Sales of residential property reduced by 35 % across 8 major cities of India in the last quarter (July-September) as there is a continuous slowdown in demand in the real estate market, said research company PropEquity.
Residential sales were around 22699 units during 3rd quarter of 2017-18 in 8 major cities against 34809 units, which were sold in the previous quarter.
These major eight cities consist of Noida, Gurugram, Kolkata, Pune, Mumbai, Hyderabad, Chennai and Bengaluru.
“Housing demand (absorption) across key cities has dropped by 35% to 22,699 units from 34,809 units due to lesser new residential projects in market and lag effect in the revival of the end user driven demand,” PropEquity said.
The demand of housing sales is expected to rise from the present quarter, PropEquity added.
New residential project launches dropped by 83 % during the last quarter, from 24,900 units in the previous quarter to 4,313 units in the July-September period as builders were focusing on RERA compliance and GST implementation.
“The festive season has begun early this year & currently we are seeing the green shoots of recovery in the property sector specifically in the mid and affordable housing property, The demand for ready-to-move-in & resale properties is stable” Samir Jasuja, CEO, PropEquity said.
With the fall in new launches, unsold property dropped by 4% to 446,730 units from 465,116 units during the Jun-Sep period.
“This festive season is expected to do a lot better than the last year as builders are now offering a lot of freebies & discounts to clear their stock and selectively launching new projects. There is a lot of unsold inventory in real estate market which is nearing its completion,” Jasuja added.