NEW DELHI: Home launches across the top nine cities registered a 14% rise in the July to September quarter, the highest in last five quarters, says a report by online real estate advisor PropTiger.
The affordable housing segment, with homes priced between Rs 25 lakh to Rs 50 lakh, accounted for about 61% of the total launches in the September quarter (Q2 FY17). As many as 47,000 new residential units were launched in Q2 FY17, against 41,000 units in the preceding quarter. Sales, however, remained stable, with 54,721 units launched in the Q2 FY17, compared with 55,550 units in Q1. However, annual sales increased by 12%, from 48,976 units in Q2 FY16 to 54,721 in Q2 FY17.
Inventory overhang during the quarter remained unchanged at 35 months. However, unsold inventory in all the cities, barring Ahmedabad, Kolkata and Pune, witnessed a decline. “The market seems to be finding its base with sales hovering at around the 55,000-unit range for the past two quarters. The increased focus of developers on execution and new launches mostly happening with prior approvals, are expected to bring fence-sitters into the market," said Anurag Jhanwar, business head, consulting and data insights,
PropTiger.com and Makaan.com. Home prices remained range-bound across the cities, with just Hyderabad registering the highest annual appreciation of 11%. "Developers have been reluctant to reduce residential prices and have instead been offering deferred and flexible payment schemes to entice buyers," said the report. Old projects launched more than 12 months ago accounted for 60% of the total sales during the September quarter, indicating buyers' inclination towards projects which are showing visible construction progress.
Mumbai, Pune and Bengaluru grabbed the major share of home sales during the quarter of about 58%. Mumbai contributed the most to sales, accounting for 21% of total sales during the quarter, followed by Pune and Bengaluru at 19% and 17%, respectively.
The PropTiger report covered nine key Indian cities of Mumbai, Pune, Noida, Gurgaon, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad. Home sales are expected to increase in the subsequent quarters on the repo rate cut by the Reserve Bank of India, discounts and schemes offered by developers and the Real Estate (Regulation And Development) Act, according to the report.
ref: http://realty.economictimes.indiatimes.com/news/residential/home-launches-rise-14-in-september-quarter-sales-stable-proptiger/55048951
