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Home Sales In Top 8 Cities Up 21% In March Quarter

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Home Purchase-Sales In Top 8 Cities Up 21% In March Quarter

Conventional wisdom and anecdotal data may have suggested buyers holding back on home purchase in the first quarter, but data from top eight cities shows otherwise

MUMBAI: Homebuyers may have felt the pinch of demonetization aftereffects in January-March this year but that did not deter them from buying their dream home.

Conventional wisdom and anecdotal data may have suggested buyers holding back on a home purchase in the first quarter, but data from top eight cities shows otherwise.

Primary residential sales across the country’s top eight cities increased 21% in January-March over the previous quarter, numbers from Liases Foras Real Estate Rating & Research, a well-known housing, and real estate data agency shows.

Kolkata, Hyderabad, and Ahmedabad led the revival with growth rates of 47%, 43% and 30%, respectively. About 61,214 units were sold across these eight cities compared to 50,788 units in October-December quarter.

But year-on-year growth was still 5% lower, dragged down by weak market in Chennai and Bengaluru.

The Delhi-National Capital Region (NCR) contributed the most with sales of 14,983 units followed by Mumbai Metropolitan Region with 14,505 units. Sales in NCR and Mumbai grew by 24.5% and 23.6% respectively during the quarter. Bengaluru and Chennai bucked the trend of the big cities with housing unit sales falling 35% and 44, respectively.

“The impact of demonetization was transitory as it did result in subdued disbursement growth, particularly in the third quarter and part of the fourth quarter of the financial year under review.

But by the end of the financial year, the individual disbursement growth trajectory began normalizing,” said Keki Mistry, CEO, HDFC, the largest non-bank mortgage lender.

Mistry says in November and December property sales slowed immediately after demonetization. New applications, however, for home loans started growing from January which saw 21% growth over December. February had reported 16% growth over January, and March had 44% growth over February.

He added that the market has not just bounced back to normal, but it is the best time to buy property due to lower interest rates, declining property prices in some cities and government incentives.

Over the last one year, home loan interest rates have already eased more than 100 basis points, coming down to a six-year low of 8.35%. On Monday, State Bank of India reduced home loan rates further between 10 and 25 basis points. The revised home loan rate is at the lowest level since 2009, when it had announced a teaser rate structure.

Home prices fell but not as much one had expected after demonetization. Residential property prices in Chennai grew the highest by 5% from a year ago followed by Hyderabad with 4%. However, prices in Pune, Kolkata, and NCR declined by 3%, 2%, and 1%, respectively.

In Mumbai Metropolitan Region, country’s most expensive property market, the weighted average price rose 1% from a year ago to Rs 12,966 per sq ft. In NCR, prices eased 1% to Rs 4,855 per sq ft, while Bengaluru saw prices moving up 3% to Rs 5,584 per sq ft. Government moves to drive affordable housing has also led to higher numbers. “Both sales, as well as the new supply, are now driven by affordable housing segment,” said Pankaj Kapoor, MD, Liases Foras Real Estate Rating & Research.

On a sequential basis, the highest sales growth of 31% was in affordable segment with a price range of less than Rs 25 lakh, while the ultra-luxury segment saw a 4% decline in sales. The contribution of the affordable segment to overall sales in Tier-I cities increased to 16% from 15% in October-December quarter. Within the affordable housing segment, maximum sales growth of 25% was recorded in Mumbai Metropolitan Region, followed by Pune with 19%.

Out of new launches, a maximum of 43% was seen in the cost bracket of Rs 25 lakh and Rs 50 lakh, which indicates that more developers are now catering to affordable housing demand. Collectively, 71% of the new launches were seen in cumulative cost brackets of Rs 25 lakh to Rs 1 crore. In the affordable segment of less than Rs 25 lakh, maximum of 34% new launches were in NCR, followed by 18% in Mumbai Metropolitan Region.

Unsold stock across these markets has declined marginally by 0.3% on sequential basis. This is attributed to healthy sales and lower new launches during the quarter.

Among key markets, Ahmedabad, Hyderabad and NCR markets witnessed a 3% decline in the unsold stock, but Chennai, Kolkata and Pune witnessed a 3% increase in unsold stock. MMR and Bengaluru saw negligible changes in unsold supply.

Weighted average price across tier-I cities witnessed a marginal decline on a sequential basis. In Pune, Hyderabad, Kolkata, and NCR, prices dropped marginally by 1%.

Source: ET Realty

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

On Thursday, Andhra Pradesh Chief Minister N. Chandrababu Naidu said with the estimated expense of Rs. 5,556.74 crore, the construction of more than 2,44,164 houses, out of the proposed 3,03,044, has been commenced under the NTR Housing Scheme 2017.

While addressing the second day of the Collectors’ Conference he also said the construction of the remaining houses will begin soon. He mentioned that Prakasam and the Kurnool districts are ahead of the schedule in the urban housing scheme. Also, the works are in full swing in the Nellore and the Guntur districts under the rural housing scheme.

According to Naidu, the government will complete 2.5 lakh houses by January next year and another lot of two lakh houses by June.

By October 2, 2018, the state government intends to finish the construction of all the houses and plans to celebrate with massive house warming ceremony with local public representatives. This will help them set an example for housing schemes in other states.

