Home sales perk up 7% in December quarter across top 8 metros
5th July 2016Category : Real EstatePublished by :Rahul Verma Reading Time : 2 Minute News Sourced : India
Home sales across the top eight cities of India improved 7% year-on-year in the quarter to December 2015 while sales rose 15% on a quarter-on-quarter basis on the back of stagnant pricing and discounts by builders during the festive season, according to a report by Liases Foras.
The Mumbai and NCR markets saw average price of homes drop 2% y-o-y. Prices in Bengaluru saw an increase of 6%. Prices in most other markets dropped or rose marginally.
The Mumbai Metropolitan Region saw the best sales, growing 35% y-o-y. Sales were up 8% in the NCR market and 11% in Bengaluru and Pune saw sales dropping 18% y-o-y.
According to the report, an aggregate of 78 million sq ft of home space was sold across the eight cities compared with 72.9 million sq ft a year ago.
"It is a buyers' market today. Geographies, which were predominantly investor driven, are still suffering while areas which were inhabited and more suited to end-users are seeing improvement in sales," said Pankaj Kapoor, managing director of Liases Foras. "Now the gap between affordability and pricing is reducing."
Unsold stock increased 21% y-o-y and 5% q-o-q to 1,124.9 million sq ft, with unsold inventory in the NCR rising to 361.1 million sq ft, up 14% over last year, and that in Mumbai rising 28% to 235.9 million sq ft.
Across the top cities, total new launches in the quarter decreased 11% q-o-q to 67.1 million sq ft with Bengaluru witnessing the highest addition of 15.8 million sq ft. The NCR witnessed 61% decline in new launches during the quarter. Of the total, 52% of the new launches were in the price range of 25-50 lakh, indicating a move towards affordable options for home buyers. New launches in the affordable category-under 25 lakh-have increased by 50% over the previous quarter.
Across the top eight cities, 31% of sales were in the 50 lakh to 1 crore price range while about 30% of sales were in the 25-50 lakh price range.