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Affordable housing continues to be much in demand accounting for 19 per cent of the overall sales in Q2 compared to 17 per cent in the previous quarter, according to data by real estate data analytics firm Liases Foras.
The Mumbai Metropolitan Region (MMR) accounted for highest sales at 28 per cent with 3,388 units, followed by Ahmedabad at 24 per cent with 2,903 units during the quarter.
Sales across eight Tier-I cities decreased marginally from 64,881 units in the previous quarter to 64,781 units in the current quarter. Chennai and Kolkata witnessed a steep decline in quarter-on-quarter sales at 13 per cent and 8 per centrespectively. Sales in Hyderabad were up 11 per cent. Sales in the cost bracket of ₹1- 2 crore and ₹50 lakh -₹1 crore decreased 8 per cent and 5 per cent respectively. The ₹25-50 lakh segment accounted for 36 per cent of total sales. Unsold stock in Tier-I cities declined 1 per cent. Hyderabad and NCR witnessed 5 per cent decline followed by Ahmedabad and Bengaluru at 3 per cent. Kolkata and Chennai recorded an increase in unsold stock at seven per cent and six per cent respectively.
Weighted average price across Tier-I cities increased marginally by 1 per cent but Chennai alone witnessed a decline in price of 1 per cent. Prices across other cites either witnessed no change or increased marginally by one per cent.
“Months inventory across Tier-I cities remained constant at 44. Maximum increase was seen in Chennai at 22 per cent where the number of months increased from 58 to 71, followed by Kolkata with a 16 per cent increase from 44 to 51. Hyderabad witnessed the maximum decrease of 12 per cent in months inventory. This decline is attributed to an increase in sales and a lower supply of new units in the city, said Pankaj Kapoor, MD, Liases Foras.
Amit Ruparel, MD, Ruparel Realty, said, “While 2017 was the year of consolidation, the sector’s growth prospects for 2018 seem to be brighter, as the impact of RERA and GST would continue to unfold in 2018.
With the overall affordable housing segment receiving an industry status in the Budget and support from the Centre under the newly introduced regulation in the Pradhan Mantri Awas Yojana, the sector will witness a steady demand in the coming year. Moreover, from the investor’s perspective, affordable apartments are easier and more profitable to sell or even to put on rent, assuring decent return of investment.”
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