Realty sector shows optimism in urban India in Q3
Moneylife Digital Team 11 February 2016
The air of optimism in second quarter rolled over to the third quarter and sales across eight major cities in India improved 15%, says Liases Foras in a research note
 
The performance of the Indian real estate sector during the third quarter as been encouraging and reflects continuation of the air of optimism from second quarter, says Liases Foras in a research report. 
 
“The air of optimism in second quarter (Q2) of FY2015-16 rolled over to this quarter and sales across eight major cities in India improved 15%, quarter-on-quarter (QoQ) to 78 million sqft in third quarter (Q3). Ahmedabad, Bengaluru, Mumbai Metropolitan Region (MMR) and National Capital Region (NCR) showed improvement in sales, with MMR clocking in the best performance,” says Liases Foras in a research note.
 
 
The cities mentioned in the report include, MMR, NCR, Bengaluru, Chennai, Hyderabad, Pune, Ahmedabad and Kolkata.  
 
According to the non-brokerage research centric firm, which offers data and advisory services, during Q3, all eight cities cumulatively recorded highest sales in the cost range of Rs50 lakh to Rs1 crore, at 24.4 million sqft (31%), followed by affordable segment (Rs25 lakh to Rs50 lakh at 23.2 million sqft. Ultra-Luxury segment of more than Rs2 crore bracket has recorded sales of only 12.8 mn sqft in last quarter. MMR was the highest contributor to the luxury (Rs1 crore to Rs2 crore) and ultra-luxury segment (More than Rs2 crore) sales.
 
 
Liases Foras said, during the third quarter, the weighted average price of all the major cities in India stood at Rs6,534 per sq ft, a minor change from the previous quarter. Prices in Ahmedabad have climbed 8%, while price movement across other cities were mixed.
 
Chennai found a special mention in the report due to the deluge in the city. "Chennai market saw stagnant price and muted sales. The unfortunate deluge in the city has made both the buyers and developers less confident. Buyers are less confident of investing in under construction projects while developers are wary of launching new projects," the report says.
 
During the third quarter, unsold stock increased 5% to 1124.9 million sqft, with Ahmedabad and MMR showing major increase, while Chennai and Bengaluru a decline.
 
 
Bengaluru witnessed highest additions with 15.8 million sqft, during the third quarter, the report says. While MMR has shown improvement of 33% in new launches, most of them are in the Rs25 lakh to Rs50 lakh cost bracket. The total new launches across these eight cities increased 11% to 67.1 million sqft over previous quarter, Liases Foras added.
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