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    Will Indian real estate bounce back in 2020?

    Synopsis

    In 2019, housing afforability showed a marked improvement. We also saw a plethora of launches in the market. In 2020, Knight Frank expects the GDP growth to touch 6-6.5% by next year. It also expects the real estate sector to maintain its momentum.

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    Only Bengaluru registered a healthy growth in sales.
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    Despite the weakness in the economy, real estate remained stable in 2019 and could revive in the new year, says a report by Knight Frank. Housing prices either fell or remained flat. Among the launches which were many, 61% were in the affordable housing segment.

    Now, Knight Frank expects the gross domestic product (GDP) growth to touch 6-6.5% by next year. It also expects the real estate sector to maintain its momentum. Here’s how prices and sales moved in eight top metros in India.

    1. Mumbai
    14-1

    Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): -2
    Avg price per sq ft: Rs 7,014

    But supply increased due to new launches…
    (% change in new launches in past 12 months): 7

    Number of new units launched during the year
    2018: 74,363
    2019: 79,810

    …though sales did not keep pace with supply
    (% change in sales in past 12 months): -5

    Number of new units sold during the year
    2018: 31,481
    2019: 27,212

    2. Delhi NCR
    14-2

    Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): 5
    Avg price per sq ft: Rs 4,432

    But supply increased due to new launches…
    (% change in new launches in past 12 months): 45

    Number of new units launched during the year
    2018: 15,819
    2019: 22,905

    …though sales did not keep pace with supply (% change in sales in past 12 months): 5

    Number of new units sold during the year
    2018: 22,596
    2019: 22,976

    3. Bengaluru
    14-3

    Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): 6
    Avg price per sq ft: Rs 4,977

    But supply increased due to new launches… (% change in new launches in past 12 months): 23

    Number of new units launched during the year
    2018: 27,382
    2019: 33,772

    …though sales did not keep pace with supply (% change in sales in past 12 months): 10

    Number of new units sold during the year
    2018: 17,973
    2019: 19,851

    Only Bengaluru registered a healthy growth in sales

    4. Pune
    14-4

    Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): -3
    Avg price per sq ft: Rs 4,242

    But supply increased due to new launches… (% change in new launches in past 12 months): 37

    Number of new units launched during the year
    2018: 32,684
    2019: 44,660

    …though sales did not keep pace with supply (% change in sales in past 12 months): -2

    Number of new units sold during the year
    2018: 17,070
    2019: 15,445

    5. Chennai
    14-5

    Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): -5
    Avg price per sq ft: Rs 4,170

    But supply increased due to new launches… (% change in new launches in past 12 months): 11

    Number of new units launched during the year
    2018: 10,373
    2019: 11,542

    …though sales did not keep pace with supply (% change in sales in past 12 months): 6

    Number of new units sold during the year
    2018: 7,401
    2019: 7,980

    6. Hyderabad
    14-6

    Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): 10
    Avg price per sq ft: Rs 4,500

    But supply increased due to new launches… (% change in new launches in past 12 months): 150

    Number of new units launched during the year
    2018: 5,404
    2019: 13,495

    …though sales did not keep pace with supply (% change in sales in past 12 months): 4

    Number of new units sold during the year
    2018: 7,278
    2019: 7,933

    Prices in Hyderabad bucked the trend and rose smartly

    7. Kolkata
    14-7

    Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): 3
    Avg price per sq ft: Rs 3,359

    But supply increased due to new launches… (% change in new launches in past 12 months): -53

    Number of new units launched during the year
    2018: 12,015
    2019: 5,654

    …though sales did not keep pace with supply (% change in sales in past 12 months): -12

    Number of new units sold during the year
    2018: 6,140
    2019: 6,678

    Kolkata was the only city to see a dip in new launches.

    8. Ahmedabad
    14-8

    Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): 2
    Avg price per sq ft: Rs 2,896

    But supply increased due to new launches… (% change in new launches in past 12 months): 176

    Number of new units launched during the year
    2018: 4,167
    2019: 11,487

    …though sales did not keep pace with supply (% change in sales in past 12 months): 3

    Number of new units sold during the year
    2018: 8,101
    2019: 8,501

    9. All India
    14-9

    Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): N.A
    Avg price per sq ft: Rs 4,170

    But supply increased due to new launches… (% change in new launches in past 12 months): 23

    Number of new units launched during the year
    2018: 182,207
    2019: 2,23,325

    …though sales did not keep pace with supply (% change in sales in past 12 months): -1

    Number of new units sold during the year
    2018: 1,18,040
    2019: 1,16,576

    The overall growth in sales was flat

    Afforability showed a marked improvement in 2019
    Five of the eight cities are below the Knight Frank Affordability benchmark of 4.5
    14-10
    Figures denote the ratio of average house price to average annual household income in each city.

    The year saw a flurry of new launches
    14-11

    But most launches were concentrated in lower segments
    14-12
    Property price. % of new launches in 2019

    Source: All data is from the India Real Estate 2019 report by Knight Frank India

    (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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    2 Comments on this Story

    Priya Madhuri162 days ago
    Informative Blog
    Vedatraye Developers
    Praker 206 days ago
    paid news.. real estate will collapse.. that is the need of healthy Indian economy of future.
    The Economic Times