Prices of unsold housing units declined by 7% during the first quarter (January-March) of 2018 from the previous quarter in the nine key cities across the country as developers reduced property rates in a bid to boost sales, a report by PropEquity said.
Prices of unsold housing units declined by 7% during the first quarter (January-March) of 2018 from the previous quarter in the nine key cities across the country as developers reduced property rates in a bid to boost sales, a report by PropEquity said. According to the report, which covered Gurgaon, Noida, Mumbai, Kolkata, Pune, Hyderabad, Bengaluru, Thane and Chennai, the weighted average prices in the quarter were at Rs 6,260 per sq ft in January-March compared with Rs 6,762 per sq ft in October-December, it said. “For the first time in this quarter, we saw developers willing to reduce prices to sell their unsold units and improve their cashflows. We now expect the market to start showing a steady improvement in sales going forward,” Ankur Dhawan, chief investment officer, PropTiger.com, said.
In Gurgaon, the weighted average price of unsold housing units declined by 3% from the previous quarter to Rs 5,626 per feet while in Thane and Pune it declined by 8% and 7%, respectively. The other markets saw a marginal rise in prices while in Mumbai, it remained stable. Housing demand in these key cities rose by 8% from the previous quarter to 40,694 units, PropEquity said. Gurgaon witnessed solid growth of 156% from the previous quarter in new launches. However, absorption fell by 60% as customers delayed their buying decisions for the next fiscal.
In Noida, a few projects were launched and total units launched stood at 240 units, a decline of 55% from the previous quarter. However, sales saw a 31% rise from previous quarter as developers were clearing their earlier launched stock by offering discounts and offers. New launches witnessed 18% drop from the previous quarter, while sales rose by 12% as earlier launched units were being absorbed at attractive offers. Chennai saw a massive 240% jump in new launches in Q1 as 2,095 units were launched which is significant as Chennai market was lagging behind others for a long time.
Absorption witnessed a sizeable jump of 71% q-o-q as demand rose to significant levels. New home launches, which also witnessed a decline over the past few months, rose considerably in the January-March quarter. They jumped 48% to 25,970 units from 17,550 units in October-December.