'Home Sales Decline 2%, New Launches Fall 20%’
Real estate developers in India not only refrained from launching new projects in the second quarter of this calendar year but also cut down their marketing budget, resulting in a fall in sales numbers.
A recently released report by PropTiger.com which compared number of the second quarter of this year with the same quarter the previous year indicates the same.
While the fall in new launches is attributed to developers’ restraint, imposed by the new regulatory regime, the budgetary reduction on marketing practices is basically a way of saving enough funds that would be more fruitfully invested in the upcoming festive season.
Cities covered in the study include Ahmedabad, Bengaluru, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida and Pune.
According to the report, while over new launches in top nine cities of the country declined 20 per cent, home sales numbers fell two per cent in Q2 on a year-on-year basis. Some cities, including Noida and Bengaluru, saw new launches significantly rising while others saw sales rising, too.
Interestingly, Gurgaon registered the biggest fall in new launches (79%) as well as home sales (52%). Noida, on the other hand, saw the highest increase in new launches (129%) as well as home sales (51%).
On the other hand, unsold units across markets have come down by nine per cent y-o-y.
“The numbers reveal that the market is changing ... We expect both new launches and sales to show improvements in next two quarters driven by an uptick in economy as well as stabilisation of regulatory infrastructure. Mumbai, Pune, Bengaluru and Noida have shown substantial improvement in the last quarter and we anticipate these cities to be the star markets in 201,” says PropTiger.com Chief Investment Officer Ankur Dhawan.