Affordable projects in Mumbai, NCR lead growth in festive season sales
Residential units in the range of Rs 25 lakh to Rs 50 lakh across eight major cities in India helped drive sales this festive seasonreal estate Updated: Nov 02, 2016 19:34 IST
Residential sales across eight major cities in India improved 15% in the second quarter of 2016-17, especially during the festive season. Further improvement is expected when more affordable apartments are available in these markets.
On an annual basis, residential sales across eight major cities in India improved 15% in the second quarter of 2016-17. Sales were dominated by the Mumbai Metropolitan Region (MMR) and National Capital Region (NCR) which have shown 39% and 11% growth, respectively, on a year-on-year basis. Ahmedabad and Kolkata also saw an improvement in sales, says the residential market report of the second quarter of financial year 2016-2017 (quarter ending September 2016) by Liases Foras released today.
Interestingly, improved sentiments were evident even during the period of pitra paksh, a time considered inauspicious for big-ticket purchases by many Indians, says Pankaj Kapoor, managing director of Liases Foras.
Since the gap between affordability and prices has reduced and home loan rates have come down, prices have more or less remained unchanged. Also, buyers are preferring ready-to-move-in properties that are available aplenty in NCR, especially in areas such as Greater Noida West, he says.
It has also been observed that about 30% to 40% of the sales has been recorded in the projects that are nearing completion, says Kapoor.
The upcoming quarter is expected to be good as sales during the Diwali season have improved. Going forward, it is only going to improve if prices do not go up and interest rate come down further, Kapoor adds.