NEW DELHI: Home sales across top six cities in the country saw a quarter-on-quarter drop of 25% in the September quarter, the lowest sales since 2009 while unsold inventory rose to a high of 815,000 apartments, according to property research firm Liases Foras.
While sales in the national capital region (NCR) dipped 34% to 11.51 million sq ft over the previous quarter's 17.34 million sq ft, sales in Mumbai were down 9% to 10.22 million sq ft. Chennai and Bangalore, though, were hit the most with 46% and 43% drop in sales, respectively.
Unsold inventory rose from 765,000 apartments in the June quarter to 815,000 apartments at the end of September. In the NCR, unsold inventory rose to 318,000 apartments, which would take 83 months to be sold at the current pace of sales, said Pankaj Kapoor, managing director of Liases Foras.
Mumbai too saw a rise in inventory to 170,000 apartments, which would take 50 months to be sold. Pune was the most efficient market with an inventory of 69,000 apartments that can be sold in 23 months.
Property prices in most markets, except Hyderabad, rose marginally by 1-5% in the quarter, while in Hyderabad it grew by 10%.
Samarjit Singh, managing director of IndiaHomes, a real estate brokerage firm, said sales dropped in September and have not improved much in October either but enquiries and activity have started improve. "Sales should start to look up by the end of the next quarter. Recovery in real estate usually follows recovery in the capital markets by 6-12 months."
This renewed enthusiasm among buyers began since the new Modi government was sworn in coupled with a healthier looking economy in the last few months. According to the National Housing Bank residential price index Residex for the April-June quarter, 18 of the 26 cities covered saw prices increase, albeit marginally from 0.5% in Bhubaneswar to 3.9% in Pune.