A decline in launch activity was visible across all key metro cities — particularly Bengaluru, which saw a sharp decline of 64% YoY in March
Real estate sales across major cities in India clocked sales of 37.3 million square feet in March, taking the total sales in the FY19 to 443m sq ft, an increase of seven percent year-on-year, says a report.
Launches across India declined 43 percent year-on-year in March, amid uncertainty over GST rates as well as liquidity crisis, in turn leading to launches in FY19 declining six percent YoY to 286m sq ft, a report by Kotak Institutional Equities stated.
A decline in launch activity was visible across all key metro cities —particularly Bengaluru, which saw a YoY dip of 64 percent in March.
Declining launches and improving sales momentum have continued to aid inventory drawdown, with all-India inventory declining 11 percent YoY to around 1.23 billion sq ft, it said.
Prices across India increased six percent YoY to Rs 5,260 per sq ft in March, the report said.Sales and launches remain steady in NCR
Sales activity in the National Capital Region (NCR) remained steady in March with sales of 4.3m sq ft (over 28 percent YoY), with major contribution coming from Greater Noida (1.7m sq ft) and Gurugram (1.3m sq ft).
On an annual basis, sales averaged 4.4m sq ft in FY19. Even as launch activity declined in other metros, launches in NCR remained steady at 3.7m sq ft in March against a monthly average of 2.5m sq ft in FY19, the report said.
Net unsold residential inventory in NCR stood at 221m sq ft as of March and is equivalent to 50 months sales (based on the trailing 12 months average). Realisations remained flat year-on-year in March at Rs 5,055 per sq ft despite an increase of four percent.Launches in MMR decline
Launches in MMR declined to 2m sq ft (down 49 percent YoY) in March due to a slowdown in launches in Thane (1.2m sq ft in March as against the monthly average of 2.4m sq ft in FY19) as well as Mumbai (down 35 percent YoY).
Despite weak launches, the report said that sales remained upbeat at 6.7m sq ft (up 17% YoY) in March — an average of 6.8m sq ft seen in FY19.
MMR witnessed the sharpest decline in inventory among all regions, even as outstanding inventory still remains the highest at 272m sq ft as of March (from 303m sq ft YoY). The same is expected to be absorbed in 40 months on the basis of the prevailing past 12-month sales, the report said.Launches slow but highest among metros in Bengaluru
Launches in Bengaluru took a hit in March, declining 64 percent YoY to 1.7m sq ft (against a monthly average of 4.3m sq ft in FY19) even as launches remained the highest across key metros at 51.5m sq ft in FY19, the report said.
Sales moderated at 61m sq ft in March. Unsold inventory at 153m sq ft continues to be the lowest across regions in India. Realisations in March increased three percent YoY to Rs 4,940 per sq ft.The Great Diwali Discount!
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