Business News | Premiumisation Impact: Demand Surges but New Launches Decline in Real Estate, Says Report
Get latest articles and stories on Business at LatestLY. India's real estate sector experienced a significant surge in demand in November 2024, as the new property launches declined, according to a report by Nuvama.
New Delhi [India], December 26 (ANI): India's real estate sector experienced a significant surge in demand in November 2024, with a decline in new property launches according to a report by Nuvama.
The report highlighted a sharp divergence between demand and supply trends, driven by a growing preference for premium properties across the country.
"Demand surges; launches fall.... The ongoing premiumisation trend in India's property space implies that volume-value trends have diverged sharply" said the report
It highlighted that by volume, the supply and demand in the top seven cities dropped 53 per cent and 7 per cent year-on-year (YoY), respectively, in November.
The report stated that the premium and luxury housing segments have been driving the growth, pushing average property prices higher in major cities. The NCR saw a remarkable 44 per cent YoY surge in average prices, followed by Kolkata (37 per cent). In cities like MMR and Bengaluru, prices increased 14-17 per cent YoY, while other cities recorded a 6-9 per cent YoY rise.
"With the luxury/premium housing segment performing well, prices have surged in all major cities" said the report.
However, when evaluated by value, the trends paint a contrasting picture. While the supply of properties by value fell 44 per cent YoY, demand showed a robust growth of 16 per cent YoY. On a year-to-date (YTD) basis, the supply and demand by value grew 9 per cent and 13 per cent, respectively.
The report also noted an increase in unsold inventory by value, which rose 5 per cent YoY. Despite this, the months of inventory available in the market dropped slightly to 16 in November from 17 in October, reflecting faster sales in the market.
In terms of housing sales by value, November saw a 16 per cent YoY and 2 per cent month-on-month (MoM) growth.
Among cities, the National Capital Region (NCR) recorded an impressive 151 per cent YoY rise in sales, followed by Chennai and Kolkata.
However, the report highlighted that the sales declined in Hyderabad. For the calendar year 2024, sales value has risen across most cities, with NCR leading the way with a 68 per cent YoY jump. Other cities like Kolkata, Mumbai Metropolitan Region (MMR), and Bengaluru also witnessed sales value growth of 12-15 per cent YoY.
With real estate valuations still considered attractive, Nuvama believes the sector holds strong potential for medium-term growth, supported by improving cash flows and rising demand for premium properties. (ANI)
(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)