Sales drop but prices to remain stable
Noida accounts for the largest unsold inventory, making up 60% of unsold stock across Indian cities, reveals a report
Sales in the real estate sector dropped by 18% over the last quarter, but prices are likely to remain stable, says the quarterly report released by PropTiger.com, an online real estate advisory firm funded by Newscorp. Despite the drop in sales, the quarter witnessed key funding transactions in the sector, it adds.
The quarterly report provides an analysis and review of real estate data collected from the top nine Indian citi es of Mumbai ( i ncluding Navi Mumbai and Thane), Pune, Noida (including Greater Noida and Yamuna Expressway), Gurgaon (including Bhiwadi, Dharuhera and Sohna), Bangalore, Chennai, H y d e r a b a d , Ko l k a t a a n d Ahmedabad.
As for the outlook for the second quarter, t he report says that the new launches will be slow, especially in cities of Bengaluru, Chennai and Hyderabad owing to the Ashadh month. Ashadh is usually not considered an auspicious time for fresh launches, according to some religious beliefs.
Shraadh, another Hindu period, will hold back new launches in the north Indian cities around the end of September.
Dhruv Agarwala, co-founder and CEO of PropTiger. com, says, “The drop in sales has been primarily due to a drop in new launches. The launches might pick up in October when the festive season begins. Further cuts in home loan rates might also help in the reviving sales in the real estate market”.
T h e r e p o r t s h ow s t h a t Mumbai, Bengaluru and Noida account for the largest unsold inventory, making up to 60% of the total unsold inventory across cities. Out of this, Ahmedabad has the largest (15%) ready-to-move-in unsold inventory.
Sales in the affordable segment (less than ₹ 50 lakh) came down to 52% in the quarter from 55% in the last quarter. Meanwhile, 52% of unsold inventory was in the affordable category.
In Noida, sales in quarter four of financial year 2015 stood at 7,250 units and reduced to 5,524 units in quarter one of financial year 2016, a fall of 24%. In Gurgaon sales reduced from 1,536 to 1,418 units, a reduction of 8%. In Bhiwadi, the reduction in home sales was as much as 31% and in Sohna around 34%.
The unsold inventory levels in Noida stood at 1,02,556 u n i t s , G u r g a o n at 2 1 , 4 3 6 units, Bhiwadi at 17,189 units and Sohna at 4 , 2 3 0 units. Ahmedabad led the way with t he most ready- t o- move- i n unsold i nventory, followed by Hyderabad, Chennai and Bangalore. The report also said that prices across cities remained stagnant.
As far as the unsold inventory in the affordable segment was concer ned, Noida l ed with 62,912 units out of which Noida Extension and Yamuna Expressway had 49,989 units.
Gurgaon’s unsold inventory stood at 826 units, Bhiwadi with 16,035 units and Sohna with 1,119 units.
Another trend noticed in the report was that Bhiwadi, S o h n a a n d N av i Mumbai had the highest s hare of investor demand.