The launch of real estate units in India still remains below 2019 levels with Tier I cities lagging in the segment, stated a report. NCR, Mumbai and Hyderabad were the only three major markets that witnessed an increase in their real-estate unit launches over 2019 levels.
Launches across the country remained at the same level as 2020 but are 22 percent below 2019 levels, a report by Emkay read. Emkay is a leading researcher and investment institution for institutional equities, portfolio management services, wealth management, investment banking and commodities.
At 17 percent, Pune had the most overall pan-India launches, followed by Hyderabad, Bangalore and NCR. Kolkata and Chennai commanded less than 5 percent of the pan-India market share.
While launches of real estate have not yet recovered to the pre-COVID level, the share of listed developers increased to nearly 10 percent higher across India. “Bangalore, Noida and Mumbai witnessed notable increase with the share of listed developers rising to 34 percent, 34 percent and 9 percent respectively,” stated the report.
In terms of the configuration of the units being sold, 2BHK units were still popular in India. 2BHK units commanded over 40 percent of the market share. At the same time, the market share of 3BHK units are increasing across India. "Two key factors driving this trend include 1) WFH/hybrid office culture and 2) high affordability measured in terms of EMI/Household income,” said the report.
The Indian real-estate market was estimated to be worth $1.72 billion in 2019 but is expected to soar to $9.30 billion by 2040. The real estate sector is an important sector of growth and income for the country, with the sector being the second-highest employer in India after agriculture.