With a total of 223,253 units launched, housing launch in eight cities grew by 23% in 2019. Of them, 112,150 units in total were launched in the second half of 2019, according to the Knight Frank India report, a real estate consultancy firm.
The report, entitled “India Real Estate: H2 2019”, stated home launches in Mumbai were highest in 2019 with 79,810 units, followed by Pune with 44,660 units and Bengaluru with 33,772 units.
In the National Capital Region (NCR), home launches grew by 45% year on year in 2019.
Also Read: Home sales in Delhi-NCR rose by 45% in 2019: report
“The weighted average prices did not move in 2019, indicating price resistance in the market,” Mudassir Zaidi said. “The developers have also taken into account slow sales speed and search for any price increase”, ED (Executive Director) of North, Knight Frank India
He added that demand for already constructed real estate properties were most in-demand in the current market scenario.
About 61 percent of launches in the second half of 2019 occurred on tickets valued at less than $ 5 million (50 lakh) and 81 percent of $ 10 million (Rs 1 crore), as developers focused on affordable housing and low ticket volumes.
Office Lease
The report also added that in 2019, the office lease contract reached an all-time high of 60.6 msf despite the current slowdown in the economy, with an annual growth rate of 27% in 2018.
Bengaluru, which dominated this contract in terms of transaction volume, saw the largest volume of office space rented again in 2019 at 15.3 msf, followed by Hyderabad at 12.8 msf, almost double the previous annual high.
The IT sector accounted for 41 percent of the total leased office space in the second half of 2019, compared to 31 percent in the second half of 2018, while the participation of banks, financial services and insurance (BFSI) decreased to 16 percent in the second half of 2019, from 18 Percent in H2 2018 due to the NBFC crisis.
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