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 Oct-Dec 2019.
HOME BUYING SENTIMENT
Homebuyers continued with their wait-and-watch strategy as the economy failed to pick-up the pace. Alternative Investment Funds worth Rs 25,000 crore cheered the stakeholders of stuck residential projects, but failed to push transactions in the short-term. Property sales plummeted by 20 percent, QoQ, and stood at 55,000 units in Oct-Dec 2019.
Delhi NCR, Mumbai, Pune and Chennai did not witness any major deviations in average property ‘asks’, QoQ. Bangalore, Hyderabad, Kolkata and Ahmedabad witnessed prices going up by a marginal one percent. With an unsold stock of 6.55 lakh units across the top eight metro cities, any significant jump in prices is unlikely in the short-term.
Amid subdued home buying sentiment, the rental landscape registered notable growth, YoY. All metros, barring Delhi NCR and Pune, reported an annual uptick of three percent each in rental ‘asks’. While overweighing ready inventory restricted rental growth to two percent in Delhi NCR, the booming IT industry pushed rentals by four percent in Pune, YoY.
Muted sales and the ongoing NBFC crisis forced developers to refrain from launching new residential projects. Delhi NCR, Mumbai, Bangalore, Chennai and Kolkata reported a decline of 20-30 percent in new project additions, QoQ. An inventory of 4.58 lakh stalled units, too, encouraged developers to restrict new launches.