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Slew of launches in residential segment in 2020: Report  |  February 19, 2020

Moneycontrol News

While the real estate market sentiment for purchasing residential property remains weak, new launches from listed, organised developers with a strong execution track record are expected in 2020, says a new report.


Unlike the MMR and NCR markets, the South India market continues to see stable demand with developers largely focusing on mid-income and affordable housing launches, an analysis by ICICI Securities has said.


The analysis also noted that homebuyers’ preference has shifted to ready housing projects.


With around 50 percent of projects being stuck with no resolution in sight as many of these projects have already sold units to customers, “new homebuyers are now gravitating towards nearing completion/ready units across cities,” it said.


Therefore, levels of "saleable inventory" by developers to homebuyers is not all that gloomy and actual inventory levels would be closer to 18-24 months if stalled projects were to be excluded, it said.


All the developers have lined up launches in CY20 starting from the beginning of January 2020, it said, adding Q3FY20 saw overall residential volumes across India remaining stagnant with South Indian markets showing continued resilience while MMR/NCR volumes continue to remain muted.


In the South, Brigade Enterprises (Brigade) has seen a very good scale up in volumes over FY19-20 and it is expected to clock over 4msf of sales volumes in FY20. The company continues to launch more affordable/mid-income housing inventory across its ongoing projects in CY20 along with the launch of premium inventory, the analysis said.


Sobha will be releasing new inventory in its existing projects along with new launches across South India. launch of Sobha’s Hosur project in Q4FY20 is also expected, the analysis said.


Mumbai players too have lined up a number of launches. Oberoi Realty (OBER) has a number of launches lined up in CY20. The new launches include the Maxima tower at JVLR, Andheri (178 units priced between Rs 35-40mn) which had a soft launch in October 2019 and the company intends to also launch its Goregaon Phase 3 and Thane projects in H1FY21.


Godrej Properties (GPL) has a pipeline of 7-8 launches lined up in Q4FY20 of which it has already launched high value projects such as RK Studios, Mumbai and many projects in NCR and Bengaluru. Further, in H2CY20, GPL has a number of high value launches lined up including Bandra and Vikhroli launches in Mumbai, recently acquired Ashok Vihar project in New Delhi and a number of other mid-income housing launches.


Sunteck Realty’s (SRIN) recently acquired Andheri (W) project acquisition is slated for a Q1FY21 launch and SRIN expects to commence construction of its annuity assets of 3msf at Oshiwara District Centre (ODC), Goregaon in Q1FY21 as well in a phased manner. Also, with Avenue 1 and Avenue 2 projects in ODC, Goregaon nearing completion, the company plans to monetize the balance inventory in CY20 along with the launch of new phases in its Naigaon affordable housing project, the analysis said.