Data released by Liases Foras Real Estate Rating & Research, a well-known housing and real estate data agency, shows that home buyers may have felt the pinch of demonetisation after effects in January-March this year but that did not deter them from buying their dream homes. A brief snapshot of the report:
Residential Sales Data
- Primary residential sales across the country’s top eight cities increased 21% in January-March over the previous quarter. But year-on-year growth was still 5% lower, dragged down by weak market in Chennai and Bengaluru.
- The Delhi-National Capital Region (NCR) contributed the most with sales of 14,983 units followed by Mumbai Metropolitan Region with 14,505 units.
- Sales in NCR and Mumbai grew by 24.5% and 23.6% respectively during the quarter.
- Kolkata, Hyderabad and Ahmedabad led the revival with growth rates of 47%, 43% and 30%, respectively.
- Bengaluru and Chennai bucked the trend of the big cities with housing unit sales falling 35% and 44, respectively.
- Bangalore now has become one of the worst performing markets in India. The entire blame lies at the doors of NGT and State govt of Karnataka.
Product Mix Performance
- On a sequential basis, the highest sales growth of 31% was in affordable segment with price range of less than Rs 25 lakh, while the ultra-luxury segment saw a 4% decline in sales.
- The contribution of affordable segment to overall sales in tier-I cities increased to 16% from 15% in October-December quarter. Within the affordable housing segment, maximum sales growth of 25% was recorded in Mumbai Metropolitan Region, followed by Pune with 19%.
- Out of new launches, a maximum of 43% were seen in the cost bracket of Rs 25 lakh and Rs 50 lakh, which indicates that more developers are now catering to affordable housing demand.
- Collectively, 71% of the new launches were seen in cumulative cost brackets of Rs 25 lakh to Rs 1 crore. In affordable segment of less than Rs 25 lakh, maximum of 34% new launches were in NCR, followed by 18% in Mumbai Metropolitan Region.
- Unsold stock across these markets has declined marginally by 0.3% on sequential basis. This can be attributed to lower new launches during the quarter.
- Among key markets, Ahmedabad, Hyderabad and NCR markets witnessed a 3% decline in unsold stock, but Chennai, Kolkata and Pune witnessed a 3% increase in unsold stock.
- MMR and Bengaluru saw negligible changes in unsold supply.
Growth in Home Loans
- November and December were the worst performing months for home loan disbursement due to demonetization.
- New applications, however, for home loans started growing from January which saw 21% growth over December.
- February had reported 16% growth over January; and March had 44% growth over February.