The sale of houses and new launches are at their highest level since the demonetisation period.
The sale of houses are at their highest level since the demonetisation period at approximately 1,24,000. Even the new launches have grown to their highest over the past 18 months and are at 92,000 units, said Knight Frank India’s ninth edition of its flagship half-yearly report – India Real Estate. However, fall in prices, increased launches, and government reforms, failed to enthuse housing sales as they just rose marginally at 3 percent in the first half of the year in the eight major cities.
In terms of fresh launches, Mumbai leads the pack with the highest 128 percent y-o-y growth, Delhi-NCR and Pune come next at over 75 percent. The price drop intensified in Mumbai, Pune and Kolkata at 9 percent, 8 percent and 8 percent respectively.
New home launches surged 46 percent during the January-June period of 2018 to 91,739 units in eight cities – Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad, compared with 62,738 units in the year-ago period. The unsold inventory level dropped by 17 per cent to 4,97,289 units, it said.
“Both sales and launches have grown over the past 18 months and are at their highest level since the demonetisation period at approximately 1,24,000 and 92,000 units respectively,” report said.
As for year-on-year comparison for the first half this year, the Knight Frank data showed that housing sales in Delhi-NCR increased by 5 per cent to 18,047 units as against the year-ago period.
Meanwhile, in the January-March quarter of 2018, the rate of real estate prices increase declined to 6.7 percent as against 7.2 percent in the October-December quarter. The rate was 10.4 percent a year ago. The decline in real estate prices in Delhi by 3.4 percent and Ahmedabad by 1.9 percent from the previous quarter largely fuelled the decline. RBI released the latest quarterly house price index (HPI) (base: 2010-11=100) for Q4 2017-18 on Thursday, based on transactions data received from housing registration authorities in 10 major cities namely Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Lucknow, Ahmedabad, Jaipur, Kanpur and Kochi.