The Indian real estate sector has witnessed a massive jump in the housing sector during the second quarter of the year 2018. According to a report, a 50 percent increase has been recorded in the 2018 Q2 particularly due to the sales in the residential sector under Affordable Housing segment.
The sale of residential units in seven major cities of India including the National Capital Region [NCR], Mumbai Metropolitan Region [MMR], Chennai, Bengaluru, Pune, Kolkata and Hyderabad recorded an increase by 24 percent in comparison to the First Quarter of 2018. This hints that the aspiring home buyers are getting back to the property market as the reforms like RERA and GST have created a trustworthy scenario amongst the homebuyers. This interest by the prospects is a positive sign for the Indian real estate.
All the top major cities had the launch of new residential projects that comprises of nearly 50,100 units in Q2 2018 which is more than 16,000 in comparison to the Q1 2018. These new housing units of the top seven cities add upto 75% new supply.
It is estimated that nearly 6,900 units were launched in Pune out of which two large-sized affordable housing projects comprising of 1900 units are the major contributors to this increase in the Second quarter of 2018. On the other hand, the Hyderabad city added 5,550 units in Q2 2018 which is a 109% more in comparison to that of the first quarter of 2018. Following Hyderabad is Chennai with new supply piling up twice to 4,200 housing units in Q2 2018 which was 2,100 units in Q1 2018. More than 64% of the new supply was added in the affordable segment.
The National Capital Region added 17 % new supply with 8,500 housing units that took the growth percentage up by 89 percent in comparison to the last quarter out of which 54 percent was from the affordable housing segment.
The Mumbai Metropolitan Region [MMR] recorded maximum supply of housing units with nearly 13,600 units in Q2 2018, which gave a phenomenal increase of 58 percent over the previous quarter. The IT City, Bengaluru added 8,800 units in the second quarter of 2018 and recorded an increase in sales by 28 percent. Kolkata’s new launches recorded a drop of 61 percent from the previous quarter, with approximately 2,550 units.