The report by Anarock Property Consultants says, that the top 7 cities saw 73,930 units launched by branded players; 65,550 units by non-branded players in the first half of 2019. Prior to and RERA in the first half of 2016, non-branded developers dominated by 60:40. However, since the first half of 2017, the share of new launches by branded players saw a steady rise; fly-by-night operators exited, smaller players consolidating with big brands.
Post-demonetisation and RERA, branded developers are dominating the real estate market with 53% of new housing supply in the first half of 2019. And while purchasing an affordable housing property, product quality ranked as the first key parameter followed by Brand Name. These are the outcomes of two different reports that were released today by two International Property Consultants.
The report by Anarock Property Consultants says, that the top 7 cities saw 73,930 units launched by branded players; 65,550 units by non-branded players in the first half of 2019. Prior to demonetization and RERA in the first half of 2016, non-branded developers dominated by 60:40. However, since the first half of 2017, the share of new launches by branded players saw a steady rise; fly-by-night operators exited, smaller players consolidating with big brands.
At the same time a report by Kinght Frank in association with Royal Institute of Chartered Surveyors (RICS) stated that while purchasing an affordable housing property, product quality ranked as the first key parameter followed by Brand Name.
The knight frank report further stated that 80% homebuyers put cost as the topmost consideration while buying a home followed by safety and security for 71% for homebuyers. 52% of home buyers highlighted parking space as a major gap in terms of their requirements in their current residences, followed by adequate security, playground and availability of public transport accounted for 43% each.
Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants, says that "An integral parts of Indian residential real estate’s coming-of-age process is the rise of *branded developers, who are outpacing their non-branded competition in overall housing launches. Reformatory changes led by demonetisation and RERA have spearheaded this movement."
ANAROCK research indicates that out of the total new supply in H1 2019 - approx. 1,39,480 units in the top 7 cities - over 53% (73,930 units) were launched by branded developers, and 47% by non-branded entities. In H1 2018, branded developers’ share was 52% and during H1 2016 - before DeMo and RERA - non-branded developers had a 60% share (approx. 95,600 units) of the total of 1,59,090 newly-launched units in the top 7 cities. Branded developers accounted for 63,490 units (40%) of the total supply in the period.
*Branded developers include listed developers, players actively operating for 10 years or more, newly-formed entities of large conglomerates, and players with sizeable areas under development either locally or pan-India," says Kumar. in H1 2018, as many as 87,580 units were launched across the top 7 cities. Out of this total, nearly 52% (comprising approx. 45,540 units) were launched by branded developers while the remaining 48% (42,040 units) were by the non-branded players. With the share of branded players increasing to 53% in H1 2019, the writing is clearly on the wall.
Nimish Gupta FRICS, Managing Director, South Asia - RICS said, “Housing is one of the most fundamental demands that influence the quality of life. Access to acceptable living conditions is an elementary human need, which affects individuals at many levels as it provides shelter, safety, security and for most of us represents the most significant investment that we will ever make during our lifetime. The affordable home segment offers great potential which is yet to be fully explored. This segment will definitely perform better when affordable housing projects ‘on-ground’, while catering to the needs of customers on security, safety and lifestyle attributes are successfully executed and energies stay focussed on delivering these within the promised cost and time frames.”
Knight Frank report says that 53% of home buyers said that self-use is the main purchase driver. While 48% highlighted better location and 44% expanding family size, amongst others as important drivers for their decision to buy houses.
Shishir Baijal, Chairman and Managing Director of Knight Frank India said “Customers of affordable housing are highly value conscious and since they normally buy a house once in their life time, the focus is more on developer credibility. Today, when most of the stakeholders in the real estate sector are boarding the affordable housing bandwagon, they need to first understand their consumers before converting their ideas into reality. This explicitly explains why few of the affordable housing developers, who are keeping customer preferences on the forefront are succeeding in this sector while most of the others are not.”
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