PropTiger.com, on April 17, 2018, released the findings of its ‘Realty Decoded Report’ for Q1 (January-March) 2018. As per the report, sales across the top nine cities (Mumbai, Pune, Noida, Gurugram, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad) increased by 33 per cent over Q1 2017. This turnaround is being seen, after a continuous drop in sales for the last four years and raises hopes of a revival in the market. Nearly all cities have shown positive growth in sales, except Hyderabad where sales dropped by around 30 per cent and Ahmedabad where sales remained stagnant.
|City||Q1 CY2017||Q1 CY2018||Change||Q1 CY2017||Q1 CY2018||Change|
Source: Proptiger DataLabs. Notes: * Noida includes Greater Noida and Yamuna Expressway; ** Mumbai includes Navi Mumbai and Thane; ^ Gurugram includes Bhiwadi, Dharuhera and Sohna. Analysis includes apartments and villas across the regions.
According to the report, overall launches in the top nine cities declined by 60 per cent in Q1 CY2018 over Q1 CY2017, reflecting the continued focus of developers on selling existing projects, rather than launching new projects. However, launches in Bengaluru saw a 50 per cent jump and Kolkata witnessed an eight per cent jump in new launches. Mumbai had the worst quarter, in terms of new launches, with a drop of 81 per cent, compared to Q1 CY2017.
Commenting on the report, Ankur Dhawan, chief investment officer, PropTiger.com said: “After a stressful 2017, Q1 CY2018 has come as a breath of fresh air for the residential real estate industry, rekindling hopes of a revival in the sector, during this year. For the first time in this quarter, we saw developers willing to reduce prices, to sell their unsold units and improve their cash flows. We now expect the market to start showing a steady improvement in sales, going forward.”
The other key highlights of the latest report are as follows:
- Sales in Noida, Pune and Gurugram increased by over 50 per cent.
- Sales in Mumbai and Bengaluru increased by over 30 per cent.
- Strong turnaround in Delhi-NCR with both, Noida and Gurugram, showing more than 60 per cent increase in sales volumes.
- Sales in Mumbai and Pune are nearly five times of new units launched in this quarter.
- Absence of RERA had little impact on sales and new launches in Kolkata.