India’s Real Estate Sector Witnessing Healthy Turnaround: Anarock
India’s real estate sector is witnessing a healthy turnaround with rising sales and declining inventory, numbers from Anarock Property Consultants revealed. According to the market tracker, there has been a 24% jump in real estate unit sales in the latest quarter (April-June 2018) compared to the previous three months.
The jump comes on top of the 12% increase reported by the previous quarter (Jan-Mar) over the preceding three months (Oct-Dec), indicating a steady and strong recovery in real estate sales in India.
As a result, said Anarock, the total number of unsold units in India’s top seven cities fell to 700,000 at the end of June from 711,000 at the end of March and 770,000 at the end of December 2017.
On the other hand, the rising sales are encouraging real estate companies to announce new projects (launches), which have also risen fast in the last nine months.
According to Anarock, a total of 60,800 units are estimated to have been sold in the Apr-Jun quarter in the top seven cities of India, up from 49,200 in the previous quarter and 43,800 in the three months before that, Anarock said.
The improvement has been steady in all markets except Chennai. The Mumbai region, for example, saw sales of 15,200 units in the latest three-month period compared to 12,300 in the quarter before and 11,000 in the one before that, indicating a steady improvement in sales. In Bangalore, sales increased to 14,600 from 11,500 and 10,000 before that. Pune, and even the much-suffering National Capital Region, too saw strong increases in offtake.
Anarock’s quarterly numbers also give insights into the changing composition of the market, starting with the new projects. The difference can be seen when comparing the latest quarter (Apr-Jun) with the preceding one (Jan-Mar).
Flats costing less than Rs 40 lakh made up about one-third of the total new launches in the Jan-Mar period, while they made up nearly 45% of the new projects announced in Apr-Jun period.
The government has been keen to avoid a decline in house prices and has announced a new scheme to provide Rs 2.6 lakh subsidy to people who want to buy a flat using a home loan.
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