Results of 1Q 2018 for Real Estate

In a latest research, the New Year 2018 has started with the positive note that residential unit launches making a comeback and recording a 27% increase in first quarter of 2018 from the previous year quarter across top seven cities of India. With policy reforms and structural changes now in place, developers are intent on making up for the lost ground.

In in first quarter of 2018 , sales across top 7 cities of India also rose by 12% compared to last year quarter 2017, showing that serious flat buyers are back in the market, because of  new environment of transparency , accountability and financial stability RERA or GST applied in real estate sector.

The policy reforms and structural changes have transformed the way Indian real estate sector. This has been a definite blessing. Now market has turned end-user friendly and in 2018 is bringing new projects launches that match demand. New projects are more costumer focus.

First quarter of 2018 New Launch

•  Top Seven cities recorded new unit launches of around 33,300 units in Q1 2018 as opposed to 26,300 units in Q4 2017.
• Main cities contributing to Q1 2018 new unit launches included MMR (Mumbai Metropolitan Region), Bengaluru and Kolkata, altogether accounting for sixty-six percentage of addition.
• Approx 6,500 units were launched in Kolkata – a massive rise of over 300%from Q4 2017. A large affordable housing project approx 3,500 units was a key contributor to the rise in new units hitting the market in the quarter.
• The Bengaluru added 6,800 units in first quarter of 2018, a massive quarterly increase of 127%. This city has always adapted rapidly to changing market very fast and it’s positioned particularly well for future growth.
• MMR was a key contributor to new launches in Q1 2018, the city’s new launches recorded a drop of 25% from the previous quarter with 8,600 units. The previously intensely investor-driven city is now finally aligning itself to the changing market scenario with 87% unit additions in the sub-INR 1.5 crore price range.
• The Chennai added 2,100 units in Q1 2018 compared to only 1,000 units in last quarter 2017 – a  rise of 110%.Political stability and elimination of input material issues, the city real estate sector seems to be back in action.
• Delhi NCR‘s contribution was 14% with 4,500 units, an 18% increase from the previous year quarter. This region is also reorienting itself to actual housing demand, with 94% unit additions in the sub-INR 1.5 crore price range.
• The Pune‘s contribution was 7% with 2,200 units. Developers in this historically stable market are carefully calibrating the supply to avoid creating a serious demand-supply mismatch

More clarity on the back of faster clearances and approvals, new launches surged in first quarter of 2018.There is an undeniable need to focus on executions to avoid penalization under RERA, timely new launches are also critical so that the secured approvals do not lapse. In terms of launches, 2018 has certainly commenced on a strong note. If costumers demand picks up faster, than we may witness a consummate increase in new launches as well in this year.