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Housing sales in Tier 1 cities increase by 9%; Bengaluru witnessed maximum recovery followed by NCR

Unsold units remained stable on a QoQ basis, and the current unsold across the top 8 cities stands at 915,982 units. Ahmedabad witnessed a maximum reduction in unsold stock at 7%

Residential sales across tier 1 cities increased by 9% compared to last year when the sales were 63,995 units. Sales witnessed maximum recovery in Bengaluru by 72%, followed by NCR (46%), Chennai (40%), Hyderabad (33%), Pune (30%), MMR (20%), and Kolkata (16%), Residential Real Estate Market Report Q4 FY 2020-21 by Liases Foras has said.

On a year-on-year basis overall sales across tier I cities increased by 9%. Sales in Chennai witnessed maximum growth of 31% on YoY, followed by Pune (24%), Bengaluru (19%), Hyderabad (18%), and MMR (7%). NCR witnessed the maximum decline (8%), Ahmedabad (7%), and Kolkata (2%), the analysis said.

On a q-o-q basis, sales in NCR had increased in the quarter by 46%. The maximum growth in sales witnessed in Faridabad was by a remarkable 125%, while in Bhiwadi, deals stayed low at 315 units. Maximum sales occurred in Gurugram and Greater Noida, it said.

On a year-on-year basis, sales witnessed an 8% drop in NCR. All suburbs except Faridabad and Greater Noida showed a growth of 60% and 3%, respectively. Sales declined maximum in other suburbs (-43%), followed by Bhiwadi (-42%), Ghaziabad (-21%), and Gurgaon (-10%), the analysis said.

Unsold units remained stable on a QoQ basis, and the current unsold across the top 8 cities stands at 915,982 units.

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As for unsold stock, on a quarter-on-quarter basis, consolidated tier 1 cities’ unsold stock marginally declined in Q4 FY 20-21. The unsold stock increased in Hyderabad by 15% while it declined in all other cities. Ahmedabad witnessed a maximum reduction in unsold stock (7%), Bengaluru (4%), Kolkata (4%), and Pune (3%). The unsold inventory was reduced marginally in Chennai and NCR by 1 percent.

On a year-on-year basis, unsold stock in Tier I cities decreased by 7% in March 2021 compared to the same period last year. Ahmedabad witnessed the maximum decline in unsold stock (16%), followed by Kolkata (13%), Bengaluru (11%), Pune (10%), NCR (8%), and MMR (4%).

On a quarter-on-quarter basis, in Delhi-NCR, unsold stock reduced in all suburbs except Faridabad and Noida, increasing by 30% and 2%, respectively. On a year-on-year basis, unsold stock shrunk in Bhiwadi by (-17%) and Gurgaon by (- 16%), respectively, while it increased in Faridabad by 17%, the analysis said.

On a QoQ basis, months’ inventory decreased by 26% across Tier I cities and stands at 39 months in March 2021. Inventory overhang of Hyderabad and Ahmedabad are lowest among the tier 1 cities at 25 and 26 months, respectively.

On a year-on-year basis, the overall months inventory decreased by 15%. In Pune, it decreased by 29%, followed by Bengaluru (27%), Chennai (26%), Kolkata (12%), MMR (9%), Ahmedabad, and Hyderabad each by 7%. Months’ inventory remained at 55 months itself in NCR, the analysis said.

As for prices, on a QoQ basis in Q4 FY 20-21, the weighted average price across Tier I remained stagnant. Prices remained unchanged in Bengaluru, Chennai, Kolkata, MMR, and NCR. Prices in Ahmedabad reduced marginally by 1% while it increased by a percentage in Hyderabad and Pune.

On a year-on-year basis, the weighted average price across Tier I cities also increased by 2% compared to a year ago. Prices increased by 4% in Hyderabad and 2% in Pune. It increased marginally by 1%. Prices dipped in MMR, Kolkata (2%), and Bengaluru (1%). Prices in NCR remained stagnant, it said.

“The second way of Covid-19 will impact the momentum that real estate gained in the last two quarters. Since the concession of the stamp duty is also not available now, the sales will see a dip by 25 to 30% in the coming quarter. Developers will have to dole out more offers and discounts. It is a buyers' market, where developers' prerogative is to hold the customers rather than the inventory. It is a good time to bargain and buy,” Pankaj Kapoor of Liases Foras told Moneycontrol.
Moneycontrol News
first published: Apr 27, 2021 02:49 pm

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