Mumbai

Residential sales increased by 32% in Oct-Dec in top eight cities: Report

 

As per data from Liases Foras Real Estate Rating & Research, the top 8 property markets in tier I cities witnessed an increase in residential sales by 32% from the year ago period to 66,879 units during the quarter ended December 2017.

 

The quarter posted 3% sequential increase in quarterly sales across eight tier I cities including Mumbai Metropolitan Region, National Capital Region, Bangalore, Pune, Hyderabad, Chennai and Kolkata. However, the on-year increase might appear accentuated as the base period of October-December quarter was marked with demonetization and uncharacteristically low sales.

 

“The market, in terms of sales numbers, is reviving especially large part of MMR, NCR, Pune ad Hyderabad. However, the regions like Bengaluru and Chennai continue to be under sluggish sales regime largely because they are known to pick up later,” Pankaj Kapoor, MD, Liases Foras Real Estate Rating & Research.

 

But for the Chennai market, all tier I markets have shown recovery in property sales during the quarter ended December. On on-year basis, maximum recovery was seen in Hyderabad and Kolkata with 69% and 53% growth in sales numbers but yet they contributed to just 11% of the total tier I market.

 

The most encouraging growth in absolute numbers was observed in MMR and NCR markets that have shown 42% and 30% growth, respectively. Taken together these two markets contributed to 49% of total quarterly sales in tier I market.

 

Pricing, however, continues to be under pressure across most of the key markets. Weighted average price across tier I cities witnessed a marginal increase of 1%. Prices declined marginally between 1% and 3% in five out of these eight cities. Bengaluru witnessed no change while a slight increase was observed in Ahmedabad and MMR.

 

“For the last three years, prices have not gone up and that amounts to around 25% time correction helping bridge the gap between affordability and prices,” Kapoor said.

 

Over 54% of the sales during the quarter were contributed by sub-50 lakh segment followed by Rs 50 lakh to Rs 1 cr category with 29% contribution in total sales. Major jump in the sales on on-year basis was seen in the less than Rs 25 lakh category with 67% improvement.

 

Unsold stock has seen a decline both on on-year well as sequential basis and has dropped from 939,636 in July-September 2017-18 to 923,283 in October-December 2017-18. MMR added the highest new launch units, with a contribution of 35% followed by NCR at 15%. Among various cost segments, the cost bracket of Rs 50 lakh and Rs 1 cr witnessed maximum new launches amounting to 29% of total new supply followed by the cost brackets of Rs 25 lakh– 50 lakh with 28% contribution.

 

The Rs 50 lakh– Rs 2 cr segment of MMR witnessed maximum launches of 6,917 units contributing 23% of the total new launches across eight cities. NCR contributed 38% of the new launches in the affordable segment of less than Rs 25 lakh followed by Ahmedabad 18% and MMR 17%.
 

Written by The Realty Paper


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