Home sales in the top nine cities of India rose 8% in the April-June 2016 quarter compared to a decline of 3% in the previous quarter on the back of a surge in sales in Bengaluru, Pune and Mumbai, says a report by online real estate advisor PropTiger.
The recent benefits announced by the government for development of affordable homes seems to have had a positive impact on launch of new projects in the quarter which jumped up by 14% to 41,000 units compared to 36,000 units in the preceding quarter. Over 50% of total launches were in the affordable segment.
The PropTiger report covered nine key Indian cities of Mumbai, Pune, Noida, Gurgaon, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.
The quarter also saw the pressure of inventory overhang easing from 38 months in Q4 FY'16 to 35 months in Q1 FY'17. Overall unsold inventory across these cities dropped by 2% over the previous quarter. Gurgaon and Noida, however, are still reeling under the pressure of high inventory volumes.
In the quarter, Ahmedabad and Hyderabad registered their highest quarterly sales during the past eight quarters, said the report.
This was also coupled with a price increase in both cities. Hyderabad saw the highest annual price appreciation of 8% and it was closely followed by Ahmedabad at 7%. However, price trends in all other cities during the quarter remained range-bound, said the report.
Residential real estate in India is at its inflexion point, with improved activity driven by softening interest rates,controlled supply and stagnant prices . The subsequent quarters should see more action as implementation gains ground on account of the Smart Cities Mission and AMRUT schemes, affordable housing and other Infrastructure projects.