There has been a 9% increase in the sales of residential properties in tier-I cities, in the second quarter ending September compared to the last year’s Q2 figures. This increase has been driven mainly by affordable housing and performance of southern property markets of Bengaluru and Hyderabad. Sales volume in Bengaluru and Hyderabad rose 26% and 24%, respectively, as per data from Liases Foras Real Estate Rating & Research.
Approximately 55% of the sales of this quarter were contributed by sub-Rs 50 lakh segment, in which the segment of Rs 25-50 lakh is beginning to gain more traction with 16% year-on-year growth.
Housing sales in Chennai witnessed a growth of 21% followed by Kolkata at 16%, Mumbai Metropolitan Region 13%, Ahmedabad 12% and Pune 8%. National Capital Region is the only property market that witnessed a decline in sales by 12% as compared to same quarter last year.
Although the market has turned sluggish due to Non-Banking Finance Companies (NBFC) liquidity crisis, sales during the September quarter showed improvement on year-on-year basis. The quarterly growth during the quarter was muted, while on comparison with the previous year the market seems better both in terms of sales and new launches, said the report.
“On annual basis, we noticed growth of 9% by the end of September quarter and that indicated the market was recovering. However, going forward sales are expected to go down since crisis in NBFC sector that unfolded in September would hit the housing and real estate sector,” said said Pankaj Kapoor, MD, Liases Foras Real Estate Rating & Research.
Mumbai Metropolitan Region contributed almost a quarter of the total quarterly sales in tier-I cities. Unsold stock increased by 1% on a year-on-year basis. However, on sequential basis the unsold stock has grown marginally.
Weighted average prices across all tier-I cites remained stagnant on an annual basis and witnessed a dip of 1% on quarterly basis. New Launches were down by 16% on sequential basis while on annual basis new launches were still 121% higher. Around 84% of the new launches in the September quarter were in the sub-Rs 1 cr segment, the report added.