroachments?

Big fortunes are spent in property investments. Invariably, owners are emotionally connected with their immovable assets. In case their investment goes astray, the loss would not only be monetary but also sentimental. This means the job of a property owner does not end when he receives the possession of a priced asset; this property will have to be perpetually guarded, too. To be sure, there are legal remedies available for you in case your land is encroached upon ─ various provisions of the Specific Relief Act, 1963, and the Criminal Procedure Code safeguard the interest of property holders. However, one would certainly prefer prevention to cure. Let us see how we should go about it.

Keep record of property documents

First things first, property purchase-related documents establish your ownership of a property. As a buyer, you really do not have a scope to go slow in matters of getting all the papers in place as soon as the purchase is done. Apart from the sale deed and conveyance deed, key documents also include mutation and registration of the property. You may also have paid taxes on your purchase. These documents will also support your ownership over a property. In case you used bank finance to fund the purchase, the papers provided by the bank would also solve the same purpose. Simply put, the government should have it in its record that this specific property legally belongs to you. No matter how absolutely tiresome you find the task to be, perform each move with great precision. This is an area where you cannot afford to go slow.

Be vigilant 

Consistent vigilance might be difficult in case you live in one location and own a property in another. The task would prove to be even more difficult if the property is located in another city altogether. Going forward, the task would turn out to be more daunting if you have to keep an eye on a property that you own outside of the country. It would be ideal to make personal visits to your property as and when you can. In case that is not a possibility, you could hire people to take care of your property. There are dedicated service providers to do that today. You could also ask your friends or family members in that city to watch your property for you.

Create a fence around the property 

You are the legal owner of a certain property, and it is a must to let the world outside know about it. In case you have bought a piece of land and plan to carry out the construction in future, it is imperative that at least a fence is created to mark your territory. As a warning for trespassers, there should also be a big board declaring that this property belongs to you. It would only be better if a temporary living space could be created to rent out. Apart from earning a monthly rent, you would also have some permanently to take care of your property.

Ask neighbours to keep watch

We live in times when one hardly has any inclination to mingle with one’s neighbours. Where is the time to socialise in your busy life? Strange as it may sound, we need our neighbours more today than we did earlier. After all, they are the first ones to know that happens to us, good or bad. If a neighbour is able to keep a close watch on your property, you will have no reason to worry about your property. At the time of buying the property, you could organise a small function and introduce yourself to your neighbours. Share with them the fact of the matter, and seek their advice. You could lay your trust in the person who you think is responsible enough and willing enough to help you, and entrust him with the responsibility of your property.

Also Read: SC Ruling To Make Adverse Possession Tougher

Should You Hire The Same Agent For Buying And Selling Your Property?

If you are trying to sell your property and find yourself a new home at the same time, you may consider having the same property advisor for both the transactionsWhile that may seem like a good idea, there are certain pros and cons one must consider before deciding to hire a common agent for both, buying and selling a house  

Pros of hiring the same agent to sell and buy a home  

Hiring is quick: If you plan to hire the same agent for both, buying and selling a property, it would be a much easier process. You would have to interview a lesser number of brokers to select the right one. This will save you time.  

Cost effective: Hiring a single agent can help you save money. Do note that even when you hire one agent, you will have to pay him for both the deals. You could, however, negotiate the cost in such a situation and get a bargain on the total brokerage to be paid.  

On average, a broker takes a two per cent commission for an under-Rs-50-lakh deal and a per cent for the ones above Rs 50 lakhs. In a situation where a person hires an agent to complete both the deals, a customer could negotiate on the commission to be paid. 

Single point of contact: It is easier to explain your requirements to one person rather than two. It is also easier to deal with one agent, on a day-to-day basis.   

Cons of hiring the same agent to sell and buy a home  

SpecialisationIt can be difficult to find an agent that has expertise in both, selling as well as buying. What if you are unable to scan the right ones and are stuck with one such agent who is only good at one of the transactions – selling or buying. 

There are chances that you will end up with an agent that has tremendous knowledge in buying a property but lacks the knowledge to sell one. A customer has to tread carefully when hiring an agent. In such a case, a background check can be of help.  

Location of the agentFor customers looking to buy a property in a completely different locality or city from where they are selling one, having a common agent for both the services is not recommended. Agents generally have a lot of knowledge only about the locations where they operate. However, you could check with your agent to help you sell a property by finding you another agent from the same locality where you plan to purchase.  

All You Need To Know About Partial Occupancy Certificate

Under-construction properties offer you the luxury to invest in real estate at a comparatively low price. They also give you the option of living in a brand-new house, something that a resale property does not offer. However, to be able to make the best use of your investment, you need to be well versed with several civic, legal, technical and financial aspects. It is in this context that you must know what role partial occupancy certificates have in the purchase process.

Buyers are aware that they cannot occupy a unit in a housing project, till the time the project has received an occupancy certificate (OC). Now, housing projects that involve large-scale developments, are typically built in a phased manner. Once a part of the project is complete, the developer has the right to apply for a partial occupancy certificate (POC) with the local authority.

For example, if a realtor is building a large housing project that involves construction of, say, eight towers, he could apply for a POC as soon as the work on the first tower is complete. Now, the question that arises, is whether it is legal to occupy a unit, which has received a POC and not an OC?

Also Read: Should You Make The Final Payment Before Receiving Occupancy Certificate

The answer is that you are well within your right to occupy a unit in a tower for which your developer has received a POC. However, the builder must apply for an OC after the completion of the entire project.

Here are some important things about POC that you need to keep in mind:

Home loan: Unless your developer has a tie-up with it, a bank would not be willing to issue you loan for a project that has received only a POC. If you are picking a fresh unit out of the unsold units lying with a developer, make sure he has in his possession an OC and not just a POC.

Validity: The validity of the POC expires as soon as the project is complete—technically, a builder must complete the project for which he has received a POC within seven years. Once that happens, the developer must apply for an OC with the development authority within 30 days. However, a POC is no guarantee that the developer will be able to get the OC too, as this would depend on several factors.

Ownership documents: While you will be able to apply for utilities using the POC, the authorities may not sanction you the documents that prove your ownership of the property. In Bengaluru, for instance, khata certificates by the city’s development body are not issued till you present an OC.

Project progress: Buyers that have been given a POC must closely monitor the progress of the project and ask the developer to issue the OC, as soon as the project is completed in entirety.

Possession: A POC gives the developer a chance to offer for possession the units that lay in a finished tower. If such was not the case, the buyer of tower A would have to wait to get possession till, say, Tower D was completed in a project. Hence, this arrangement works well for both, the buyer and the realtor.

It has been noticed that realtors also insist on buyers taking possession of units, saying they have received a POC for the tower. Upon arrival, buyers find their accommodations unfit for living. First of all, the developer can in no way force you to take possession of what is uninhabitable by standard definition. This must be brought to the notice of the Real Estate Regulatory Authority in your state.

Common facilities: While the law says that the housing units of a partially completed project cannot be handed over without giving the occupants access to common facilities, there have been several instances where buyers have to wait for long to be able to use common facilities.

Also Read: Occupancy Certificate: Why Is It So Important?