Gurugram witnessed slowdown due to non-approval of affordable housing projects in Q3 FY19
Sales across nine Indian cities rose 30 percent year-on-year to 73,691 units during October-December of 2018-19, with Mumbai and Pune leading the growth pack, says a report by PropTiger titled, 'Realty Decoded Report for Q3 FY19'.
A total of 73,691 units were sold in Q3 FY19 in the top nine cities, down 8 percent quarter-on-quarter, it said.
Cities in Maharashtra, namely Mumbai and Pune, led the growth pack showing an over 50 percent improvement in sales on a YoY basis. In Pune, sales rose 59 percent to 15,669 units, while Mumbai saw a 54 percent increase to 26,067 units.
Housing sales in Hyderabad rose 36 percent to 5,813 units. The same for Chennai increased 25 percent to 4,213 units. Bengaluru saw a modest 3 percent increase to 7,676 units, the report stated.
Ahmedabad saw a 6 percent increase in sales to 2,746 units and Kolkata witnessed a 15 percent increase to 3,410 units.
"However, on a year-on-year (YoY) basis, sales improved in all cities other than Gurugram, which witnessed a slowdown due to non-approval of affordable housing projects," PropTiger said. The city saw a decline of 26 percent in housing sales during Q3 FY19 at 3,711 units, the report said. In Noida, sales increased by 4 percent to 4,386 units during the October-December quarter.
The study covered nine key Indian cities of Mumbai, Pune, Noida, Gurugram, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.
“The growth momentum typically seen during festival seasons was not seen during the last season due to the liquidity crunch caused by the snowballing of the IL&FS issue, which slowed down home loan disbursals and new sanctions by large home finance companies. If we compare the numbers with the same quarter of FY18, sales are 30 percent higher, which is good news for the industry,” Ankur Dhawan Chief Investment Officer, PropTiger.com, said.
Reduced launches and improved sales brought down unsold inventory by 10 percent to 7,99,081 units. Inventory overhang decreased to 31 months as compared to 34 months in the last quarter.Ahmedabad has the highest inventory overhang of 45 months followed by Kolkata at 41 months. Hyderabad witnessed the lowest inventory overhang of 20 months followed by Chennai and Bengaluru at 22 and 24 months, respectively.