Home sales decline by 20 per cent
Residential property sales across top nine cities of India declined by 20% during October to December quarter compared with 4% fall in the previous quarter.
Anurag Jhanwar, Business head (Consulting and Data Insights), PropTiger.com and Makaan.com, said: “The third quarter of FY’17 witnessed drastic impact on residential sales in the aftermath of demonetization. The sentiments were affected drastically with a major section of consumers preferring to wait and watch in anticipation of further fall in prices.”
The report further mentioned that before demonetisation, the monthly average residential sales and launches during July-Oct months were at around 19,000 units and 18,000 units respectively; which were affected drastically on account of currency demonetisation. The monthly average sales and launches were reduced drastically during Nov-Dec months by 40% and 49% respectively.
The average drop in sale for the quarter however was at 20% on account of strong performance witnessed during the month of October. Gurgaon, Noida and Ahmedabad showed a 30% to 40% decline in sales in Q3 FY’17 on the Q-o-Q basis while Mumbai, Hyderabad, Bengaluru and Chennai witnessed around 20% fall in sales during the same period. Kolkata and Pune recorded the lowest level of decline at 8% and 12%, respectively, the report mentioned.
Jhanwar added the reduction in supply on account of RERA compliance, fall in interest rates bundled with project specific offers from developers and the policy initiatives and benefits declared in the budget will dictate market dynamics for the next few quarters.
Total residential launches in Q3 FY’17 decreased by 8% on the quarterly basis to reach 43,253 units in Q3 FY’17 compared with 47,032 units in Q2 FY’17, indicating a reduction in the activity levels across all the primary residential markets.