Mumbai Metropolitan Region (MMR) has dominated the sales of residential units in the second quarter of 2016-17, said a report by Liases Foras, a Mumbai-based real estate consultancy firm. According to the report, MMR and National Capital Region (NCR) respectively have shown 39 per cent and 11 per cent growth in the sales of residential units from a year ago. On an annual basis, sales across eight major cities in India has improved by 15 per cent in the second quarter of 2016-17.
The report also said that residential property prices in MMR and NCR have been stagnant for the last two years. It said that reduction in the interest rate has reduced the gap between prices and affordability, which has translated into sales growth. “It has also been observed that at least 30-40 per cent of the sales have been recorded in the projects that are nearing completion,” said the report.
On a quarterly basis, the sales of residential units, however, were slightly muted. While Kolkata, MMR and Ahmedabad recorded more than 10 per cent growth in sales over the quarter, other cities like Bengaluru, Chennai and Hyderabad saw a decline. Interestingly, the ultra-luxury segment (residential units more than Rs 2 crore) witnessed a 38 per cent annual growth in demand.
“MMR, NCR and Bengaluru were the biggest contributors to sales in this segment,” said the report.
According to the report, unsold stock across tier 1 cities has climbed 12 per cent due to new launches. As on the second quarter of 2016-17, the unsold stock for eight tier 1 cities – Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Pune, MMR and NCR crossed 1,200 million sq ft.
“Maximum increase (in unsold residential units) was witnessed in Kolkata, followed by Ahmedabad, MMR and Pune,” the report said.