The Insite Report by 99acres.com captures the quarterly capital trends and the annual rental analysis of residential apartments in key real estate markets – Delhi NCR, Mumbai Metropolitan Region (MMR), Bangalore, Pune, Chennai, Hyderabad, Kolkata and Ahmedabad. In order to assess the prevailing sentiment, the report delves deep into demand and supply of properties across varied budget segments and occupancy stages. While demand is a function of queries received, supply is based on property listings posted on 99acres.com in Apr-Jun 2019.
HOME BUYING SENTIMENT
Reduced GST rates coupled with stabilised property prices across metros kept home buying sentiment buoyant in Apr-Jun 2019. Low-cost housing units ruled the roost and properties priced within Rs 50 lakh posted maximum enquiries and sales conversion. Demand for under-construction units improved as States undertook stringent actions under RERA.
Average weighted property prices remained under pressure despite improvement in sales volume. Barring Hyderabad and Bangalore, which reported a marginal one percent uptick in property prices, each, all metros saw prices maintaining status quo, QoQ. The market remained marred by the uncertainty posed by the ongoing General Elections and piling housing stock.
For yet another quarter, the rental market continued to benefit due to the cautious buyer stance. With a four percent hike in average rentals, YoY, the IT/ITeS-driven cities – Pune and Hyderabad, emerged as the top performers on the rental graph. Other cities averaged at a 2-3 percent uptick in rental ‘asks’ in Apr-Jun 2019 vis-à-vis the same quarter last year.
General Elections, liquidity crunch following the NBFC crisis and ambiguities pertaining to Input Tax Credit (ITC) under the revised GST regime kept new supply under stress. Developers’ focus on offloading existing stock led to a reduction in the total saleable stock across cities. The average time to offload residential inventory, as in Apr-Jun 2019, stands at around 30 months.