Indian Real Estate A Glance At The Movement From 2019 to 2020

Indian Real Estate – A Glance At The Movement From 2019 to 2020

According to a report by the Economic Times, the Indian economy saw a steep decline in the year 2019. However, the Real Estate sector more or less remained stagnant. The report goes on to state that according to Knight Frank, the real estate sector might see a positive growth in the year 2020. Real estate can be a great investment opportunity in the year 2020. 

Quoting from the Economic Times, here’s a quick glance at how the real estate sector performed in 2019:

Mumbai

  • Prices dropped by an average (over a period of 12 months) of 2% in 2019.
  • The average price per square feet was Rs 7,014.
  • Supply increased by an average (over a period of 12 months) of 7% largely owing to new properties being released.
  • Number of new units launched in 2019 increased from 74,363 to 79,810 as compared to 2018.
  • Number of new units sold in 2019 decreased from 31,481 to 27,212 as compared to 2018.

Delhi NCR

  • Prices increased by an average (over a period of 12 months) of 5% in 2019.
  • The average price per square feet was Rs 4,432.
  • Supply increased by an average (over a period of 12 months) of 45% largely owing to new properties being released.
  • Number of new units launched in 2019 increased from 15,819 to 22,905 as compared to 2018.
  • Number of new units sold in 2019 increased from 22,596 to 22,976 as compared to 2018.

Bengaluru

  • Prices increased by an average (over a period of 12 months) of 6% in 2019.
  • The average price per square feet was Rs 4,977.
  • Supply increased by an average (over a period of 12 months) of 23% largely owing to new properties being released.
  • Number of new units launched in 2019 increased from 27,382 to 33,772 as compared to 2018.
  • Number of new units sold in 2019 increased from 17,973 to 19,851 as compared to 2018.

Pune

  • Prices decreased by an average (over a period of 12 months) of 3% in 2019.
  • The average price per square feet was Rs 4,242.
  • Supply increased by an average (over a period of 12 months) of 37% largely owing to new properties being released.
  • Number of new units launched in 2019 increased from 32,684 to 44,660 as compared to 2018.
  • Number of new units sold in 2019 decreased from 17,070 to 15,445 as compared to 2018.

Chennai

  • Prices decreased by an average (over a period of 12 months) of 5% in 2019.
  • The average price per square feet was Rs 4,170.
  • Supply increased by an average (over a period of 12 months) of 1% largely owing to new properties being released.
  • Number of new units launched in 2019 increased from 10,373 to 11,542 as compared to 2018.
  • Number of new units sold in 2019 increased from 7,401 to 7,980 as compared to 2018.

Hyderabad

  • Prices increased by an average (over a period of 12 months) of 10% in 2019.
  • The average price per square feet was Rs 4,500.
  • Supply increased by an average (over a period of 12 months) of 150% largely owing to new properties being released.
  • Number of new units launched in 2019 increased from 5,404 to 13,495 as compared to 2018.
  • Number of new units sold in 2019 increased from 7,278 to 7,933 as compared to 2018.

Kolkata

  • Prices increased by an average (over a period of 12 months) of 3% in 2019.
  • The average price per square feet was Rs 3,359.
  • Supply decreased by an average (over a period of 12 months) of 53%.
  • Number of new units launched in 2019 decreased from 12,015 to 5,654 as compared to 2018.
  • Number of new units sold in 2019 increased from 6,140 to 6,678 as compared to 2018.

Ahmedabad

  • Prices increased by an average (over a period of 12 months) of 2% in 2019.
  • The average price per square feet was Rs 2,896.
  • Supply increased by an average (over a period of 12 months) of 176%.
  • Number of new units launched in 2019 increased from 4,167 to 11,487 as compared to 2018.
  • Number of new units sold in 2019 increased from 8,101 to 8,501 as compared to 2018.

Averaging across India

  • The average price per square feet was Rs 4,170.
  • Supply increased by an average (over a period of 12 months) of 23%.
  • Number of new units launched in 2019 increased from 182,207 to 223,325 as compared to 2018.
  • Number of new units sold in 2019 decreased from 118,040 to 116,576 as compared to 2018.

Here are some things to note about the real estate sector moving in to 2020:

Some markets are set to see an upward movement

2019 did not receive the expected price correction that buyers were looking for. Reports however show that when looking at a 5 year period property prices in most locations, like Hyderabad for instance, moved upward. This trend is expected to continue in 2020.

The number of housing units in the market may increase

RERA has caused builders to focus on project completion rather than on starting new projects, and with the asset fund set up by the government, many new buildings might become available in the market for purchase in 2020.

Real estate market sentiment is improving

The real estate sector is evolving with the growing landscape, with the introduction of modern tools like smart homes, green homes, and also the growth of real estate focused businesses like co-working spaces, etc. This is giving buyers a more reasons to invest in real estate, and the number of sales are likely to increase in 2020. The introduction of RERA is also a factor that is promoting positive sentiments towards real estate.

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