Affordable housing projects in Mumbai, NCRleadgrowth
Housing units in the range of 25 lakh to 50 lakh across major cities helped drive sales this festive season
Residential sales across eight major cities in India improved 15% in the second quarter of 2016-17, especially during the festive season. Further improvement is expected when more affordable apartments are available in these markets.
On an annual basis, residential s ales across eight major cities in India improved 15% in the second quarter of 2016-17. Sales were dominated by the Mumbai Metropolitan Region (MMR) and National Capital Region (NCR) which have shown 39% and 11% growth, respectively, on a year- on- year basis. Ahmedabad and Kolkata also saw an improvement in sales, says the residential market report of the second quarter of financial year 2016- 2017 (quarter ending September 2016) by Liases Foras which was released recently.
Interestingly, improved sentiments were evident even during the period of pitra paksh, a time considered inauspicious for big- ticket purchases by many Indians, says Pankaj Kapoor, managing director of Liases Foras.
Since t he gap between af f ordability and prices has reduced and home loan rates have come down, prices have more or less remained unchanged. Also, buyers are preferring ready-to-move-in properties that are available aplenty in NCR, especially in areas such as Greater Noida West, he says.
It has also been observed that about 30% to 40% of the sales has been recorded in the projects that are nearing completion, says Kapoor.
The upcoming quarter is expected to be good as sales during the Diwali season have improved. Going forward, it is only going to improve if prices do not go up and interest rates drop further, Kapoor adds.
The contribution of affordabe segment to the overall sales in the eight cities increased by 9%. The cumulative sales in all the eight cities was 24.7 million sq ft, all in the range of ₹ 25 lakh to ₹ 50 lakh. The ultra luxury segment of over ₹ 2 crore recorded sales of 11.5 mn sq ft.
As for total new launches during the quarter increased by 8% quarter- on- quarter to 58.5 mn sq ft. NCR and Ahmedabad saw the highest addition with 12.7 mn sq ft and 10.2mn sq ft., respectively. As many as 34% and 32% of the new launches were observed in the price brackets of ₹ 25 lakh to ₹ 50 lakh and ₹ 50 lakh to ₹ 1 crore, respectively. The ₹ 50 lakh to ₹ 1 crore segment in Hyderabad saw the maximum number of launches of 4.5 mn sq ft. Kolkata saw the maximum number of launches in the affordable segment (less than ₹ 25 lakh) while NCR saw the most launches in the price range of ₹ 25 lakh to ₹ 50 lakh.
Unsold stock across Tier 1 cities rose by 12%, says the report. The maximum i n c r e a s e w a s o b s e r ve d i n Ko l k at a f o l l owe d by Ahmedabad, MMR and Pune. Chennai and Bengaluru saw a decline of 7% and 3% respectively. Prices across all major cities more or less remained stable. Minor growth was observed i n Hyderabad, Ahmedabad and Chennai. The weighted average price levels in MMR, NCR and Pune were stagnant while Kolkata and Bengaluru reported a 1% drop, says the report.