Maharashtra and Delhi NCR saw a significant decline in new launches of residential units owing to a slowdown in the real estate sector, a survey said. According to the survey by data analytics firm PropEquity, cities like Mumbai, Thane, Pune, Gurgaon and Noida saw a sharp decline in new launches as compared to third quarter of 2018 as well as second quarter of 2019.
As against this, Hyderabad, Kolkata, Bengaluru and Chennai witnessed a reverse trend with the number of launches increasing significantly as compared to second quarter of 2019. "Gurugram witnessed almost negligible new launches of 80 units in one project and there were no new launches in Noida; Pune, Mumbai and Thane saw an addition of 6,341, 1,862 and 4,490 units, respectively. This represented a decline of 44 per cent each in Mumbai and Pune; and 49 per cent in Thane on year-on-year basis," the report said.
Similarly, a drop of 58 per cent in supply was also witnessed in Mumbai and Thane on quarter-on-quarter basis. Pune also witnessed a considerable drop of 46 per cent in the new launches when compared to the last quarter. In Hyderabad, there were around 4,700 units launched in third quarter which was approximately 1.3 times the launches in the previous quarter. The supply also increased by 22 per cent on year-on-year basis.
Similarly, Bengaluru witnessed new launches of 9,500 units in this quarter which increased by 41 per cent and 1 per cent on quarter-on-quarter and year-on-year basis, respectively. Chennai, with an addition of 2,749 units also witnessed an increase of 10 per cent and 8 per cent in new launches on quarterly and yearly basis, respectively.
"Real estate sector in India is witnessing an interesting trend where south India is doing significantly better than the rest of India. The new launches are showing diver-gently opposite trends in the comparison as rest of India is falling behind due to oversupply and south is doing better due to lesser over supply and demand from the IT sector," PropEquity Founder and MD Samir Jasuja said.
With 3,069 units, Kolkata also witnessed a reviving trend in terms of new launches with a significant increase of nearly 62 per cent as compared to the last quarter.
"While the new launches demonstrated a mixed trend throughout the country, the sales declined in almost all the cities in the third quarter," the report noted. Pune and Thane witnessed maximum absorption of around 14,500 and 10,500 units. However, there was a decline of 8 per cent and 12 per cent on quarter-on-quarter basis in these two cities.
"The demand in Chennai dropped by almost 23 per cent and 25 per cent on quarter-on-quarter and year-on-year basis, respectively. The demand was most stable in Bengaluru with a nominal 3 per cent drop as compared to the last quarter. Least absorption in terms of number of units was witnessed in Noida and Gurugram which can be attributed to negligible new launches in these cities during the quarter," it said.