Increase in housing launches in Bengaluru, Mumbai and Delhi-NCR
Implementation of regulatory reforms such as RERA and GST has had a positive impact on the residential market with the top three cities of Bengaluru, Mumbai and Delhi-NCR showing signs of recovery in 2018. While Bengaluru and Mumbai recorded 81 percent and 22 percent annual growth respectively. Delhi NCR led with 71 percent year-on-year growth in sales, says a new report.
There has been a rise in the number of launches across Delhi NCR, Mumbai, and Bengaluru in 2018 compared to 2017. According to JLL Research, Delhi-NCR witnessed 114 percent year-on-year growth in new launches at 17,660 units, which is the highest among the three markets. While Bengaluru recorded annual growth of 81 percent at 37,286 units, Mumbai’s housing market saw a healthy 22 percent rise in launches.
While new launches across these three key metros recorded strong growth, positive consumer sentiment in the post-reforms regime has resulted in higher sales. In percentage terms, Delhi-NCR topped with 71 percent y-o-y growth in sales at 24,725 units. However, the jump in sales was due to low base effect.
While sales in the first half of 2018 continued to be slow in Bengaluru, it picked up significant momentum in the latter part of the year, expanding at 17 percent on an annual basis. Post a consistent drop in sales since 2016, the offtake of residential units in Mumbai revived and grew at 10 percent during 2018.