Home Sales Up 24% In September Quarter: PropTiger Report
Real estate developers’ increased focus on project delivery has led to a drop in new launches while this has also been instrumental in an increase in home sales during the second quarter (Q2) of this financial year (FY19), data available with PropTiger.com show. According to the quarterly report Realty Decoded, home sales in India’s nine major cities increased 24 per cent year-on-year the July-September quarter. During the same period, new project launches dropped 35 per cent.
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.
"An increase in sales combined with a fall in launches is good news for the industry. The resulting decrease in inventory is a harbinger of increased activity in the sector over the next 12 months and points towards an upward movement in prices going forward," said PropTiger.com's Chief Executive Officer Dhruv Agarwala.
Sales, launches and inventory: City wise breakup
During the quarter, Noida registered the sharpest increase in sales numbers at 59 per cent at a time when new launches dropped remarkably. This combination helped the city offload existing inventory, with the stock declining 20 per cent. Following Noida closely in terms of sales numbers is Tamil Nadu capital Chennai, where homes sales increased 54 per cent in the September quarter. Interestingly, new launches in Chennai increased two-fold during this period while inventory stock declined by 16 per cent.
In Pune and Hyderabad, homes sales increased 50 and 49 per cent, respectively. In contrast, new launches declined 44 per cent in Pune while they jumped over two times in Hyderabad when compared to the same quarter the previous year. While old inventory declined 12 per cent in Pune, it declined only mildly in Hyderabad.
Gurgaon and Ahmedabad were the two cities where home sales declined during the September quarter. While the Millennium City witnessed a fall of 43 per cent home sales numbers, Ahmedabad saw the number decline by 15 per cent. New launched also declined in the two cities, with Gurgaon witnessing a fall of 46 per cent while Ahmedabad registering a decline of 28 per cent. Ahmedabad is also the city with the highest inventory stock. At the current rate of sale, it would take 47 months to sell off the existing housing stock.
In the Mumbai region, homes sales increased 22 percent while new launches fell 59 per cent. Unsold inventory stock reduced by eight per cent.
In Bengaluru, homes sales and new launches both increased by 27 per cent and 30 per cent, respectively. In Kolkata, homes sales increased six per cent while new launched witnessed an increase of 31 per cent y-o-y.
On an annual basis, Hyderabad witnessed the highest increase of 11 per cent in property prices, with rate of a square foot of space increasing to Rs 4,095 in the September quarter from Rs 4,558 in the same quarter on FY18. In the Mumbai region, rate of property increased five per cent while in Bengaluru and Kolkata prices increased annually by there and two per cent, respectively. Except Gurgaon, where property rates declined by four per cent, prices remained unchanged elsewhere.