Residential market in terms of sales witnessed a decline, while prices remain stagnant during the June 2021 quarter, says Liases Foras in its 'Residential Real Estate Market Report Q1 2021-22’.
Liases Foras, a non-broking real estate research and analytics company, says, "During June quarter, tier 1 cities recorded sales of 57,093 units, an 18% decrease compared with past quarter when the sales were 69,691 units. Consolidated unsold stock tier 1 cities declined marginally by 1% on a quarter-on-quarter (QoQ) basis and 6% on a year-on-year (YOY) basis. The current unsold across the top eight cities stands at 905,531 units with 48 months of inventory overhang. Prices remained stagnant in tier 1 cities on QoQ and increased 2% on a YoY basis."
Sharing sales performance in major cities of India, the report says, in June quarter, the National capital region (NCR) witnessed maximum loss by 30%. It was followed by Ahmedabad at 24%, Kolkata (24%), Hyderabad (17%), Mumbai metropolitan region (MMR) (17%), Pune (16%), Chennai (12%), and Bangalore (9%).
However, on a yearly basis, overall sales across tier 1 cities increased by 116%. "Sales witnessed maximum recovery in Bangalore by 201%, followed by MMR (134%), Hyderabad (127%), Chennai (121%), Pune (119%), Ahmedabad (79%), NCR (64%), and Kolkata (56%) on YoY basis," Liases Foras says.
Commenting on unsold stocks in major cities from across the country, the non-broking real estate research and analytics company, says, consolidated unsold stock in tier 1 cities declined marginally in first quarter (Q1) of FY 21-22.
It says, "The unsold stock increased in Chennai by 4% and Hyderabad by 2% while it declined or remained nearly stable in all other cities. Bangalore witnessed the maximum reduction in unsold stock by 7% YoY."
Unsold stock in tier 1 cities decreased by 6% in June 2021 compared to the same period last year. Ahmedabad witnessed the maximum decline in unsold stock (15%), followed by Bangalore (13%), Kolkata (11%), Pune (7%), NCR (7%), and MMR (3%). The unsold stock increased in Hyderabad by 16% and in Chennai by 1%.
Months' inventory increased by 23% across tier I cities and is standing at 48 months in June 2021. According to Liases Foras, inventory overhangs of Bangalore and Hyderabad are lowest among the tier 1 cities at 28 and 30 months, respectively.
In Bangalore, the months' inventory stayed at 28 months in the quarter and became the city with the least months inventory.
"Overall months inventory decreased by 56% on a YoY basis. In Bangalore, it decreased by 71%, followed by MMR (59%), Pune (57%), Chennai (54%), Ahmedabad (53%), Hyderabad (49%), Kolkata, and NCR each by 43%," the report says.
Talking about price movement in residential properties in major cities of India, Liases Foras says, during Q1FY21-22, the weighted average price across tier 1 cities remained stagnant.
It says, "Prices remained unchanged in Bangalore, Chennai, Kolkata, and NCR. Prices in Ahmedabad increased marginally by 3%, while it increased by a percentage in Hyderabad, MMR, and Pune."
On yearly basis, weighted average price across tier 1 cities increased by 2% compared to a year ago. Prices increased by 5% in Hyderabad, 4% in Ahmedabad, and 2% in NCR and Pune. Prices dipped in Kolkata (2%) and Chennai (1%) while in MMR and Bangalore, it remained stagnant, the report says.
According to Liases Foras, Panvel in MMR witnessed increase in sales by 43% during the June quarter. Sales decreased in Western suburb extended by 27% followed by Thane (26%), Western Suburb (22%), Central Suburb (20%), New Mumbai and Central Suburb extended each decreased by 14% and 3% reduction in Island city.
"Unsold stock reduced 5% in Central Suburb Extended, followed by New Mumbai (4%), Thane (3%), Island City (2%), and Western Suburb Extended (1%) The unsold stock increased in Western Suburb and Panvel by 1%, unsold stock in Central Suburb remained stable," the report says.
On yearly basis, however, sales increased maximum in New Mumbai by 371% and Central Suburb by 227% followed by Western Suburb (165%), Panvel (162%) Central Suburb Extended (119%), Western Suburb Extended (66%), and Thane (50%).
Residential sales in NCR, however, decreased in Q1FY21-22 by 30%. The report says, "Maximum loss in sales witnessed in Faridabad by a 48%, while in Bhiwadi, deals stayed low at 260 units. Maximum sales occurred in Gurugram and Greater Noida. Unsold stock reduced in all suburbs except Noida where it rose by 2%."
On yearly basis, sales in NCR witnessed a 64% increase. " All suburbs showed significant amount of growth in sales when compared on YoY basis. Unsold stock shrunk in Bhiwadi by (-15%) and Gurgaon by (-14%), respectively, while it increased in Faridabad by 15%," Liases Foras added.