Star Real Estate Performers In Q2
An analysis of nine major cities by PropTiger DataLabs shows that overall home sales figures in the second quarter of the financial year 2016-17 (FY17) are not encouraging ---when compared to the previous quarter as home sales have declined one per cent. However, the fall could have been worse had it not been for some cities performing exceptionally well. Their performance becomes more noticeable in light of the fact that home buyers exercised caution during the July-September quarter in hope of grabbing a better deal during the festive season.
Here are the four cities that saved the day for India’s real estate in the second quarter:
The West Bengal capital saw a quarterly sales growth of 35 per cent, the highest registered by a city in the September quarter. In terms of new launches, too, Kolkata registered the highest growth. New launches saw a 480 per cent appreciation in Q2 over Q1. At 31 months, the inventory overhand in the city was also comparatively low. A pick up in sales could be attributed to a correction in property prices—real estate in city saw a marginal correction of two per cent in the Q2 over the same quarter in the previous financial year.
Figures of new launches and home sales in the City of Nizams show the city is headed for a sustainable growth. While new launches in the quarter went up 20 per cent over the previous quarter, home sales saw an uptick of 24 per cent during the same period. At 21 months, the inventory overhang in the city also remained lower when compared to other major cities. Property prices, too, saw an annual increase of 11 per cent in the September quarter.
Data show Ahmedabad has plenty of new stock to offer and those looking for affordable housing will be spoilt for choice here. At 57 per cent, the quarterly growth in new launches have been tremendous in the Gujarat city. Homes sales, on the other hand, saw an increase of seven per cent over the previous quarter. The inventory overhang stayed at 29 months. Property prices saw an annual appreciation of three per cent.
When compared to the other three cities, new launches were lower in Chennai. This could be due to a higher inventory overhang. While new launches went up 15 per cent, home sales saw a marginal increase of two per cent in the second quarter over the previous quarter. The inventory overhang in Chennai stood at 38 months. Property prices increased four per cent year-on-year in the Tamil Nadu capital.
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, Chennai, Kolkata, Hyderabad, Ahmedabad, Real Estate, PropTiger Datalabs, propguide, Data, realtyInsightsDatalabs, Q2, 3_2016_PT_Reports