Residential sales across top 9 cities of India declined by 20 per cent in Q3 FY’17 compared with a 4% fall in the previous quarter.
Residential sales across top 9 cities of India declined by 20 per cent in Q3 FY’17 compared with a 4% fall in the previous quarter. In absolute terms, sales shrunk from 54,721 units in Q2 FY’17 to 43,512 units in Q3 FY’17. The pace of decline witnessed during the quarter is the highest in the past 12 quarters, highlights PropTiger’s ‘Realty Decoded’ report for the October-December quarter of the financial year 2016-17 (Q3 FY’17).
The report further highlights that before demonetisation, the monthly average residential sales and launches during July-Oct months were at around 19,000 units and 18,000 units, respectively; which were affected drastically on account of currency demonetisation. The monthly average sales and launches were reduced drastically during Nov-Dec months by 40% and 49%, respectively. The average drop in sale for the quarter however was at 20% on account of strong performance witnessed during the month of October.
Gurgaon, Noida and Ahmedabad showed a 30 to 40 per cent decline in sales in Q3 FY’17 on the Q-o-Q basis while Mumbai, Hyderabad, Bengaluru and Chennai witnessed around 20 per cent fall in sales during the same period. Kolkata and Pune recorded the lowest level of decline at 8 and 12 per cent, respectively.
Thus, the total launches in Q3 FY’17 decreased by 8% on the quarterly basis to reach 43,253 units in Q3 FY’17 compared with 47,032 units in Q2 FY’17, indicating a reduction in the activity levels across all the primary residential markets. The study covered nine key Indian cities of Mumbai, Pune, Noida, Gurgaon, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.
Commenting on the report, Anurag Jhanwar, Business head (Consulting and Data Insights), PropTiger.com and Makaan.com, said: “The third quarter of FY’17 witnessed drastic impact on residential sales in the aftermath of demonetization. The sentiments were affected drastically with a major section of consumers preferring to wait and watch in anticipation of further fall in prices.”
You may also like to watch this
He added that the reduction in supply on account of RERA compliance, fall in interest rates bundled with project specific offers from developers and the policy initiatives and benefits declared in the budget will dictate market dynamics for the next few quarters.
According to the study, Mumbai, Pune and Bengaluru contributed nearly 60 per cent to the total absorption witnessed in Q3 FY’17. Pune and Mumbai contributed the most to sales, each accounting for nearly 21% of the total sales during the quarter followed by Bengaluru at 17%, during Q3 FY’17.
The affordable segment has accounted for approximately 54% of the cumulative sales witnessed across top 9 cities during the quarter. The announcement of affordable housing segment being given the infrastructure status is likely to result in increased participation from the private players.