Significant turnaround in residential real estate – sales increased by 33% in Q1 CY 2018 over Q1 CY 2017 though launches continued to struggle: PropTiger’s report

• >50% sales increase recorded in Noida, Pune and Gurugram
• >30% sales increase noted in Mumbai and Bangalore
• Bengaluru only city where launches increased by 50% over Q1 CY 17

National, April 18, 2018 : PropTiger.com, part of Elara Technologies Pte Ltd which also owns Housing.com and Makaan.com, today released the findings of its ‘Realty Decoded Report’ for Q1 (Jan-Feb-Mar) 2018. As per the report, sales across top 9 cities increased by 33% over Q1 last year. This turnaround is being seen after a continuous drop in sales for the last 4 years and raises hopes of a revival in the market. Nearly all cities have shown positive growth in sales except Hyderabad where sales dropped by around 30% and Ahmedabad where sales remained stagnant.

According to the report, overall launches in the top 9 cities declined by 60% in Q1 CY’18 over Q1 CY’17, reflecting the continued focus of developers on selling existing projects rather than launching new projects. However, launches in Bengaluru saw a 50% jump and Kolkata witnessed an 8% jump in new launches. Mumbai had the worst quarter in terms of new launches with a drop of 81% compared to Q1 CY’17.

The study covered nine key Indian cities of Mumbai, Pune, Noida, Gurugram, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad.

Commenting on the report, Ankur Dhawan, Chief Investment Officer, PropTiger.com said: “After a stressful 2017, Q1 CY’18 has come as a breath of fresh air for the residential real estate industry, rekindling hopes of a revival for the sector during this year. For the first time in this quarter, we saw developers willing to reduce prices to sell their unsold units and improve their cashflows. We now expect the market to start showing a steady improvement in sales going forward.”

The other key highlights of the latest report are as follows:

• Strong turnaround in Delhi-NCR with both Noida and Gurgaon showing >60% increase in sales volumes
• Sales in Mumbai and Pune are nearly 5 times of new units launched in this quarter
• Absence of RERA had little impact on either sales or new launches in Kolkata

Corporate Comm India(CCI Newswire)