India's residential real estate market report for 2017 by Knight Frank looks at 8 major cities - Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR & Pune.
TOP 8 CITIES: Sales volumes down by 38% in 2017 since reaching its peak in 2011. | New launches decline by a whopping 78% in 2017 since 2010. | Delhi-NCR, the most affected market, with annual supply volume at only 7% of all-time high.
NEW LAUNCHES DROP BELOW SALES: Second-half of 2017 saw new launches drop below sales for the first time in a decade. 40,832 units launched between July–December 2017, down 41% Y-O-Y | Sales at 1,07,316 units, down only 2% Y-O-Y
UNSOLD INVENTORY SHRINKS: Unsold Inventory shrunk by 19% to 5.28 Lakhs Y-O-Y | Unsold inventory was at its peak of 7.2 lakh units in 2014.
MUMBAI: Sees maximum sales and new launches in 2017. However, units sold are 3 times more than new apartments launched. | Number of new units sold was 62,256 and new launches was 23,253.
BENGALURU: Bengaluru witnessed the maximum fall in sales in 2017 at 34,546 units sold. Yet, the sales in 2017, exceed the new supply of 22,410 units.
HYDERABAD: The city witnessed a drop of 70% in New Launches in 2017. Only 3511 new units were launched in the entire year.
RESIDENTIAL UNSOLD INVENTORY (2017 versus 2016): Highest in Delhi-NCR at 1.67 lakh units, down by 13% | In Mumbai it shrunk by 25% at 1.16 lakh units | In Bengaluru it was down by 10% at a little over 1 lakh | In Pune it stood at 28,455 which was down by almost half or 43%.
PROPERTY PRICES ACROSS 8 KEY CITIES: Average property prices fell by 3% across cities | Pune sees the most decline at 7% year-on-year | Mumbai residential prices crack by 5% in 2017 | Hyderabad and Ahmedabad buck the trend - see prices move up 3% and 2% respectively
KEY HIGHLIGHTS: New launches falling below sales is a healthy sign of reducing demand–supply gap | Unit sizes are reducing across all 8 cities, to keep prices affordable | Effects of demonetisation tapering off | PMAY yet to make any significant market impact
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