5 Things Happened In Q2 That You Should Take Note Of
Home sales did not shoot up as expected in the second quarter of the financial year 2016-17, shows a report by PropTiger DataLabs. However, this should not dishearten developers. A turnaround is in the offing if data is any indication. As far as home buyers are concerned, findings of the report could prove to be a guide for their future investments.
Here are five things in the report you should take note of:
- The good performance of the property markets of Hyderabad and Ahmedabad have been a consistent feature in subsequent reports. Home sales in Ahmedabad and Hyderabad in the September quarter saw an increase of seven per cent and 24 per cent, respectively, over the previous quarter. New launches, too, went up in the two cities—Hyderabad saw a quarterly increase of 20 per cent while Ahmedabad saw a 57 per cent increase in its new launches in the same period. On the other hand, property prices saw an annual increase of 11 per cent in Hyderabad and three percent in Ahmedabad.
- The share of the affordable segment in total new launches stood at 61 per cent in the September quarter. It was in the third quarter of FY14 that this segment had contributed in this range. According to the report: “The government incentives to developers in the affordable segment continues to provide the necessary momentum.” This means you will be spoilt for choice if you are planning to buy a home in this segment. Affordable units fall in the price range of Rs 25 to Rs 50 lakh.
- With a 35 per cent quarterly increase, West Bengal capital Kolkata saw the highest growth in sales during the quarter. At 480 per cent, the City of Joy also saw the highest number of launches in the period. As property in the city is more affordable – prices saw an annual decline of two per cent in the September quarter – buyers and developers are both active in the city.
- According to the report, while affordable units saw an increase in prices, they remained range-bound in the luxury and mid segments. This means housing in the luxury and mid segments are more affordable today than they were before. Mid-segment includes units in the Rs 50 to Rs 75 lakh budget while units over Rs 75 lakh fall in the luxury segment.
- Sixty per cent of the sales during the quarter were witnessed in real estate projects that were launched more than 12 months ago. This is an indication under-construction have not lost their charm among buyers. This also indicates developers are doing their best to complete projects within stipulated timelines.
Note: 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.
Tags: new launches, Property Prices, PropTiger Datalabs, propguide, Trends, realtyInsightsDatalabs, Financial Year 2016-17, FY17, Q2, 3_2016_PT_Reports