At 63%, Bengaluru and Chennai Top Branded Housing Supply Share

Bengaluru and Chennai are named as cities with the top the branded housing supply as compared to other markets like NCR, Kolkata, and Mumbai. Out of 15,020 units launched in Bengaluru in 2020 till September, a whopping 63% is by branded developers. Besides that this year out of the total new launches of nearly 5,250 units in Chennai, branded developers held the 63% share a new report by Anarock has said.

The proportion of branded vs non-branded players’ supply in Bengaluru was 52:48 in 2015 and it was 53:47 in Chennai.

In the year 2019 around 2.37 lakh housing units were launched across the top 7 cities 2019. Out of these launched housing projects around 57% (over 1.35 lakh units) were by branded developers and the rest of them were non-branded players.

Nearly 75,140 units have been launched in the year 2020. In these units, more than 53% are by branded developers. The overall share in 2020 in comparison to 2019 declines marginally. The fact is that 2020 has witnessed a drastic fall in the total number of overall housing units launched.

The report also said that the share of branded players is expected to increase after the availability of the entire 2020 supply data by the end of December 2020.

The major reason behind this could be the liquidity crisis which the real estate sector has been seeing over the last two years. The report also depicts that smaller realtors have had the short end of the stick – they are facing challenges with raising funds from banks and other financial institutions.

Fresh supply in Kolkata and NCR continue to be dominated by the non-branded players in 2020. Out of the total 13,000 units launched in NCR in 2020, approximately 45% is by branded players and 55% is by non-branded developers.

Kolkata had a new supply of just 2,500 units in 2020, out of which 38% was by branded developers while 62% were non-branded. This ratio was 31:69 in Kolkata and 37:63 in NCR in the year 2015.

In MMR and Pune, the new supply share of branded developers is 54% and 55% respectively this year. In 2015 this ratio was 40:60 in MMR and 31:69 in Pune. Both markets have experienced that shares of branded players’ increase significantly over the years.

Branded’ developers have listed players, developers who have been in the industry for a decade and more.

With homebuyer’s preferences shifting towards branded products over the last few years, the share of homes by branded players is on the rise across the top 7 cities.