Residential Real Estate Is Showing Resilience Despite Economic Slowdown? Report

Under-construction property
Under-construction property

The economy may be suffering with overall slowdown, but Indian residential real estate is sending out mixed signals. As per a recent report, there has been a 16 percent year-on-year rise in the number of homes sold in the first three quarters of 2019.

Between January to September 2019, about 2.02 lakh housing units worth Rs. 1.54 lakh crore have been sold across the top seven cities. The numbers are indeed encouraging as compared to 1.78 lakh units sold in the same time period last year.

Talking city wise, Mumbai Metropolitan region (MMR) is topping the list with houses worth Rs. 62, 970 crore sold in Jan-Sept 2019. MMR is followed by Bengaluru which saw the sale of houses worth Rs. 28, 160 crore happening in the first three quarters of 2019.

Interestingly, while MMR saw a rise of 33 percent in the overall housing sales value, Bengaluru actually witnessed a dip of 7 percent as compared to sales happened in the same period last year.

Another city to witness the jump in overall housing sales value is Pune. The city saw a good 32 percent jump in houses sold in first three quarters this year with a total of 31, 380 houses sold in the time.

NCR saw a minor jump as well. Homes worth Rs. 24, 860 crore were sold in the three quarters in 2019. Hyderabad saw a slight dip of 2 percent while Chennai witnessed a rise of 13 percent in 2019 as compared to the time period of last year.

The least overall sales value was seen in Chennai where homes worth Rs. 5, 580 crore were sold.

Among the three quarters, it was the third quarter which saw the worst sales. Ban on subvention scheme, prolonged monsoon along with ‘shradhh’ period contributed to the low sales.

There was a 17 percent yearly drop in the value of sold homes across the top 7 cities – from Rs 50,535 crore in the third quarter of 2018 to Rs 42,040 crore in the third quarter of 2019, said Anuj Puri, Chairman – ANAROCK.

More property trends here.

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