The sale of housing units has declined in seven cities across India in the first quarter of 2019 from the same period last year owing to the economic slowdown and liquidity crisis among customers, says a report by a private firm that analyses real estate data and markets.
According to PropEquity, in Chennai, the sale of new launches decreased by 32 per cent to 2,862 units. A decrease in new launches also led to a decrease in unsold stock by 10 per cent, to 38,418 units in the first quarter of the year 2019.
The report indicated there was a huge demand for housing units in areas such as GST Road, Guduvancheri, Padur, Porur and Perumbakkam, given that the locations are situated near IT parks in Chennai. Further, housing projects in these locations were observed to have good amenities for residents.
The report further explained that with the fall in sales, the rate of absorption of housing units across Chennai had risen by 32 per cent this year to 4,108 units, with projects along GST Road having had an absorption rate of 17.92 per cent.
Going by the demand statistics, residents in Chennai are willing to purchase and invest in housing projects that are ready to be occupied or are nearing completion, as opposed to new projects, since the landscape of the real estate market is constantly changing and correcting itself.
As far as pricing is concerned, the weighted average available price of a house this year was estimated at Rs. 4,729 per square feet.
The report indicated that close to 34,000 units have been committed for delivery in 2019, with buyers in the mid-segment expected to receive the lion’s share of units. As per the report, the launch of new housing projects in 2019 had catered to buyers in the mid-segment, who made up 41 per cent, followed by buyers in the affordable segment at 33 per cent, and the luxury segment at 26 per cent.
The report concluded that the launch of housing projects, which had been put on hold during the Lok Sobha elections earlier this year, will have a boost by the end of the year.
The other six cities the report looked at were Bangalore, Mumbai, Delhi, Kolkata, Hyderabad, and Noida.