Home Sales, Launches Increased In Q3 FY'19; Inventory Declined, Shows Report
Home sales in India’s top nine markets increased by 30 per cent year-on-year in the third quarter of the current financial year (Q3FY19), with Pune and Mumbai contributing the highest to these numbers, a quarterly report by PropTiger.com shows. According to Realty Decoded, an analysis of nine key property markets in the country, a total of 73,691 housing units were sold during the quarter across the nine cities that include Ahmedabad, Bengaluru, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida and Pune. New launches, too increased three per cent during the quarter while inventory stock lying across the cities declined by 10 per cent in Q3 FY’19.
Pune and Mumbai were the show-stealers when it came to home sales during the quarter. While home sales increased 59 per cent in Pune, it shot up 54 per cent in India’s financial capital Mumbai. Gurgaon was the only exception during the quarter where home sales declined 26 per cent during the quarter. Interestingly, the Millennium City saw new launches going up 146 per cent, the highest seen by a city in the December quarter. Other cities where new launches increased significantly in Q3 include Bengaluru (136%), Chennai (96%), Pune (69%) and Kolkata (8%). Cities where new launches declined y-o-y include Hyderabad (66%), Noida (56%), Mumbai (48%) and Ahmedabad (19%).
While a combination of reduced launches and improved sales has brought down unsold inventory by 10 per cent to 799,081 units during the quarter, inventory overhang has also decreased to 31 months as compared to 34 months in the previous quarter.
At 21 per cent, Noida saw the sharpest annual fall in its inventory stock in Q3. Hyderabad (13%), Mumbai and Chennai (12% each) markets also saw their inventory stock declining significantly.
Currently, Ahmedabad has the highest inventory overhang of 45 months, followed by Kolkata at 41 months. Hyderabad has the lowest inventory overhang of 20 months, followed by Chennai and Bengaluru, at 22 and 24 months, respectively.