The nation’s residential segment has witnessed a revival after demonetization, with sales increasing by 13% as compared to a 22% fall in the previous quarter across top 9 cities of India. The total sales increased from 43,500 units in Q3 FY’17 to 51,700 units in Q4 FY’17. There has been an increase in the number of launches across these cities by 19%, the highest in the last eight quarters. Around 51,500 units were launched in Q4 FY’17 as compared to 43,250 units during the preceding quarter, a report by PropTiger.com said today.
According to the findings of the ‘Realty Decoded Report’ for the January-March quarter of financial year 2016-17 (Q4, FY17), the surge in the volume was primarily driven by Mumbai, Pune and Bengaluru, which together accounted for 57% of total sales across the top 9 cities in Q4 FY’17. Mumbai contributed nearly 23% to the total sales during the quarter, followed by Pune at 18% and Bengaluru at 16%. As far as launches are concerned, Mumbai contributed a maximum share of 26% to total launches, followed by Hyderabad at 14% and Gurgaon at 13%.
You may also watch:
Commenting on the report, Anurag Jhanwar, Business Head, Consulting and Data Insights, PropTiger.com, Housing.com and Makaan.com, said: “Residential markets seem to have recovered from the demonetization lows with sales and launches showing healthy levels in Q4 FY’17. A large part of the recovery is driven by the affordable housing segment, which has found favour after getting infrastructure status. We might witness realignment of supply and demand with the implementation of RERA. While we might see some turbulence over the next couple of quarters, the long term outlook remains positive.”
The other key highlights of the latest report are as follows:
# Owing to the recent sops offered by the government and infrastructure status received by affordable housing, the share of affordable launches increased by 22%.
# According to the report, Mumbai Metropolitan Region (MMR) has witnessed a surge in launches within the sub-Rs.25 Lac segment. The region has contributed around 35% to the overall launches across top 9 cities. The share of affordable launches within MMR region increased from 12% in Q2 FY’17 to 53% in Q4 FY’17.
# Inventory overhang eased during the quarter – from 46 months in Q3 FY’17 to 38 months in Q4 FY’17. Mumbai, Bengaluru and Pune together accounted for over 55% of the unsold inventory.
# Noida has highest share of unsold inventory aged above 3 years; more than 65% of unsold inventory in Ahmedabad, Kolkata and Pune is in the affordable segment
You may also watch:
# Due to increased focus on project completions in the affordable segment, deliveries of projects increased nearly twice as compared to Q3 FY’16
# Prices remained range-bound in top 9 cities, across all the segments, with marginal annual appreciation in the range of 1% to 3%
# Bengaluru, Hyderabad and Chennai witnessed a marginal appreciation in the range of 3 to 5% per annum.