Despite a slowdown in the economic, housing sales witnessed a marginal rise 2019 across eight major cities to nearly 2.46 lakh units, according to property consultant Knight Frank.
Releasing its latest report, India Real Estate: H2 2019, Knight Frank said that "despite headwinds of economic slowdown, Indian real estate sector has recorded an overall growth in 2019."
The residential property market in top eight cities recorded a growth of 1 per cent year-on-year (YoY) in sales volume in 2019.
Total sales volume was recorded at 2,45,861 units in 2019 over 2,42,328 in 2018 as affordability improved, and developers aligned themselves with the needs of homebuyers by reducing ticket-sizes and unit-sizes in a bid to encourage sales, the consultant said.
"Housing market grew last year beating all odds," Knight Frank India Executive Director ( Valuation and Advisory, Retail and Hospitality) Ghulam Zia told reporters.
Housing sales increased in Delhi-NCR, Bengaluru, Chennai, Hyderabad and Ahmedabad, but dropped in Mumbai, Pune and Kolkata.
According to the report, Bengaluru saw maximum rise in housing sales of 10 per cent at 48,076 units.
Housing sales in Chennai increased by 6 per cent to 16,959 units, while the national capital region saw 5 per cent rise at 42,828 units.
"Steady sales volumes is a positive sign for the reeling NCR residential market," said Muddasir Zaidi, Executive Director (North) Knight Frank India.
Average housing prices rose by 4-5 per cent last year, but it is still lower than 2015 level, Zaidi added.
Hyderabad witnessed 4 per cent rise in sales to 16,267 units and Ahmedabad reported 3 per cent increase at 16,713 units.
However, Kolkata saw a decline of 12 per cent in housing sales at 11,266 units.
Housing sales in Mumbai and Pune fell by 5 per cent and 2 per cent, respectively. Sales of apartments stood at 60,943 units in the financial capital and 32,809 units in Pune.
New residential unit launches rose by 23 per cent YoY in 2019 to be recorded at 2,23,325 units.
In the office segment, leasing of space rose by 27 per cent to touch record 60.6 million square feet (msf), backed by a surge in leasing activity by the information technology sector. New supply of office space surged by 56 per cent in 2019 and was recorded at 61.3 msf.
Shishir Baijal, Chairman and Managing Director, Knight Frank India said, 2019 can be seen as a relatively positive year for the real estate sector. The historic rise in the office transactions is a significant growth indicator for the office market as it represents the continued commitment of domestic and global corporations in the country's growth potential despite the ongoing economic slowdown."
The residential sector also overcame the negative market outlook by registering a growth in sales volumes as well as new launches, he added.
"Economic headwinds such as slower GDP growth, reduced industrial output, poor consumer sentiments, amongst others, presented significant challenges to the residential market throughout the year.
"However, the slew of recent fiscal and monetary incentives by the government and Reserve Bank of India, seem to have had an arrestive impact on the real estate sector," Baijal said.