Home sales stay flat in Q1, but project launches on the rise

BENGALURU: Sales of residential units in top cities were nearly flat in the first quarter, even as launches rose. Sales in the top eight cities were 69,485 units in April-June, compared with 69,689 units a year earlier, real estate data and analytics company Liases Foras said.

Five of these cities witnessed higher sales over a year earlier. The fastest growth was in Hyderabad at 33%, followed by Kolkata (25%). The National Capital Region posted the steepest sales fall of 19%.

Around 54% of sales of in the past quarter was contributed by homes costing Rs 50 lakh or less, said Pankaj Kapoor, managing director, Liases Foras. “Growth in the segment is supported by government schemes and initiatives,” he added.

According to a Liases Foras report, the top eight cities witnessed launches of 65,111units in the first quarter, an increase of 6% on-year. As many as 20,108 of these were in the Mumbai Metropolitan Region (MMR), followed by Pune at 14,616 units and NCR at 9,555 units.


“In the first quarter of the ongoing fiscal year, the Puravankara group sold 638 units … More than half of that came from ready-to-move-in inventory,” said its managing director Ashish Puravankara. It plans to launch 11million sq ft of residential projects over the next 12-18 months.

Sobha, which had pre-sale volume of more than 1million sq ft, said sales momentum that gathered during FY19 continued in April-June. “This has helped the company perform well on operational and financial parameters despite a tough macroeconomic and industry environment. We remain focused on execution of ongoing real estate and contractual projects,” JC Sharma, vice-chairman, Sobha, said at its results announcement.

The highest number of launches was in the Rs 25-50 lakh category, accounting for more than one-third (38%) of the total units launched. Pune contributed 30% of the launches in this segment.

“Unsold units witnessed on-year growth of 3%. Current unsold stock across the top eight cities stands at 9,75,247 units,” said Kapoor of Liases Foras.

In the past quarter, property prices also saw a downward trend in some markets. While prices declined by 2% in MMR, NCR saw a 7% drop. Prices remained unchanged in other top cities except for Hyderabad, where those rose 16%.

Policy interventions by the Centre, such as an increase in the limit on unit size for subsidy under the Pradhan Mantri Awas Yojna, the goods and services tax and the implementation of the Real Estate (Regulation & Development) Act have helped bring confidence back to both developers and buyers in the market.


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