Residential property sales across tier I cities have grown 5% from a year ago during the financial year 2018-19 (April-March). Mumbai Metropolitan Region (MMR) has posted highest sales of 70,794 units, which is more than a quarter of total sales in top 8 cities. This was followed by the National Capital Region (NCR) with 54,174 units contributing 19.5% to total sales in tier I cities, showed data from report by Liases ForasResearch & Rating.
However, NCR is the only city which showed a 13% drop in sales compared to last year. Hyderabad and Kolkata witnessed maximum growth of 20% each followed by Bangalore with 14% increase in sales numbers.
Pune has shown the maximum growth in new launches in tier I cities followed by Bangalore and Hyderabad.
Top 8 markets saw marginal 1% decline in sales at 68,225 units during the fourth quarter ended March. On annual basis, upward movement in sales was registered in Kolkata with 54% rise and Hyderabad with 20% increase, while Pune too witnessed a growth of 14%. However, housing sales in NCR witnessed a decline of 21%, the data showed.
Real estate sector witnessed several policy changes which dampened the market sentiments in 2017-18. While the first half of 2018-19 was witnessed revival, the sector faced the distress in terms of cash crunch after the leading infrastructure lender IL&FS defaulted in September 2018 shaking the investor confidence in other NBFCs specially the ones focusing on real estate.
Despite this, the market floated through and saw revival in terms of sales as well as new launches and has a positive outlook for future expectations.
Unsold stock in tier I cities increased by 4% from a year ago. Hyderabad witnessed a 16% increase which is the highest followed by Chennai, Kolkata and Pune showing 15%, 12% and 10% respectively. Single digit growth was observed in MMR with 7%, Bangalore 5 and Ahmedabad 1%. Interestingly, NCR witnessed a decline of 8%.
The contribution of affordable segment with price tag of less than Rs 25 lakh to the overall sales in eight cities stood at 17% during the quarter, with 44% sales in the segment coming from MMR and Ahmedabad.
The price bracket of Rs 25 lakh to Rs 50 lakh seems to be the most preferred cost bracket with sales of 25,347 units, which is 37% of total sales, and maximum demand stemming from NCR and Pune. Cost range of Rs 50 lakh to Rs 1 crore is the second most preferred contributing 30% of total sales.
Sales in ultra luxury segment with prices of Rs 2 crore and above have dipped and only makes 5% to the total tier-1 cities’ sales.