Residential sales across tier I cities witnessed a marginal dip in sales in the first quarter of FY20. However new launches was were up across the top cities during the same period.
The property sales across top eight cities were recorded at 69,485 units in June quarter (Q1 FY 19-20) exhibiting a meager decline of 212 units as compared to Q1 FY 18-19 when the sales were 69,689 units, said Liases Foras.
According to the report, five out of eight Tier I cities witnessed an increase in sales over last year same quarter. Maximum growth was observed in Hyderabad (33%) followed by Kolkata (25%) while the maximum dip was witnessed in NCR (-19%). “Around 54% of the sales of this quarter were contributed by sub-50 lac segment. Growth in the segment is supported by the various government schemes and initiatives," said Pankaj Kapoor MD Liases Foras.
According to the report, top-8 cities witnessed new launches of 65,111 units during the first quarter of FY 20, an increase of 6% over the same period last year. The highest number of new launches in the quarter were noticed in MMR at 20,108 units, contributing 31% to the overall new launches in top-8 cities followed by Pune at 14,616 units and NCR at 9,555 units.
A maximum number of new launches were in Rs 25 lac – Rs 50 lac bracket and the segment accounted for more than one-third (38%) of total units launched during the quarter. Pune contributed 30% of the launches in this segment.
"Unsold units witnessed year on year growth of 3%. The current unsold stock across top 8 cities stands at 9,75,247 units,” said Kapoor. During the Q1FY20, property prices also saw a downward trend in some markets. While prices declined by 2% in MMR, NCR saw a 7% drop in property prices. Price remained unchanged across all the other top cities except Hyderabad which recorded an upward movement of 16%.
Policy interventions at the centre such as an increase in the limit of the size of a flat for subsidy under the Prime Minister Awas Yojna (PMAY), Goods & Services Tax (GST) and the implementation of Real Estate (Regulation & Development) Act, 2016 (RERA), etc., although caused an initial setback, have definitely helped bring back both end-users and developers confidence.
News Source: Economic Times, Url: https://bit.ly/2Kylhzx