Residential sales defy previous election year trends
Defying previous election year trends when sales and new launches remained muted during this period, the first quarter of 2019 has witnessed both housing sales and new supply rise driven by several measures by the government including sops offered in the interim budget, GST rate cuts and lowering of home loan rates post the Reserve Bank of India’s recent repo rate cut.
Residential property sales rose 58% from a year ago to 78,520 apartments during the quarter ended March across top 7 cities. The jump in sales was led by Mumbai Metropolitan Region (MMR), Pune and Delhi-National Capital Region (NCR) with an increase of over 95%, 80% and 52%, respectively, showed data from ANAROCK Property Consultants. Of the total new supply, affordable housing saw the maximum share at 44%.
The ripple effect of the NBFC crisis in the second half of 2018, coupled with the usually slow pre-election sentiment, according to experts, could have played spoilsport for both new launches and housing sales during this quarter. However, the various interventions by the government have had not only a buffering but a boosting effect.
“While we anticipated a negative spill-over impact of the NBFC crisis in the first quarter of 2019, housing sales and new supply assumed an upward trajectory,” said an industry expert. “The sector is currently riding on a new wave of optimism following the triple benefits it received from the government in the first three months of 2019. These sops have not only increased homebuyers’ sentiments but will also boost the confidence of builders and long-term investors.”