Bucking the larger trend of subdued launches across the country, major markets in South India witnessed an increase in the launches of new residential properties during July-September quarter, a PropEquity report said on Thursday.
"The residential real estate of India reflected an interesting trend in the third quarter where the southern cities like Hyderabad, Bengaluru and Chennai witnessed an increase in the new launches as compared to the previous quarter," it said.
In Hyderabad, around 4,700 residential units were launched during the period under review which the report said is around 1.3 times the launches in the previous quarter. The supply also increased by 22% on a year-on-year (YoY) basis.
Similarly, Bengaluru has witnessed new launches of around 9,500 units in the quarter with an increase of 41% and 1% on a sequential and YoY basis. Chennai also witnessed an increase of 10% and 8% in new launches on quarterly and yearly basis, respectively.
Kolkata has also witnessed a reviving trend in terms of new launches with a significant increase of approximately 62% as compared to the last quarter, the report said.
"Real estate sector in India is witnessing an interesting trend where South of India is doing significantly better than the rest of India. The new launches are showing divergently 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," Samir Jasuja, Founder and MD at PropEquity said.
Compared to the rise in supply in the South, the National Capital Region (NCR), Mumbai Metropolitan Region (MMR) and Pune reflected an immense dip in supply in the third quarter.
"Gurugram witnessed almost negligible new launches of 80 units in one project and there were no new launches in Noida. Similarly, a drop of 58% in supply was also witnessed in Mumbai and Thane on QoQ basis. Pune also witnessed a considerable drop of 46% in the new launches when compared to the last quarter," the report said.
It showed that while the new launches demonstrated a mixed trend throughout the country, the sales declined in almost all the cities in the third quarter. Pune and Thane witnessed maximum absorption of approximately 14,500 and 10,500 units.
However, there was a decline of around 8% and 12% on a quarterly basis in these two cities. The demand in Chennai dropped by almost 23% and 25% on QoQ and YoY basis respectively.
The demand was most stable in Bengaluru with a nominal 3% 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.