Residential properties sales in India's top seven cities rose 12 per cent quarter-on-quarter in the first three months of 2018, showing signs of revival following the hard knock the sector took in the wake of government's move to ban high value currency notes in late 2016, and then uncertainties surrounding the Real Estate Regulation and Development Act (RERA).
According to data compiled by Anarock Property Consultants, property sales across the Delhi-National Capital Region (NCR), Mumbai Metropolitan Region, Bengaluru, Pune, Hyderabad, Chennai and Kolkata cumulatively rose to 49,200 units in the January-March quarter, versus 43,800 units sold in October-December.
Kolkata saw the highest sequential growth in sales at 42 per cent, while in Chennai sales were down 12 per cent. Bengaluru and Pune saw 15 per cent sales growth. Sales in Mumbai and NCR were up 12 per cent and 11 per cent, respectively. Property sales in Hyderabad saw a marginal growth of 3 per cent.
“The series of policy reforms and structural changes have transformed the way Indian real estate business is conducted. The sector is by no means out of the woods yet, but we are now seeing some green shoots of recovery,” said Anuj Puri, chairman of Anarock Property Consultants.
With property sales showing revival signs, developers were also seen launching more new projects, barring the exception of Mumbai and Hyderabad.
New launches in the top seven cities in the first quarter of this year rose 27 per cent quarter-on-quarter to 33,300 units from 26,300 units. In Kolkata, new launches rose three-fold, while in Chenai and Bengaluru new unit launches more than doubled.
In Hyderabad and Mumbai, new launches were, however, down 30 per cent and 25 per cent, respectively.
Most of the new residential properties launches were in the affordable housing as well as mid-segment, with almost 74 per cent (24,600) of the launches having price tags of under Rs 80 lakh.
Puri noted that most developers were inclined to launch new projects depending on end-user demand, a major shift from the earlier investor and speculator driven market.
“The market has turned end-user friendly and 2018 is bring new launches that match demand,” said Puri. Overall, unsold inventory stood at 7.11 lakh units at the end of March, compared with 7.27 lakh units in the previous quarter.