Unsold Inventory Hits Two-year Low in Q4 2018 - ANAROCK

/ -- Significant drop from 47 months of inventory overhang in Q4 2017
NCR still constitutes 52 months' inventory overhang; Bengaluru & Hyderabad at all-time low of 17 months each
Sales exceed number of units launched second year in a row
Avg. property sizes across top 7 cities shrinks by 8% compared to 2017 & 19% since 2016
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"However, the issue of stalled projects and liquidity crisis continued to confound the housing sector in 2018, though it continued its transition into a relatively more transparent and end-user driven market. End-users accelerated growth while investors shifted focus towards alternate asset classes such as commercial, retail and warehousing, which did fairly well during the year."

"Builders very extremely cautious about launching projects to align supply with the existing buyer demand. This helped sales pick up momentum in 2018. Simultaneously, builders reduced the average property sizes to align their offerings with the highly-incentivized affordable housing bracket. The affordable segment spearheaded residential growth in 2018."

2018 New Launch Tracker
City-wise Supply (In Units) and Y-o-Y & Q-o-Q percentage change
%Change
%Change (2017
Q4
Q4
(Q4 17 Vs
Cities Name
2018
2017
Vs 2018)
2018
2017
Q4 2018)
NCR
26,010
22,180
17%
8,800
3,770
133%
MMR
59,930
53,700
12%
16,590
12,050
38%
Bengaluru
34,880
18,290
91%
11,610
3,510

231%
Pune
24,430
18,950
29%
6,730
2,720
148%
Hyderabad
17,290
12,110
43%
3,940
3,700
7%
Chennai
15,680
7,940
98%
3,900
970
301%
Kolkata
17,080
13,700
25%
4,030
1,660
145%
Total
1,95,300
1,46,870
33%
55,600
28,380
96%
Source: ANAROCK Research
2018 Housing Sales Tracker
Bengaluru recorded the highest jump in sales in 2018 as compared to other top cities. City sales increased by 33% - from 43,130 units in 2017 to 57,540 units in 2018 due to buoyant commercial activity and realistic property prices dictated by end-users. NCR housing sales increased by 18% - from 37,610 units in 2017 to 44,300 units in 2018. Despite rising sales, the region continues to grapple with the issue of stalled/delayed projects. Pune sales rose by 12% - from 30,730 units in 2017 to 34,460 units in 2018. MMR sales rose by 17% - from 56,970 units in 2017 to 66,440 units in 2018 - the highest number of units sold in 2018. Chennai sales declined by 17% over the previous year and was recorded at 11,340 units in 2018. Hyderabad sales significantly increased by 16% over the previous year with 18,630 units sold in 2018. Kolkata saw approx. 15,600 units sold - a yearly increase by 21% over 2017

City-wise Absorption (In Units) and Y-o-Y & Q-o-Q percentage change
% Change
% Change
(2017 Vs
(Q4 17 vs
Cities Name
2018
2017
2018)
Q4-2018
Q4-2017
Q4 18)
NCR
44,300
37,610
18%
12,730
8,200
55%
MMR
66,440
56,970
17%
20,220
12,460
62%
Bangalore
57,540
43,130
33%
14,820
10,250
45%
Pune
34,460
30,730
12%
9,940
6,310
57%
Hyderabad
18,630
16,110
16%
4,990
3,920
27%
Chennai
11,340
13,680
-17%
3,290
2,600
26%
Kolkata
15,600
12,900
21%
3,860
2,400
61%
Total 2,48,310
2,11,130
18%
69,850
46,140
51%
Source: ANAROCK Research
Overall Unsold Inventory till Q4 2018
City-Wise Unsold Inventory (In Units) and Q-o-Q percentage change

Cities Name
Q4-2018
Q4-2017
% Change (Q4 17 Vs Q4 2018)
NCR
1,86,714
2,05,000
-9%
MMR
2,19,491
2,26,006
-3%
Bangalore
73,337
96,000
-24%
Pune
87,403
97,424
-10%
Hyderabad
25,956
27,289
-5%
Chennai
30,837
26,499
16%
Kolkata
49,471
48,000
3%
Total
6,73,208
7,26,218
-7%
Source: ANAROCK Research
Price Movement
City-Level Price Trend (INR/Sqft)
Cities Name
Q4 2018
Q4 2017
% Change (Q4 17 Vs Q4 2018)
NCR
4,565
4,520
1%
MMR
10,550
10,337
2%
Bangalore
4,925
4,810
2%
Pune
5,480
5,410
1%
Hyderabad
4,150
4,100
1%
Chennai
4,900
4,955
-1%
Kolkata
4,375
4,430
0%
Pan-India
5,564
5,509
0.01%
Source: ANAROCK Research

Outlook 2019
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