Ahead Of Festive Season, Home Sales Increase 24%
India’s real estate sector may attain complete recovery this festive season amid rising sales number and declining inventory. A quarterly report by PropTiger.com shows home sales in India’s nine major cities increased 24 per cent in the July-September quarter of the current financial year when compared to the same quarter the previous fiscal. Unsold inventory, on the other hand, declined 11 per cent year-on-year, registering the biggest fall in 13 quarters.
Completion of ongoing projects being developers’ priority in the current scenario, new project launches during the quarter declined 35 per cent annually, the report, Realty Decoded, shows. Except for the real estate markets of the national capital region, rates of property have also increased in other cities, says the report.
"An increase in sales combined with a fall in launches is good news for the industry. The resulting decrease in inventory is a harbinger of increased activity in the sector over the next 12 months and points towards an upward movement in prices going forward," said PropTiger.com's Chief Executive Officer Dhruv Agarwala.
The nine cities included in the analysis are Ahmedabad, Bengaluru, Chennai, Gurgaon (including Bhiwadi, Dharuhera and Sohna), Hyderabad, Kolkata, Mumbai (including Navi Mumbai and Thane), Noida (including Greater Noida and Yamuna Expressway) and Pune.
The break up
Sales: Except Gurgaon and Ahmedabad where it declined by 46 and 28 per cent, respectively, sales numbers grew in all other cities. Noida emerged as the top performer, registering an annual growth of 59 per cent during the quarter.
Launches: Despite an overall decline, new launches witnessed an increase in some cities, including Hyderabad, Chennai, Bengaluru and Kolkata. Hyderabad saw the highest increase with new launches increases over two times the number in the same quarter the previous fiscal.
Inventory: Currently, Ahmedabad has the highest inventory overhand while Hyderabad has the lowest stock. At the current rate, it would take 47 months to sell the existing inventory in Ahmedabad. For Hyderabad, it would take 22 months.
Prices: At 11 per cent, rates of property increased the most in Hyderabad annually. During the same period, Gurgaon registered the biggest decline of five per cent in property prices.