Sales of residential market dip by 6 pc, says report

ST Correspondent
Thursday, 26 July 2018

Housing sales rose by 3 per cent in January-June 2018 to more than 1.24 lakh units in eight major cities despite a fall in prices

Pune: While there is a year-on-year growth of 78 per cent in launches in Pune property market and 5 per cent dip in weighted average price in the sector, the sales figure has reduced by 6 per cent as compared to last year, according to the property consultant firm Knight Frank’s half-yearly report-India Real Estate. 

Housing sales rose by 3 per cent in January-June 2018 to more than 1.24 lakh units in eight major cities despite a fall in prices, Knight Frank India said. 

The property consultant on Wednesday released its India Real Estate report, which tracks primary property markets in eight cities, i.e. Delhi NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad.

“Both sales and launches have grown over the last 18 months and are at their highest level since demonetisation at approximately 1,24,000 and 92,000 units respectively,” the Knight report pointed out.

The report said launches of new homes in these eight cities rose 46 per cent during the January-June period of 2018 to 91,739 from 62,738 in the year-ago period. The unsold inventory level dropped by 17 per cent to 4,97,289 homes, it added.

According to Paramvir Singh Paul, Knight Frank Branch Director Pune,  launches in 2017 were hit by various government regulations like GST, demonetisation, RERA Act and this year, there has been a good growth in the number of launches which reflects signs of recovery in the sector. 

“However, as sales figures have dip despite the reduction in prices shows that people are bit reluctant to buy the property at current prices. We have seen there has not been much growth in the IT sector which is a major consumer in the sector and hence, the sales figure has seen a dip,” added Paramvir.

Speaking about unsold inventory, Paramvir said that the unsold inventory stood at 27,448 units and has seen a 32 per cent reduction on a year-on-year basis. 

Speaking on the impacts of various government policies on the sector, Vivek Rathi, Senior Vice President Research at Knight Frank said that reforms and legislation in the real estate sector are driving consolidation with several smaller realty developers entering into joint development or development management agreements. 

Similarly, the sector is also turning positive for end users rather for investors.

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