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In Chennai housing sector revival, Q2 new launches spurt 100%
The Times of India  |  July 12, 2018

TNN Chennai

Housing sales and new project launches are in revival mode in seven metropolitan cities including Chennai, a recently released report says.

 

Anarock Property Consultants chairman Anuj Puri attributed the sudden spurt in the housing market to about 100% increase in launches in the affordable housing sector. The firm has bracketed apartments priced below Rs 40 lakh as affordable projects.

 

Between the first and second quarters in 2018, there is an average 50% increase in new project launches and 24% increase in sales, says the report that covers cities like the National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Bengaluru, Pune, Hyderabad, Chennai and Kolkata. Against launch of 33,400 units in the first quarter, these cities launched 50,100 units in the second quarter. The MMR, NCR, Bengaluru and Pune accounted for 75% of the new supply, the report said. Prospective buyers, who were adopting a wait and watch policy, are back in the market, said the report.

 

Pune witnessed the highest increase of 214% — 2,200 units to 6,900 units — in new launches in the second quarter. Hyderabad’s stock went up by 109%— from 2,650 units to 5,550 units. Chennai saw 100% hike, from 2,100 units to 4,200 units. In actual numbers, MMR recorded the highest increase — from 8,600 to 13,600. Launch of two large affordable housing projects comprising 1,900 units was the key contributor for Pune’s growth. Hyderabad has gained prominent visibility on the Indian real estate map with its high liveability index. More than 64% of new supply in Chennai was added in the affordable housing segment, the report said. But for a 61% in new launches in Kolkata, the overall performance should have been better.

 

In sales, Bengaluru registered the maximum growth of 27%. Chennai, with 16%, was the lowest in sales growth. Out of 60,800 housing units sold in the second quarter, NCR, MMR, Bengaluru and Pune accounted for 81%. There is a significant improvement in market conditions in the NCR, said Puri.

 

“Developers are working hard on clearing unsold inventory with attractive schemes, freebies and discounts. Moreover, the positive impact of the policy reforms including RERA and GST have begun to bear fruit,” said Puri.

 

Considering the growth in supply and sales in the first half of 2018, the upcoming festive season may be a vibrant one again, more so as more new launches across the major cities would offer buyers a wider spread of options and help control prices, felt Puri.

 

“Affordable housing has kept the market’s momentum going for some time now. If developers remain laser-focused, add only relevant supply and ensure 100% RERA compliance, there could be growth,” said Puri.