Will Indian real estate bounce back in 2020?

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Despite the weakness in the economy, real estate remained stable in 2019 and could revive in the new year, says a report by Knight Frank. Housing prices either fell or remained flat. Among the launches which were many, 61% were in the affordable housing segment.

Now, Knight Frank expects the gross domestic product (GDP) growth to touch 6-6.5% by next year. It also expects the real estate sector to maintain its momentum. Here’s how prices and sales moved in eight top metros in India.

1. Mumbai

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Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): -2
Avg price per sq ft: Rs 7,014

But supply increased due to new launches…
 (% change in new launches in past 12 months): 7

Number of new units launched during the year
2018: 74,363
2019: 79,810


…though sales did not keep pace with supply
 (% change in sales in past 12 months): -5

Number of new units sold during the year
2018: 31,481
2019: 27,212

2. Delhi NCR

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Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): 5
Avg price per sq ft: Rs 4,432

But supply increased due to new launches…
 (% change in new launches in past 12 months): 45

Number of new units launched during the year
2018: 15,819
2019: 22,905

…though sales did not keep pace with supply (% change in sales in past 12 months): 5

Number of new units sold during the year
2018: 22,596
2019: 22,976

3. Bengaluru

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Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): 6
Avg price per sq ft: Rs 4,977

But supply increased due to new launches… (% change in new launches in past 12 months): 23

Number of new units launched during the year
2018: 27,382
2019: 33,772

…though sales did not keep pace with supply (% change in sales in past 12 months): 10

Number of new units sold during the year
2018: 17,973
2019: 19,851

Only Bengaluru registered a healthy growth in sales

4. Pune

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Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): -3
Avg price per sq ft: Rs 4,242

But supply increased due to new launches… (% change in new launches in past 12 months): 37

Number of new units launched during the year
2018: 32,684
2019: 44,660

…though sales did not keep pace with supply (% change in sales in past 12 months): -2

Number of new units sold during the year
2018: 17,070
2019: 15,445

5. Chennai

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Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): -5
Avg price per sq ft: Rs 4,170

But supply increased due to new launches… (% change in new launches in past 12 months): 11

Number of new units launched during the year
2018: 10,373
2019: 11,542

…though sales did not keep pace with supply (% change in sales in past 12 months): 6

Number of new units sold during the year
2018: 7,401
2019: 7,980

6. Hyderabad

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Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): 10
Avg price per sq ft: Rs 4,500

But supply increased due to new launches… (% change in new launches in past 12 months): 150

Number of new units launched during the year
2018: 5,404
2019: 13,495

…though sales did not keep pace with supply (% change in sales in past 12 months): 4

Number of new units sold during the year
2018: 7,278
2019: 7,933

Prices in Hyderabad bucked the trend and rose smartly

7. Kolkata

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Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): 3
Avg price per sq ft: Rs 3,359

But supply increased due to new launches… (% change in new launches in past 12 months): -53

Number of new units launched during the year
2018: 12,015
2019: 5,654

…though sales did not keep pace with supply (% change in sales in past 12 months): -12

Number of new units sold during the year
2018: 6,140
2019: 6,678

Kolkata was the only city to see a dip in new launches.

8. Ahmedabad

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Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): 2
Avg price per sq ft: Rs 2,896

But supply increased due to new launches… (% change in new launches in past 12 months): 176

Number of new units launched during the year
2018: 4,167
2019: 11,487

…though sales did not keep pace with supply (% change in sales in past 12 months): 3

Number of new units sold during the year
2018: 8,101
2019: 8,501

9. All India

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Prices dropped or remained flat in 2019 (% change in avg price in past 12 months): N.A
Avg price per sq ft: Rs 4,170

But supply increased due to new launches… (% change in new launches in past 12 months): 23

Number of new units launched during the year
2018: 182,207
2019: 2,23,325

…though sales did not keep pace with supply (% change in sales in past 12 months): -1

Number of new units sold during the year
2018: 1,18,040
2019: 1,16,576

The overall growth in sales was flat

Afforability showed a marked improvement in 2019
Five of the eight cities are below the Knight Frank Affordability benchmark of 4.5

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Figures denote the ratio of average house price to average annual household income in each city.

The year saw a flurry of new launches

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But most launches were concentrated in lower segments

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Property price. % of new launches in 2019

Source: All data is from the India Real Estate 2019 report by Knight Frank India

[“source=economictimes”]