Residential real estate launches and inventories saw downward trend even as sales inched across top metro cities in the country, according to Kotak Institutional equities.
New launches were at 37.2 million sq ft in Q2 FY19, which are significantly lower than 62.1 million sq ft launched in Q1 FY19 and 50.5 million sq ft seen in Q2 FY18.
Consequently, inventory across India dropped 10% y-o-y to 1.3 billion sq ft from 1.4 billion sq ft in September 2017, reflective of decreasing launch activity.
Across all metros, launches remained the lowest in Delhi-NCR with only 1.6 million sq ft released in September 2018 in peripheral regions of Noida and Greater Noida.
Launches in MMR also showed a downward trajectory with 2.2 million sq ft being launched in September 2018.
However Bangalore market saw an increase in new launches of 3.2 million sq ft in September 2018, mentioned Kotak Institutional equities.
All-India real estate sales across major cities clocked 31.6 million sq ft in Sep 2018. Prices saw a slight increase in Q2 FY19 averaging around Rs 5,400 per sq ft (5,275 per sq ft in Q1 FY19), mentioned the report.