Major transformation since 2010-2015, when top 15 local players launched close to 2.58 lakh units From 2016 to H1 2021, national-level & corporate players – Godrej Properties Ltd., TATA Housing, Hero Realty, Sobha Ltd, Shapoorji Pallonji Group, Birla Estates – dominated, with Prestige Estates now also foraying into NCR Supply follows demand – major changes
A well-known real estate consultancy recently published a report on heavily delayed and fully stalled residential projects. It paints the kind of gloomy picture which most people tend to associate with Indian real estate these days. Since negativity sells, this report did not mention how many projects by leading developers are actually getting completed on
Given the huge funding crunch in the construction industry, the outlook for people who bought units in completely stalled projects is disastrous, while the prospects for buyers in heavily delayed projects are bleak at best. The overall value of the 1.74 lakh homes which are totally stuck across the 7 top cities currently exceeds INR
Top 7 listed real estate players will develop approx. 92.5 Mn sq. ft. in top 7 cities and tier 2 & 3 cities in the next 2 years Kochi, Coimbatore, GIFT City, Hosur, Thrissur & Trivandrum prominent tier 2 & 3 for their expansion plans Bengaluru most preferred with all top 7 listed real estate players
Another 15% is under pressure but has scope for resolution & certainty on principal recovery Merely USD 18 bn worth loans under ‘severe’ stress that need immediate measures NBFCs & HFCs (including trusteeships) together account for 63% of total loans while banks account for 37% At least 75% of total lending to Grade A developers
To say the least, the Covid-19 crisis has transformed consumer preferences. The accent is now on safety, security and access to ‘around-the-corner conveniences. These are natural consequences of a major pandemic that makes us scared about things that never worried us too much before – even the air we breathe and getting too close to
Pune’s housing market has remained remarkably strong despite the Covid-19 pandemic. Both demand and new supply were consistent from July 2020 to March 2021 after the State government imposed first wave restrictions. Unfortunately, the second wave in April to June quarter this year caused far more damage to Pune’s housing sector. Recent data by real
~24,570 units sold across top 7 cities amid the 2nd COVID-19 wave in Q2 2021 Vs ~12,740 units sold during 1st wave in Q2 2020; ~58,290 units sold in preceding quarter – Q1 2021 MMR & Pune drive residential sales among top cities, together accounting for 46% of the total housing sales in Q2 2021
Just when Pune’s housing market was recovering reasonably well with good demand and supply, the second Covid-19 wave disrupted its growth momentum. To make things worse, there has been a steep rise in the prices of construction materials like cement and steel, over and above increasing labour costs. There are more than 2.5 lakh homes
Of ~1.49 lakh units launched in top 7 cities in FY21, 58% were in the city peripheries; in pre-COVID-19 FY19, their share was 51% In Pune, 76% of all new launches in FY21 were in peripheral areas of Mulshi, Pirangut, Ravet, Chakan, Chikhali, Wadgaon Budruk, Talegaon Dabhade, & Undri among others; 67% in FY19 MMR had 67% new supply of FY21 in peripheral areas
