Home sales rose 13% in FY18 in top 8 cities
Residential markets in the top eight cities are showing signs of recovery with home sales growing 13% in the financial year ended March 31, 2018, said a new report by real estate advisory firm Liases Foras.
A total of 265,564 units were sold during the financial year 2017-18 across eight tier 1 cities, including Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Hyderabad, with the mid income and affordable housing segments notching up the highest growth, said the report released on Monday.
Mumbai recorded the highest growth of 25% followed by NCR with 19% over the year-ago period. On a sequential basis, homes sales grew by 3% in the fourth quarter ended 31 March, 2018 over the previous quarter.
“Except Kolkata, all tier 1 markets have shown recovery. Chennai led the recovery with 27% QoQ (quarter-on-quarter) increase in sales followed by an extremely slow quarter. Pune and Hyderabad followed with 11% growth in quarterly sales,” the report said.
Residential sales during the financial year 2016-17 were massively hit by demonetisation as well as implementation of Real Estate (Regulation and Developments) Act (RERA).
Home sales during the period recorded a growth of just about 5%.
Despite the improvement in sales, new launches have continued to drop, registering a fall of 9% as compared to the previous financial year. However, launches in Mumbai, Hyderabad and Kolkata showed a growth of 42%, 53% and 29% respectively. Across the eight cities, a total of 132,904 units were launched during financial year 2017-2018.
“Growth in homes sales is driven by rationalisation both in prices and sizes of the apartments. The interventions by the government, like sub-vention schemes and builder’s incentives for creating affordable houses, have also improved sentiments. Growth has even happened in the luxury segment because of the moderation in prices,” said Pankaj Kapoor, managing director, Liases Foras.
Over 53% of the sales in the March quarter came from homes costing less than Rs 50 lakh. On a yearly-basis, sales of homes costing below ₹25 saw a jump of 24%.
According to the report, the weighted average price of properties in tier I cities witnessed an “insignificant growth of 1%” in the last financial year.
MUMBAI: