Home sales in India's top eight cities grew 9% in the quarter to June compared to that a year ago, marking the third straight quarter of expansion and indicating green shoots in a market emerging from a prolonged downturn, according to property research firm Liases Foras.
The growth was led by cities including Ahmedabad, Hyderabad and Kolkata, where home sales went up 20%. The national capital region, which includes the large markets of Gurgaon and Noida, saw a 12% increase in home sales while Mumbai recorded a modest 2% growth.
On the other hand, Pune, Chennai and Bengaluru witnessed sales decline by 8%, 4% and 3% respectively.
The weighted average price during the quarter increased 4% year-on-year to Rs 6,660 per sq ft, with the maximum increase reported in Ahmedabad at 11%, while Chennai reported 8% and Hyderabad 6%. The Mumbai market saw prices remain flat while NCR saw a drop of 3%.
According to Pankaj Kapoor, MD, Liases Foras, sales of homes under Rs 25 lakh in the top eight cities have remained stagnant on a year-on-year basis and dropped 25% on a quarter-on-quarter basis because they are often built in locations which are not feasible for end users.
This puts Affordable Housing projects like Aangan by Adani Realty at a distinct advantage as they bring together the best of both worlds - affordability as well as great locations. So far, Adani has two Aangan projects - one at Shantigram in Ahmedabad, and the other at Gurgaon, NCR
Dropping or at least stagnating property prices alongside lowering interest rates are expected to help push home sales in the coming days. The past three quarters have seen a marginal increase in home sales indicating some kind of recovery but a full-fledged one is still some quarters away.