PROPGUIDE − A Complete Property Guide
#happyhome

Focus Shifts On Execution As Developers Rush To Finish Work In Q2  

Focus Shifts On Execution As Developers Rush To Finish Work In Q2  
 (Wikimedia)

India’s real estate sector, data show, may be headed for a more sustainable approach towards growth. While real estate developers slogged to finish what they had begun, buyers are seen investing in such projects on which the work is progressing at a fast speed. This could be a great way to move ahead if the sector has to fully shake off the troubles imposed on its during the past couple of years; a decline in property prices may not be an ideal way to deal with it.

According to the PropTiger DataLabs report for the second quarter (Q2) of the financial year 2016-17 (Realty Decoded Q2'FY17), developers across the nine cities have been “reluctant to reduce prices” while they made the best of their efforts to sell off the unsold inventory. As a result, barring Ahmedabad, Kolkata and Pune, unsold inventory across cities saw a dip. Property prices, on the other hand, remained range-bound.The nine cities surveyed 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.

When compared to the previous quarter, new launches saw a 14 per cent spike. The nine cities witnessed the launch of about 47,000 units when compared to about 41,000 in Q1.  According to the report, these numbers may shoot further up in the coming quarter as developers have been waiting for the festive season to launch new projects.  Like the previous quarters, the affordable segment lead the pack with about 61 per cent new launches being made in this category. 

From about 55,000 units in Q1 to about 54,000 units in Q2, homes sales in the second quarter saw a marginal quarterly decline of one per cent. Buyers’ restraint in this quarter could be attributed to the approaching festive season which is expected to throw attractive discounts. Apart from that, home buyers are also expecting a further rate cut by the Reserve bank of India (RBI). Sales are likely to shoot up further when the Real Estate (Regulation & Development) Act, 2016, is fully implemented.

"From spot discounts, flexible payment plans, waiver of registration, stamp duty and other charges to free white goods, gold coins, luxury cars, buyers across the country are spoilt for choices this festive season. This is coupled with developers focus on execution and launches only with approvals is expected to bring the fence-sitters into market," says the report.

On the other hand, home sales in Ahmedabad, Chennai, Hyderabad, Kolkata and Pune saw an uptick. At 35 per cent, West Bengal capital Kolkata saw the highest increase in sales over the previous quarter. Know more about the star real estate performers of Q2 here.

However, when it comes to absorption, Mumbai, Pune and Bengaluru stole the show. The three cities together accounted for 58 per cent of the total absorption in Q2, with Mumbai being the frontrunner at 21 per cent. According to the report, “buyers inclination continues to be higher towards projects which are showing visible construction progress”.

However, under-construction projects continued to account for nearly 70 per cent of the absorption. This is an indication developers are burning midnight oil to complete projects. By the time the Real Estate Regulation Authority (RERA) is in place, things might be right on the track for the sector. 

"The impact of recent repo rate cut by the RBI, the Real Estate Act, the GST (Goods and Services Tax) Bill, relaxation of rules for REITs (real estate investment trusts), the Seventh Pay Commission recommendations is expected to positively affect the sector over the next few quarters," says the PropTiger DataLabs report. Things will look up sooner than later. 


Tags: new launches, unsold inventory, Festive Season, PropTiger Datalabs, propguide, Data, Home Sales, FY17, Q2


The Bright Patches In India’s Real Estate Story In Q3

According to a PropTiger DataLabs report for the third quarter (Q3) of the financial year 2016-17 (FY17), home sales across nine major cities declined 20 per cent over the previous quarter. This, the report says, is the highest fall in sales in the past 12 quarters.

February 16 2017

+ Click Here To Read This Article

Demonetisation Halts Real Estate Recovery Q3 Was Expected To Usher In

According to a PropTiger DataLabs report for the third quarter (Q3) of the financial year 2016-16 (FY17), home sales across nine major cities declined 20 per cent over the previous quarter. This, the report says, is the highest fall in sales in the past 12 quarters.

February 15 2017

+ Click Here To Read This Article

Is NCR Losing Out To Mumbai, Bengaluru, Pune?

The National Capital Region, for very long, has been the largest residential real estate market in India. But, is NCR losing out to Mumbai, Bengaluru and Pune?

November 10 2015

+ Click Here To Read This Article

Monthly Watch: Home Sales In Ahmedabad Up 14% In September

New launches have, however, seen a decline of 58 per cent over the previous month.

December 01 2016

+ Click Here To Read This Article

5 Things Happened In Q2 That You Should Take Note Of   

According to the Proptiger DataLabs report for the second quarter of the financial year 016-17, Mumbai, Pune and Bengaluru contributed nearly 58 per cent to the total absorption across top nine cities.

November 09 2016

+ Click Here To Read This Article

Star Real Estate Performers In Q2  

According to the PropTiger DataLabs report for the second quarter of the financial year 2016-17, Kolkata saw the highest quarterly growth in sales at 35 per cent.

November 07 2016

+ Click Here To Read This Article

Realty Playing Well In West; New Launches Up 15% In July

According to PropTiger DataLabs report, new launches in major cities of west India saw a monthly increase of 15 per cent in July.

September 02 2016

+ Click Here To Read This Article

Realty Shines In South; Hyderabad Sees 176% Spike In New Launches

According to PropTiger DataLabs report, new launches in southern cities saw a monthly increase of 13 per cent in July.

September 02 2016

+ Click Here To Read This Article

Here are the week’s top news stories from the real estate sector.

Here are today’s top news stories from the real estate sector.

Data show Bengaluru has seen the highest net office space absorption in the past nine years. This...

In the recently released World Happiness Report 2017, India is ranked 121 in a list of 155 nations....

The Goods And Services Taxes has clearned a proposal to charge a cess of 15 per cent on luxury cars...

The Centre recently gave its go-ahead to the construction of the national capital region’s second...

PropGuide tells you how a better metro connectivity will raise real estate prices in Noida.

The first phase of a Metro network is already changing the way people commute in Bengaluru. Upon...

A building code is a set of norms that govern construction of buildings by stipulating minimum...

PropGuide simplifies complex real estate jargons for you.

Proptiger has released it's quarterly review report on India's real estate sector. Ankur Dhawan,...

Prime lending rate is the interest rate at which banks lend to its most credit worthy...

Subscribe Now

To stay tuned with real estate updates

Pick:

x +

Drop Your Query here


Top