Pan-India Real Estate Overview Q2 2015 vs Q2 2014: CommonFloor Report

Indian real estate market over the last few years has been a mixed bag of emotions for all alike – buyers, builders and even investors. While the new policies and initiatives of central government have in some way lifted up the sentiments within the sector, it has also been noticed that both builders and buyers alike have become more cautious. Moreover, other than few variations at the macroeconomic level, most metros have seen changes at a micro level in H1 2015 in comparison to H1 2014.

And to keep the prospective buyers abreast of the current real estate trends in each of the major cities pan-India, this report highlights some key demand-supply trends. To start with, Delhi-NCR, witnessed a steep fall in the new units supply (almost 56 per cent less than the previous year) in H1 2015 as against that in the corresponding year.

Mumbai Metropolitan Region, which saw huge inventory pile-up, has seen new supply essentially towards eastern suburbs as against the northern part of the region. Moreover, Navi Mumbai market has seen relatively upward trajectory in the same period.

Bangalore saw residential development primarily along infrastructure projects such as metro Phase 2 corridor and the IT spill-over effect towards east and south part of the city.

As expected, Chennai residential market, driven by manufacturing industries and IT/ITeS sectors, saw growth mainly towards the south and west part of the city.  

Hyderabad real estate market saw subdued new residential supply but there were signs of positive sentiments especially because the years-long political instability has ironed out.  

Pune residential market was driven predominantly by the spill-over effect of IT/ITeS development clusters and finally,  

Kolkata, with prospective new town development, saw residential demand along the upcoming metro infrastructure.

Further, the report also highlights the interest of prospective property buyers at the micro level where in the top markets based on online property searches by them have been identified in each of the major cities pan-India. For instance, in Noida and Greater Noida, there is a shift in demand of buyers from luxury and mid segment properties to the affordable ones while Gurgaon and Ghaziabad have demand in all segments.

Add to this, the report explores different phenomena affecting these demand dynamics such as re-ignited interests in the Western Delhi due to excellent connectivity and the recent clearance of the hurdle on Dwarka Expressway connecting the city with Gurgaon.

Lastly, the report also attempts to provide insights into the reasons behind the residential supply trends along the micro-markets in each city.

For detailed Pan-India Real Estate Overview Q2 2015 vs Q2 2014