The slowdown in residential real estate seems to be now reaching the Southern cities as well. As per a new report, cities of Bengaluru, Hyderabad and Chennai have witnessed 5 percent decline in residential sales in the first three quarters of 2019 against the corresponding period in 2018.
The trio cities seem to be under the grim umbrella of the overall economic slowdown. The maximum drop was seen in Bengaluru with 8 percent dip while Hyderabad clocked 4 percent fall, according to a new report by ANAROCK. However, the story remains different up north.
NCR in the north recorded 15 percent yearly rise in housing sales between January to September 2019. In fact, the western cities of Pune and MMR raced far ahead and clocked in 33 percent jump in sales over the same period, Money Control reported.
The top seven cities have recorded sales of 2,02,200 units in 2019 till September, of which western cities comprised 46 percent overall share while southern region consisted of 30 percent share.
The three southern cities collectively saw residential sales of 61,400 units between January and September 2019 as against 64,420 units sold in the first three quarters of 2018. On the contrary, MMR and Pune, on the contrary, saw the sale of nearly 93,930 units in 2019 against 70,740 units in the corresponding period in 2018.
New launches in the southern cities were also restricted. Both Chennai and Hyderabad recorded yearly drop of 19 percent and 17 percent respectively with former seeing new supply of nearly 9,580 units and the latter approximately 11,050 new units in 2019.
Pune on the other hand saw a whopping 106 percent jump in new residential launches this year. NCR saw new launches rising by 59 percent in a year from 17,230 units in 2018 to 27,390 units this year.
However, good part is that despite declining residential sales and restricted new supply, the southern cities were able to shed unsold stock by 11 percent during the same period while their western counterparts could not do much about it. Hyderabad, which already has the least unsold stock among all top 7 cities in the country, saw further decline by 12 percent.
Pune and MMR saw no major difference in their stock of unsold units.
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