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 Jul-Sep 2019.
HOME BUYING SENTIMENT
Home buying sentiment remained weak due to developer defaults and the NBFC crisis, which dried up funding and slowed the completion of already delayed projects. Around 5.6 lakh residential projects are reportedly stalled across the country. Developers, nevertheless, anticipate the festive season to lift housing demand up.
Metro cities witnessed marginal upticks in property prices. Hyderabad and Ahmedabad took lead with a two percent surge, QoQ. A few good deals in certain popular housing hubs contributed to the said price hike. The industry does not foresee any major deviations in the prices of new or ready residential stock in the ensuing quarters, too.
Rental ‘asks’ grew by an average of 2-3 percent across metros, YoY. The segment is expected to benefit from the prolonged caution exercised by homebuyers. Rental hubs along transit corridors are expected to see better demand and surging ‘rates’ in the next couple of quarters. Co-living is fast emerging as a trend, especially in Bangalore, Hyderabad and Mumbai.
Metro cities witnessed the launch of around 486 projects in Jul-Sep 2019, a 33 percent dip versus Apr-Jun 2019. Economic slowdown and liquidity crunch forced builders to hold back new launches. Government’s efforts to boost the Public Sector Banks and NBFCs by injecting funds worth Rs 1 lakh crore may propel housing supply in the forthcoming quarters.