By Ankit Kansal, Founder and MD of 360 Realtors
FY 2019-20 could be the year that the industry was waiting for a long time. After a slowdown in recent times, finally, Indian Real Estate has started gaining steam. Positivity & resurgence are once again recurring themes all around India. This has been further confirmed by latest research compiled by 360 Realtors about the Q1 FY 2019-20. On the back of increased demand, transaction volumes are picking up notably in major Indian cities.
Pune has shown one of the biggest jumps in the transaction volume. Total quarterly uptake in Pune is estimated at slightly less than 16,000, remarkably jumping by over 40% on a Q/Q basis. Pune’s phenomenal performance is rooted in a host of factors. As a booming IT & manufacturing industry, Pune is seeing a spurt in demand in the affordable (~ INR 40 lacs) & mid-income segments (INR 40-80 lacs). Its monumental growth in demand is further dovetailed by upcoming urban corridors such as Hinjewadi, Wagholi, Chakan & Viman Nagar, etc. These new locations have a host good quality Grade-A units in viable price options. Pune is also ahead of its peers when it comes to pushing its Smart City agenda. The city is investing in infrastructure at an unprecedented pace to build better roadways, water supply, transport networks, electricity supply, sewage plants & sporting complexes, etc.
Other IT-centric markets such as Hyderabad & Bangalore are showcasing significant rise in quarterly transaction volume- 17 & 9% respectively. New corridors such as HITEC city & Gachibowli are witnessing a constant rise in demand in Hyderabad. Hyderabad’s expansive IT industry in conjunction with infrastructure growth will continue to fuel more demand. In the Silicon Valley of India, upcoming micro-markets such as Whitefield, Devanahalli, Kanakapura Road, Sarjapura Road is driving demand.
Other major markets such as Delhi-NCR & Mumbai Metropolitan Region (MMR) are reeling under the pressure of high unsold inventories. However, despite high inventory, transaction volumes have inched up stemmed by strong fundamentals. The markets are consolidating. Small developers are drying up giving way to bigger developers with deep pockets, which will add more organization & sustainability in the longer run.
In Delhi-NCR, developers continue to give attractive discount offers to boost demand dynamics. In MMR as well affordability is the concurrent theme. As buyers are pivoting from high-ticket size units to relatively affordable units (INR 75 lacs – 1.5 Cr), developers are also focusing on the sweet spots & coming up with new launches in the Western & Central Suburbs (Andheri, Powai, Chembur, etc.).
Prices in most of the major markets are nearly stable, due to the limited presence of investors. Average prices in Bangalore & Delhi-NCR are stable, whereas in Pune it has inched up marginally by 0.3% when compared to a quarter before. Average prices have dipped in MMR due to the rising preference for affordable properties. In Hyderabad, the trends are defying the aggregate price movement, as average prices have moved up considerably by around 4.1% quarterly- revealed by 360 Realtors’ research. Apart from end-users, investors are deepening their foothold in Hyderabad, drawn by the rise in prices.
Overall the industry is standing at an interesting juncture, driven by a surge in positivity along with transparency & organization. In the recent budget, the government has taken some prudent steps to boost infrastructure & enhance liquidity in the market. In the mid-long terms, such steps will further influence the industry in a positive way.
Corporate Comm India (CCI Newswire)
