Delhi NCR sees pick up in home sales in January, Mumbai home sales down
Mar 22, 2013
Source : The Economic Times
NEW DELHI: The National Capital Region saw a pick up in home sales in the month of January when compared to the same period last year. Home sales in the Mumbai Metropolitan Region (MMR), though, still dropped in this period, says a report by real estate data analytics and research firm PropEquity.

The report also showed that new launches have dropped in key cities except Bangalore, which is performing well. In the NCR a total of 8,812 units were sold in January 2013, which is a 46% increase over the same period last year. However, new launches in the NCR dropped by 35% to 5,208 units compared to 8,041 units last year.

"This revival in the NCR is caused by higher sales velocity in Greater Noida, Yamuna Expressway, Noida Extension and Faridabad," says Samir Jasuja, Chief executive officer of PropEquity.

Last year, Greater Noida, Yamuna Expressway and Noida Extension saw sales of only 694 units in the month of January. Now, the clearing up land acquisition issues and the availability of highly affordable units available on Yamuna Expressway and in Noida Extension have pushed this number up to 3,998 units in January 2013. New launches too have improved in this area by 18%.

Gurgaon, however has seen a 4% drop in sales in January 2013, compared to a year ago.

"Developers in key cities of NCR and MMR have controlled new launches keeping in mind the liquidity crunch as well as unsold inventory (except in Gurgaon). The dropping numbers last year had forced the market to align itself to the buyer sentiments, which is why developers started launching projects at lucrative rates to boost sales. This low scale correction along with the latest 25 basis points repo rate cut by RBI will support the market. The market requires at least 75 basis further dip in repo rates to strengthen sales," says Jasuja.

In MMR, the total sales for the month of January stood at 5,130 units, a drop of 14% from 5,983 units in January 2012. However, Mumbai developers reduced new launches by 48% during January 2013 to evade any significant demand supply mismatch. This drop in sales is mainly driven by Thane which went down by 23% this January when compared to the same month last year.

While the new launches in Greater Noida, Yamuna Expressway and Noida Extension increased by 18%, sales in that region have increased more than five times in January 2013 when compared to same time last year. During the same time period, sales in Noida dropped by 30% and in Chennai by 24%.

Developers in cities with falling demand have controlled their new launches to ensure a revival of the market. The government too has been taking positive steps to revive the sector.

Bangalore has witnessed an increase of 32% in sales and 22% in new launches this January. The sales numbers stood at 4,182 units in January 2013 compared to 3,428 units last January. The cities of Chennai and Hyderabad also saw a drop in sales because of which developer's curbed new launches. New launches in Chennai saw a drop of 47% and in Hyderabad a drop of 35% this January, when compared to a year ago.

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