Realty sector high on revival route, housing sales rise 57% in Tier-I cities

                While Navi Mumbai ranks high on several quality-of-life parameters, today it is a pale shadow of what it was intended to be. (Image via Wikimedia Commons 4.0)
Housing sales across tier I cities increased 57 percent over the last year on because of increased vaccination, low interest rates for home loans and flexible payment plans, a research 
by Liases Foras has said.

Tier I cities had recorded 66,548 units of sales in the September quarter, which is a 17 percent growth compared to the June quarter. Tier I cities witnessed a marginal increase in 
sales in the first half of 2021-22 from the second half of 2020-21 but soared over 80 percent over the corresponding period last year, the research said.
Sales recorded maximum recovery in Bengaluru by 99 percent, followed by Pune at 69 percent, Hyderabad at 62 percent, Ahmedabad at 58 percent, Chennai at 57 percent, MMR at 
56 percent and NCR at 35 percent on a year-on-year basis.

In MMR,  sales increased maximum in the Western Suburb (117 percent) and Thane (114 percent) followed by Central Suburb (95 percent), Western Suburb (Beyond Dahisar at 60 
percent), Panvel (42 percent), Island City (41 percent), Central Suburb Extended (22 percent) and New Mumbai (13 percent) over the last year.

In NCR, sales witnessed a 35 percent Increase in NCR. All suburbs showed significant amount of growth in sales when compared on YoY basis. Unsold stock shrunk in Bhiwadi by (14 
percent), Ghaziabad and Greater Noida by 8 percent. It increased 15 percent in Faridabad and 6 percent in Gurugram.

Unsold stock declines marginally

Consolidated unsold stock in Tier-I cities declined marginally in the second quarter to 896,404 units. Inventory in Tier-I cities stood at 40 months in September, dropping from 48 
months in June.

Unsold stock in Tier-I cities decreased 4 percent in September, compared to the same period last year. Bengaluru witnessed the maximum decline in unsold stock (18 percent), 
followed by Kolkata (9 percent), Pune (8 percent), NCR (4 percent), Ahmedabad (4 percent) and MMR (3 percent). Unsold stock increased in Hyderabad by 34 percent and in Chennai 
by 1 percent, the research said.

Prices remained stable
Prices remained stable in Tier-I cities on QoQ basis and increased 1 percent on a YoY basis. Prices remained unchanged in Bengaluru, MMR, NCR and Pune. Prices in Chennai 
increased 3 percent and increased by 1 percent in Ahmedabad and Hyderabad, while it decreased by a percentage in Kolkata.On a year-on-year basis, the weighted average price 
across Tier I cities increased by 1 percent compared to a year ago. Prices increased by 4 percent in Hyderabad, 3 percent in Pune, 2 percent in Ahmedabad, Chennai and NCR. 
Prices dipped in Kolkata (2 percent), and Bengaluru (1 percent) but remained stagnant in MMR, the research said.

Source: Money Control