Pune: The new supply share of branded developers in Pune region has increased by a whopping 25 per cent in the last five years. In the MMR region this share of branded developers in 2020 stands at 54 per cent.
In 2020, the overall share by branded players has increased to 53 per cent of the total supply (approx. 75,140 units in 2020 till September) across the top 7 cities. This clearly indicates that branded players have been increasing their supply to tap into the growing demand from homebuyers.
Another reason could be the liquidity crisis which the real estate sector has been grappling with over the last two years. Smaller players have had the short end of the stick – many of them face challenges with raising funds from banks and other financial institutions.
City-wise Trends – 2020 vs 2015
Of the total 15,020 units launched in Bengaluru in 2020 till September, a whopping 63 per cent is by branded developers. In Chennai too, out of the total new launches of nearly 5,250 units in the city this year, branded developers share was 63 per cent. In 2015, the ratio of branded vs non-branded players’ supply in Bengaluru stood at 52:48 and in Chennai it was 53:47.
2020 vs 2019 Trends
Approximately 2.37 lakh housing units were launched across the top 7 cities in 2019, out of which nearly 57 per cent (over 1.35 lakh units) were by branded developers and the remaining by non-branded players.
When the entire 2020 supply data becomes available by the end of December 2020, the share of branded players is very likely to have increased.
Notable trends between 2019 vs 2020:
Despite consumer preferences generally skewed towards branded products, NCR saw the new supply share by branded players dip in 2020 from the previous year. In 2019, the ratio between branded and non-branded stood at 57:43 while in 2020 it stood at 45:55.