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223,325 home units launched in 2019, highest in Mumbai: Report

IBEF:  January 08, 2020

According to a report by Knight Frank India, a real estate consulting firm, the home launches in eight cities increased by 23 per cent with the total reaching 223,325 units. Out of the total unit, 112,150 units were launched in second half of 2019.

The report titled, 'India Real Estate: H2 2019', stated that the highest number of homes launches were in Mumbai at 79,810 units, followed by Pune at 44,660 units, and Bengaluru at 33,772 units in 2019.

In 2019, home launches witnessed a year on year growth of 45 per cent in 2019 in the National Capital Region (NCR).

"Weighted average prices remain unmoved in 2019, signalling the price resistance in the market. Developers have also taken cognisance of the slow sales velocity and are keeping a lid on any upward increase in prices," said Mr Mudassir Zaidi, Executive Director-North, Knight Frank India.
He added that ready-to-move-in properties were most sought after in the current market scenario.

The focus of the developers was on affordable housing and lower ticket sizes, thus, about 61 per cent of launches in H2 2019 were in ticket size under Rs 50 lakh (US$ 71,540) and 81 per cent under Rs 1 crore (US$ 0.14 million).

The report further stated that in 2019, office leasing reached a historic high of 60.6 msf registering a 27 per cent year on year growth over 2018, irrespective of the ongoing slowdown in the economy. 

Bengaluru has dominated the decade in terms of transaction volumes and witnessed the highest volume of office space leased again in 2019 at 15.3 msf, followed by Hyderabad at 12.8 msf, nearly twice its previous annual high.

Around 41 per cent of the total office space leased in H2 2019 was accounted by the IT sector, against 31 per cent in H2 2018, whereas the share of Banking, Financial Services and Insurance (BFSI) reduced to 16 per cent in H2 2019, from 18 per cent in H2 2018 due to NBFC crisis.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.