Annual Residential Sales Across Tier I Cities Grown By 13% In FY 2018
Annual residential sales across Tier 1 cities have grown by 13 percent in the financial year 2018 as compared to the financial year 2017 with Mumbai witnessing a maximum growth of 25 percent followed by NCR with 19 percent increase in sales numbers, says a new report launched by Liases Foras, an independent non-brokerage realty research company.
The contribution of affordable housing segment to the overall sales in eight Tier 1 cities stood at 18 percent. NCR had the highest annual residential sales contribution to sales in the affordable segment with 3,230 units i.e. 26 percent followed by MMR with 2,887 units (23 percent), Ahmedabad with 2,493 units (20 percent) and Pune with 1,918 units with 15 percent of total sales in the segment, it says.
Sales across eight Tier I cities increased to 69,101 units in the current quarter from 66,879 in the previous quarter. Except for Kolkata, all tier 1 markets have shown recovery. Chennai led the recovery with 27 percent Q-o-Q increase in sales followed by an extremely slow quarter. Pune and Hyderabad followed with 11 percent growth in quarterly sales.
The most encouraging growth in absolute numbers was observed in MMR market with a sales growth of more than 2600 units as compared to Q4 last year. MMR contributes almost a quarter of the total quarterly sales in tier 1 cities.
The major jump in the sales on Y-o-Y basis was seen in the less than Rs 25 lakh category with 24 percent improvement.
On the price front, the weighted-average prices across all tier 1 cities remained stagnant due to high unsold inventory which has put pressure on prices, says the report.
All eight cities cumulatively sold highest number of units in the cost range of Rs 25 lakh to Rs 50 lakh, with sales of 24,180 units at 35 percent of total sales, followed by the cost range of Rs 50 lakh to Rs 1 crore at 30 percent of total sales. MMR contributed the highest to overall sales at 17,143 units i.e. 25 percent of total sales followed by NCR at 15,326 units i.e. 22 percent of total sales, it says.
MMR added the highest new launch units, with a contribution of 25 percent followed by Bengaluru (17 percent) and NCR (11 percent). Among various cost segments, the cost bracket of Rs 50 lakh to Rs 1 crore witnessed maximum new launches amounting to 39 percent of total new supply followed by the cost brackets of Rs 25 lakh to Rs 50 lakh with 36 percent contribution.
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