The residential real estate market seems to be inching towards recovery in top eight cities in India. Sales have gained momentum during April-June quarter. Tier 1 cities have shown a growth of 9% from earlier year. Reports also point to the fact that buyers are cautious and hence the sentiment is still muted.
The buyer sentiment has shifted towards units priced above Rs 50 lakh. The total sales in this segment touched 26.4 million sq ft. The market share of the affordable segment declined from 10% in the previous quarter to 8% in the latest quarter. The reason for decline in demand for the affordable segment could be the location of these projects, experts feel. This segment remains the bright spot in the sector, though.
Experts at IKIA feel that property markets may take another 10-12 months to come back on track – light at the end of the tunnel!
While total new launches dropped 35% quarter on quarter, 34% of the new supply was in the price bracket of Rs 50 lakh to 1 crore followed by 33% in Rs 25-50 lakh category. Prices across the markets grew 4% on a yearly basis and 2% on a quarterly basis, with Ahmedabad seeing double-digit growth.
The unsold inventory level continues to be at a high –a 17% jump in unsold stock on a year on year basis. Realty markets of the national capital region, Mumbai and surrounding areas and Bangalore continue to be the most inventory-heavy markets among Tier I cities.