Delhi-NCR Becomes The Highest Contributor Of Residential Sales In First Quarter
Homebuyers may have been impacted by the after-effects of demonetization in the first quarter of 2017, but they surely did not restrict themselves from purchasing homes.
The maximum contribution was by the Delhi-National Capital Region with 14983 units being sold, and Mumbai closely following with 14505 units being sold. In NCR, the sales increased by 24.5% in the quarter while in Mumbai, it increased by 23.6%.
Demonetization impacted in a very temporary way as there was dejected disposal growth, specifically in the review of third and fourth quarter.
The sales had witnessed a downfall right after the move of demonetization. But in January, new applications started coming for loans and then in February the growth was 16% more than January; in March the growth was 44% more than February.
Apart from the fact that the market gave a powerful comeback, but this time is also the best phase to purchase new properties as the interest rates are low and the rates of property are also reducing due to government initiatives.
The prices of homes have reduced but not as much as was expected after the move of demonetization. The prices saw a decline of 1%, 2% and 3% in NCR, Kolkata and Pune respectively.
The segment which witnessed the highest sales growth was the affordable housing with 31% of growth. On the other hand, the luxurious segment saw a downfall of sales by 4%.
If talking about the new launches, the category of Rs.25 to Rs.50 lakh was the highest with 43%, which clearly shows that many developers are entering the affordable housing segment. In the aggregate category of Rs.25 lakh and Rs.1 crore, 71% of new launches were witnessed. The affordable housing bracket of less than Rs.25 lakh, NCR was again the highest contributor of new launches, comprising 34% of the total.
The key markets of NCR, Hyderabad and Ahmedabad, witnessed a reduction of 3% in their unsold stock while there was an increase of 3% in the unsold stock of Pune, Chennai and Kolkata.