According to property research firm Liases Foras,Home sales in India’s top eight cities grew 9% in the quarter to June compared to that a year ago, marking the third straight quarter of expansion and indicating green shoots in a market emerging from a prolonged downturn.
The growth was led by cities including Ahmedabad, Hyderabad and Kolkata, where Home sales went up 20%. The national capital region, which includes the large markets of Gurgaon and Noida, saw a 12% increase in home sales while Mumbai recorded a modest 2% growth. On the other hand, Pune, Chennai and Bengaluru witnessed sales decline of 8%, 4% and 3% respectively.
The improvement in sales was helped by a 35% drop in launch of new projects compared to that in the previous quarter. The weighted average price during the quarter increased 4% year-on-year to Rs 6,660 per sq ft, with the maximum increase reported in Ahmedabad at 11%, while Chennai reported 8% and Hyderabad 6%. The Mumbai market saw prices remain flat while NCR saw a drop of 3%.
Dropping or at least stagnating property prices alongside lowering interest rates are expected to help push home sales. The past three quarters have seen a marginal increase in home sales indicating some kind of recovery but a full-fledged one is still some quarters away, experts said.