ThinkStock PhotosMUMBAI: Residential sales across top 8 property markets in tier I cities have risen 32% from a year ago to 66,879 units during the quarter ended December, showed data from data from Liases Foras Real Estate Rating & Research.
The quarter posted 3% sequential increase in quarterly sales across eight tier I cities including Mumbai Metropolitan Region, National Capital Region, Bangalore, Pune, Hyderabad, Chennai and Kolkata.
However, the on-year rise would seem accentuated as the base period of October-December quarter was marked with demonetization and uncharacteristically low sales.
“The market, in terms of sales numbers, is reviving especially large part of MMR, NCR, Pune ad Hyderabad. However, the regions like Bangalore and Chennai continue to be under sluggish sales regime largely because they are known to pick up later,” Pankaj Kapoor, MD, Liases Foras Real Estate Rating & Research.
Except Chennai market, all tier I markets have shown recovery in property sales during the quarter ended December. On on-year basis, maximum recovery was seen in Hyderabad and Kolkata with 69% and 53% growth in sales numbers but they have still contributed to just 11% of the total tier I market.
The most encouraging growth in absolute numbers was observed in MMR and NCR markets that have shown 42% and 30% growth, respectively. These two markets combined together contributed 49% of total quarterly sales of tier 1 market.
Pricing, however, continues to be under pressure across most of the key markets. Weighted average price across tier I cities witnessed a marginal increase of 1%. Prices declined marginally between 1% and 3% in five out of these eight cities. Bangalore witnessed no change while a slight increase was observed in Ahmedabad and MMR.
“For the last three years, prices have not gone up and that amounts to around 25% time correction helping bridge the gap between affordability and prices,” Kapoor said.
Over 54% of the sales during the quarter were contributed by sub-50 lakh segment followed by Rs 50 lakh to Rs 1 crore category with 29% contribution of total sales. Major jump in the sales on on-year basis was seen in the less than Rs 25 lakh category with 67% improvement.
Unsold stock has seen a decline both on on-year well as sequential basis and has dropped from 939,636 in July-September 2017-18 to 923,283 in October-December 2017-18. MMR added the highest new launch units, with a contribution of 35% followed by NCR at 15%. Among various cost segments, the cost bracket of Rs 50 lakh and Rs 1 crore witnessed maximum new launches amounting to 29% of total new supply followed by the cost brackets of Rs 25 lakh– 50 lakh with 28% contribution.
The Rs 50 lakh– 2 crore segment of MMR witnessed maximum launches of 6,917 units contributing 23% of the total new launches across eight cities. NCR contributed 38% of the new launches in the affordable segment of less than Rs 25 lakh followed by Ahmedabad 18% and MMR 17%.
The quarter posted 3% sequential increase in quarterly sales across eight tier I cities including Mumbai Metropolitan Region, National Capital Region, Bangalore, Pune, Hyderabad, Chennai and Kolkata.
However, the on-year rise would seem accentuated as the base period of October-December quarter was marked with demonetization and uncharacteristically low sales.
“The market, in terms of sales numbers, is reviving especially large part of MMR, NCR, Pune ad Hyderabad. However, the regions like Bangalore and Chennai continue to be under sluggish sales regime largely because they are known to pick up later,” Pankaj Kapoor, MD, Liases Foras Real Estate Rating & Research.
Except Chennai market, all tier I markets have shown recovery in property sales during the quarter ended December. On on-year basis, maximum recovery was seen in Hyderabad and Kolkata with 69% and 53% growth in sales numbers but they have still contributed to just 11% of the total tier I market.
The most encouraging growth in absolute numbers was observed in MMR and NCR markets that have shown 42% and 30% growth, respectively. These two markets combined together contributed 49% of total quarterly sales of tier 1 market.
Pricing, however, continues to be under pressure across most of the key markets. Weighted average price across tier I cities witnessed a marginal increase of 1%. Prices declined marginally between 1% and 3% in five out of these eight cities. Bangalore witnessed no change while a slight increase was observed in Ahmedabad and MMR.
“For the last three years, prices have not gone up and that amounts to around 25% time correction helping bridge the gap between affordability and prices,” Kapoor said.
Over 54% of the sales during the quarter were contributed by sub-50 lakh segment followed by Rs 50 lakh to Rs 1 crore category with 29% contribution of total sales. Major jump in the sales on on-year basis was seen in the less than Rs 25 lakh category with 67% improvement.
Unsold stock has seen a decline both on on-year well as sequential basis and has dropped from 939,636 in July-September 2017-18 to 923,283 in October-December 2017-18. MMR added the highest new launch units, with a contribution of 35% followed by NCR at 15%. Among various cost segments, the cost bracket of Rs 50 lakh and Rs 1 crore witnessed maximum new launches amounting to 29% of total new supply followed by the cost brackets of Rs 25 lakh– 50 lakh with 28% contribution.
The Rs 50 lakh– 2 crore segment of MMR witnessed maximum launches of 6,917 units contributing 23% of the total new launches across eight cities. NCR contributed 38% of the new launches in the affordable segment of less than Rs 25 lakh followed by Ahmedabad 18% and MMR 17%.
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