In a market where execution risks are a prime focal point, the Southern markets – Chennai, Bengaluru, and Hyderabad – have been remarkably resilient.
Latest ANAROCK research reveals that out of the total new housing unit launches in each top city between 2013 till Q3 2020, Chennai has the highest share of ready/completed homes at 61% of its total inventory, followed by Bengaluru with 48% and Hyderabad at 44%.
Chennai saw new launches of over 1.32 lakh units between 2013 and Q3 2020, of which 61% is already completed. In stark contrast, NCR saw over 5.54 lakh units of new supply launched in this period, of which just 26% units are completed.
Altogether >23 lakh units were launched between 2013 and Q3 2020 across the top 7 cities, of which 34% (approx. 7.92 lakh units) is completed. Another 19% is scheduled to complete within the next 12 months, and another 19% between one to two years.
Anuj Puri, Chairman - ANAROCK Property Consultants says, “Predominantly driven by end-users from the IT/ITeS sector, the conservative housing markets of the Southern cities also benefit from the proactive project completion focus of developers active there.”
Out of all the projects launched and completed between 2013-till date, the average time to complete projects in Chennai, Bengaluru and Hyderabad is between 4.1 - 4.3 years for smaller projects (with 100-500 units each) and between 5.5 - 5.9 years for large projects (>500 units each). This is significantly less than the average completion time in NCR, where it is 6 years and 7.2 years, respectively.
Cumulatively, the top cities saw more than 7.92 lakh units (34%) completed out of the total of >23 lakh units launched between 2013 and Q3 2020. The average time taken to complete smaller projects in the top cities is about 5.1 years, and 6.6 years for large projects. Chennai stands head and shoulders over its peers, followed closely by Bengaluru and Hyderabad.
Anuj Puri, Chairman of ANAROCK Group is a highly respected industry authority and thought leader with 30 years' experience in leveraging Indian and global real estate opportunities. His company ANAROCK has a staff complement of over 1800 qualified and experienced professional, with offices in all major markets in the country, dedicated services in Dubai and a global footprint with over 80,000 preferred channel partners.