Home sales bounce back in December quarter, clocks 22% rise in top 6 cities
Feb 05, 2014
Source : The Economic Times

 

DELHI: After several quarters of tepid growth, home sales bounced back in the three months to December with a 22 per cent rise in top six cities, according to property research firm Liases Foras.
Bangalore posted the biggest gain with home sales growing 58 per cent over a year ago between October and December while the National Capital Region (NCR) registered the smallest gain of 4 per cent among the top six cities.

 

Home sales in Pune rose 48 per cent while those in Mumbai Metropolitan Region (MMR) were up 26 per cent. MMR had had seen sales sliding in the last two quarters. Property prices, however, grew an average 1 per cent quarter-on-quarter in the top six cities, continuing a trend of marginal growth that has been on for six quarters now.
Prices rose only 1 per cent in MMR and 2 per cent in NCR. In 2010-11, both these markets had seen prices rise 8-10 per cent every quarter. "Sales have improved wherever developers have offered discounts," said Pankaj Kapoor, managing director at Liases Foras. According to the data, new launches saw a 14 per cent decline in the quarter, despite it being a festive season.
Home sales have been slow in the last few quarters as the sentiment across the country has been weak. The economic slowdown along with the uncertainty due to the upcoming elections have pushed sales down, especially in the mid and luxury home segments.
To remedy the situation and perk up home sales, developers started offering discounts—waiver of stamp duty and registration fees, broker or agent's bills, foreign trip, car, freebies like air conditioners, furnishings and modular kitchens— worth lakhs of rupee.
According to the National Housing Bank's Residex, the July-September quarter saw prices drop in 10 cities while 12 cities registered a marginal rise in prices. NCR saw prices drop by around 4.5 per cent while prices in Bangalore fell 1 per cent.
"While sales are still down, there was a certain improvement this festive season. Bangalore, anyway, has done well compared to others in this tough market," said JC Sharma, managing director at Sobha Developers.
Kapoor said property prices have not grown in the last four to five quarters, which was a period of high inflation. "For a buyer, this is an indirect discount," he said.
Santhosh Kumar, CEO, operations at property consultancy Jones Lang LaSalle India said sales have improved in recent months because of launches in the affordable segment as well as the fact that developers were willing to reduce prices. "In NCR, developers did not drop prices much because of which home sales, even in the festive season, were lukewarm," said Kumar.

 

Latest Realty News

Realty firms find fertile ground in education
Feb 05, 2014
DELHI: Real estate may be on a slow lane but education is booming, thanks to India’s huge demographic advantage.
Experts, pharma firms doubt US intellectual property ranking; India lowest among 25 countries
Feb 05, 2014
DELHI: Intellectual property experts and generic drug firms in India have questioned the methodology and even the motive behind the US Chamber of Commerce's Global Intellectual Property Centre (GIPC) index in which the nation has been ranked the lowest among 25 countries.
Vikram Bakshi sells assets to create legal battle against McDonald's
Feb 05, 2014
DELHI: McDonald's estranged India partner Vikram Bakshi has sold two prime retail properties and is in the process of selling a third one in Delhi's Connaught Place as he prepares for a prolonged and expensive legal battle with the US burger chain.
Billionaires and Millionaires Dominate Rajya Sabha 2014
Feb 05, 2014
DELHI: Democracy is an abundance of riches, as the worth of the new occupants of the Upper House benches is being revealed in the run up to Rajya Sabha 2014. Thirty-six out of 55—over 70 per cent—are crorepatis. Property is one of the major wealth factors listed and many of the new candidates are businessmen who have entered politics or vice versa. Bihar might be one of the poorest states in India and seeking special category status, but the richest candidate in the new pantheon of Elders is sec
Sahara lines up Rs 32,400 cr investment; 56,000 new jobs
Feb 05, 2014
DELHI: Sahara group, whose legal battle with Sebi continues in Supreme Court over refund of over Rs 20,000 crore to investors, has made a surprise announcement of plans being afoot to hire over 56,000 new employees this year along with investments to the tune of nearly Rs 32,400 crore.
DDA to raise floor area ratio for hotels by up to 66%
Feb 04, 2014
DELHI: The Delhi Development Authority has decided to increase the cap on total floor area for hotels by up to 66 per cent, DDA vice chairman Balvinder Kumar said on Friday.
Home sales bounce back in December quarter, clocks 22% rise in top 6 cities
Feb 04, 2014
DELHI: After several quarters of tepid growth, home sales bounced back in the three months to December with a 22 per cent rise in top six cities, according to property research firm Liases Foras.
Housing Start Up Index launched for 27 cities
Feb 04, 2014
DELHI: There is a declining trend in the construction of housing activities in big cities like Kolkata and Chennai whereas a growth is apparent in small cities like Bhopal and Hubli in the housing sector, according to the Housing Start Up Index.
How infrastructure is crucial in real estate
Feb 03, 2014
DELHI: We keep hearing ‘infrastructure bottleneck’ quite frequently in the real estate sector. To most of us, it mostly refers to adequate roads and flyovers. Infrastructure is a lot more than mere roads and flyovers. It is the backbone on which towns and cities are planned and built. It covers road connectivity, rail network (both metro and mono rail), public transportation, hospitals, adequate number of schools and colleges, water supply, electricity, telecom, a proper market yard and retail
Nod to hive off BSNL's tower into subsidiary
Feb 01, 2014
DELHI: The government on Friday gave an in-principle approval to hive off BSNL’s tower assets into a separate subsidiary.

Latest Realty News Of State

Realty Talk's