Also Read: Raunak Group Presents Apna Pehla Ghar Campaign

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A Mumbai Suburbs’ Swift Transformation From Industrial To A Residential Zone: Wadala

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A Mumbai Suburbs’ swift transformation from industrial to a residential zone: Wadala

An industrial zone primarily, Wadala has undergone a drastic transformation in the past decade. Now an upcoming residential area, this Mumbai suburb is one of the seven islands to form the modern Mumbai. It is located on the Harbour line of Mumbai’s railway network.

Due to its proximity to BKC, large scale land development was inevitable, thus fueling the real estate market. Wadala is bordered by Dadar on the West, Matunga on the Northwest and Sewri on the South. Nestled between south Mumbai and the suburbs, Wadala enjoys strong connectivity by road and rail to most parts of Mumbai.

It has a number of flyovers like the Anik Panjrapol Link Road, Elevated road and Santacruz flyover. Thane, CST and Chembur are connected via the Eastern Highway while the Western Highway connects the locality to Bandra and Borivali. Wadala has the biggest bus depot in Mumbai. Furthermore, the multiple infrastructure initiatives like the monorail, Truck Terminal and the expansion of Highway are in various stages of development.

All this has given rise to residential demand and pushed the property value over the last few years. One of the most populated areas in Mumbai, Wadala has a large number of old temples, churches and dargahs, university campuses, schools, reputed hospitals and is also home to a former world’s largest IMAX dome theater. There are many stores, showrooms and malls around Wadala like the R Mall, High Street Phoenix and Palladium Mall.

Ramesh Nair, COO – business and international director, JLL India says, “A decade ago, property prices at Wadala were as low as Rs 2,800 per sq. ft. and it rose to Rs 14,000 a few years ago.”  As the infrastructure plans are on their way, so are the renowned developers like Ajmera, Dosti Group and Lodha Group among others.

Wadala at present offers one of the highest returns on real estate investments in the region. All the above-mentioned developers have their luxury projects in the area.

Ajmera I-Land introduces Aeon, Zeon and Treon towers with 2, 3 and 4 BHK plush homes. Conceptualized by renowned Singapore based Architects Space Matrix, these spaces with top-of-the-line lifestyle amenities exude exemplary class and finesse. The first residential floor begins at 110 feet from the ground level and offers several modern lifestyle amenities like kid’s pool, swimming pool, gymnasium, club house, open space and landscaped gardens, yoga room, kid’s play area and senior citizen corner.

Dosti Ambrosia is a 36-storey tower nestled in the 18 Acre Township of Dosti Acres. The architecture of the project was undertaken by renowned Hafeez Contractor in the 2 and 3 BHK apartments. It offers an exclusive rooftop swimming pool with 40,000 sq. ft. of landscaped gardens. You will find all modern conveniences like Gymnasium, Tennis Court, Indoor Badminton Court, Yoga and Meditation Room, Elderly Corner, Banquet Hall, Indoor Games, Indoor Badminton Court, Guest Rooms, Restaurant, Grand Entrance Lobby, Kids Play Area, 2 Club Houses and an Amphitheatre.

New Cuffe Parade by Lodha Group offers its residents all the comforts of a world-class lifestyle. The 2 and 3 BHK homes are spread in over 23 acres of land with 15 acres of stunning landscape and 75,000 sq. ft. of the club house. It includes 11 swimming pools, an organic farm, cricket pitch and multiple themed gardens. The buildings are designed by the world renowned WOHA in Singapore and the landscape was planned by Sitetectonix in Singapore.

Also Read: Mumbai to get Building Taller than Burj Khalifa, Road Bigger than Marine Drive

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Rajasthan Government May Hike The Affordable Housing Prices

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Rajasthan Government May Hike The Affordable Housing Prices

The prices of homes under the ambitious Mukhyamantri Jan Awas Yojana are expected to be increased by the state government.

According to the sources in the empowered committee meeting to be held on Monday, a proposal to increase the cost of a low-income group (LIG) and economic weaker section (EWS) houses will be proposed. Urban development and housing (UDH) minister Srichand Kriplani will chair the meeting. The LIG and EWS houses, presently are being constructed on government lands by private builders. These homes are sold at a fixed rate of Rs 1,250 per sq feet; out of which 1000 rupees per sq ft is given by Urban Improvement Trust (UIT), development authorities and local bodies to the builders.

According to provision 4(A) and 4(B), the developers are supposed to build EWS and LIG houses on government land. Seventy-five percent of such government land can be used in building EWS and LIG houses, while the remaining 25% can be sold by the developers. However, since the rates provided by the government are less the developers are not showing interest to construct houses under these categories. Sources said, “In Jaipur, not a single developer has shown interest in constructing houses under this model. The JDA has invited expression of interest (EOI) several times.”

The UDH is leaving no stone unturned to attract the builders in order to achieve the target of constructing 10 lakh houses by 2019. The sources mentioned, “As per the new proposal, the department has proposed to provide Rs 1,600 per sq feet rate to the developers. The land rates have increased subsequently over the period of time; this is why increasing rates has become a need of the hour.”

Sources further added, “The developers are constructing G+3 buildings at present. However, it is not cost-effective. It has been proposed to construct G+2 buildings for LIG and EWS category.”

Also Read: The Impact Of Regulations On The Real Estate Market

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