2.75 Lakh Ready Homes to Hit Top 7 Cities by 2020-End
The top 7 cities may see nearly 2.75 lakh new ready-to-move (RTM) homes over the next one year, provided developers stay on schedule. There are currently 13.1 lakh units, launched between 2014 to Q3 2019, in various stages of construction in the top 7 cities. Nearly 21% are to be delivered by 2020-end. Among the top 7 cities, NCR will see maximum RTM supply with 68,070 units, and Chennai the least at about 10,860 units.
Out of the total projected ready supply:
ANAROCK Property Consultants says, “RERA is gaining stronger ground in most states and many of these projected 2.75 lakh units are likely to be completed on time by December 2020. Delhi-NCR may see some projects delayed by a few months due to the construction ban. Also, developers are keenly aware that ready-to-move homes are in greatest demand and will spare no effort in completing their projects on time.”
“Most buyers are focused on the affordable and mid segments (priced below INR 80 lakh) and will have ample choice once this ready inventory hits the market by the end of next year. A whopping 74% – or approx. 2.04 lakh units – fall in these two segments.”
Of the total 2.75 lakh units to complete by December 2020:
• NCR will see the maximum inventory of nearly 68,070 units, followed by MMR with 56,760 units and Pune with 44,480 units.
• Bangalore, Hyderabad and Chennai will be 37,860, 17,100 units and 10,860 units of ready supply respectively.
• In Kolkata, approx. 15,690 units will be added by the end of 2020.
Affordable Tops the Budget Bands
Homebuyers seeking affordable and mid-segment properties in the top 7 cities will be spoiled for choice with ample ready-to-move-in supply over the next one year. Of the 2.04 lakh ready units priced within INR 80 lakh to hit the top 7 cities over the next one year, 1.13 lakh units will be in the affordable category and over 90,800 units in the mid-segment. Another 44,000 units are in the price budget of INR 80 lakh to INR 1.5 Cr, and over 27,500 units are priced > INR 1.5 Crore.
Affordable RTM Supply – City-wise Trends:
NCR tops the list with 46% of the total 68,070 RTM units to hit this market by 2020 end in the affordable category. 38% will be in the mid-segment and just 3% (2,040 units) in the luxury and ultra-luxury segments.
Pune comes second with 60% of the total 26,690 units to be completed by December 2020 in the affordable segment. 33% (approx. 14,680 units) will be in the mid-segment, about 5% in the INR 80 lakh – 1.5 Crore budget range, and just 2% (approx. 890 units) priced >INR 1.5 Crore.
MMR comes third with a ready affordable inventory of nearly 25,540 units to hit this market over the next one year, followed by 13,620 units in the luxury segments priced >INR 1.5 Crore, 9,080 units priced between INR 80 lakhs – 1.5 Crore, and the least in mid-segment with approx. 8,510 units.
Kolkata will see more ready affordable supply (approx. 9,510 units) over the next year than any of the southern markets – Bangalore, Chennai and Hyderabad. 61% of the city’s total ready supply will be in the affordable budget range, 20% in the mid-segment, 12% in the budget range of INR 80 lakh to INR 1.5 Crore and just 7% in the luxury and ultra-luxury segments combined.
In Bangalore, affordable ready supply will account for just 12% share of the total 37,860 units, while the mid-segment comprises a whopping 48% share, followed by 31% of units priced within INR 80 lakh – 1.5 Crore. Nearly 3,400 units will be priced >INR 1.5 Crore.
Chennai and Hyderabad will collectively see new ready stock of 5,400 units in the affordable category. Interestingly, Hyderabad will see most its supply (approx. 6,670 units) in the budget range of INR 80 Lakh – 1.5 Crore, followed by 5,470 units in mid-segment and 3,250 units in luxury & ultra-luxury category.