The National Housing Board's (NHB) recent directive to housing finance companies to refrain from giving loans under subvention schemes was not as crippling as was initially assumed. ANAROCK research reveals that out of the total 280 projects launched in the April-June quarter of 2019, only about 23 projects (or 8%) were marketed under subvention schemes. These 23 projects comprised of 7,620 units – about 11% of the total 69,000 units launched in the quarter.
As India embarks on another year of independence, the country's real estate sector has a lot to be grateful for, a lot to hope for - and still a lot to worry about.
New supply of homes priced >INR 1.5 Cr stood at 16,100 units in H1 2019 against 5,240 units in H1 2017 (period immediately post DeMo) In H1 2017, luxury supply in most cities fell to three-digit numbers; NCR & Pune saw minimal launches - merely 140 units collectively Expensive markets MMR & NCR together comprise 59% share of new luxury stock in H1 2019 - 6,490 units & 3,030 units respectively Over 9,940 units in H1 2019 added in price budget of INR 1.5 - 2.5 Cr, remaining 6,160 units added in >INR 2.5 Cr budget Of the total 6.65 lakh unsold units in top 7 cities in Q2 2019, approx. 86,430 units are in the luxury category (priced >1.5 Cr)
The hard facts of declining consumption and a deepening economic slowdown in India are inescapable, and real estate has been severely impacted by them.
The tragic debacle around CCD's debt-ridden founder may be indicative of a larger malaise:
Overall consumption in India has taken a serious beating in the recent past, and the RBI needs to give a serious booster shot to hike up consumer sentiments.
Stalled projects (launched in 2013 or before) have over 1.74 lakh units, valued at up to INR 1,774 billion Of the total stalled units, 66% (over 1.15 lakh units) are already sold; 34% units unsold NCR has the highest share at 68% or 1.18 lakh stalled units across main 7 cities, followed by MMR with 22% or 38,060 stalled units In project value terms, MMR not far behind NCR - stalled units worth INR 822 bn in NCR & INR 802 bn in MMR Of total 1.18 lakh stuck units in NCR, 69% or approx. 83,470 units are sold out