Residential market report across Tier I cities in India
The Q1 FY 17-18, residential market report across Tier I cities in India. The main highlights of the report are:
- Sales across Top 8 Tier I cities in India increased by 6% on QoQ basis. This is after the 21% increase witnessed in last quarter. Post demonetisation market has grown by 28% in term of sales.
- MMR constituted 24% of overall Tier I cities sales, recording the highest number of sales at 15,824 units. This being the highest sales the city (MMR) has seen in last seven years. Chennai was the only market to witness a (-3%) decline.
- Affordable segment (properties priced below Rs 25 Lacs) across the eight cities, contributed to 17% to the overall sales as compared to 16% in the previous quarter. MMR recorded maximum sales in the affordable segment (24%) followed by Pune (22%). Sales in the cost bracket of Rs. 50 – 1Crs increased marginally by 1%
- Unsold stock (which stands at 9.5 lac units as of today) in Tier I cities marginally declined by -0.3% this quarter. Pune witnessed a -4% decline followed by Ahmedabad & Bangalore at -3%. Chennai market recorded an increase in unsold stock by 9% followed by Hyderabad (4%) and MMY (2%).
- Weighted average price across Tier I cities increased marginally by 1%. On a QoQ basis, prices declined in Hyderabad (-2%), Chennai (-1%) and NCR (-1%), while there is negligible change in other cities.
- Months inventory across Tier I cities decreased to 44, from 47 months in the previous quarter. A decline of 6% also implies that the market sentiment is improving. Bangalore has recorded a decline of -15% in months inventory, followed by Pune (-11%). Increase in sales and fewer new supply of units in both cities should be attributed to the decline in months inventory.
- 38% new supply was recorded in the cost bracket 50 Lacs to 1 Cr. followed by the cost bracket 25 Lacs to 50 Lacs which contributed 28%. MMR contributed 35%, the highest number of new supply across top 8 Tier I cities, where as Kolkata contributed the lowest with 8%.