The ‘most promising’ city
Hyderabad and Ahmedabad emerged as the most promising cities, with price increase of six per cent and five per cent, respectively, on the back of political stability and progressive infrastructural development even as prices across most cities either declined or increased marginally this year thus far.
Sales, in fact, have actually increased in the luxury segment of Rs.75 lakh and more up from 24 per cent last year to 29 per cent this year during the same period. The twin-cities had also gained momentum in the luxury segment, contributing around 11 per cent of the launches across the major cities this year as against three per cent the previous year.
Online real estate advisor PropTiger’s ‘India Realty Report’ for the financial year 2016, also shows Hyderabad overtook Bengaluru in absolute price increase over the last three years. Two- and three-bedroom units continue to dominate the market with over 70 per cent of total sales for a third straight year.
Demand for budget homes
“Demand for budget homes in the range of Rs. 25-50 lakh is likely to increase due to incentives announced in the Union Budget and Hyderabad along with Ahmedabad and Kolkata, with ‘affordable prices’ and relatively lower inventory overhang, are expected to provide opportunity for price appreciation,” said Anurag Jhanwar, business head (consulting & data insights), PropTiger.com.
The study reveals that that the total sales of residential units this year had dropped by almost 33 per cent, from around 315,000 units to 211,000 units, a fall for the third straight year. Launches had declined by 46 per cent comparatively, demonstrating a reduction in activity across the primary residential markets. National Capital Region (NCR) has been the most affected with its share in total launches getting halved over that of 2014 from 22 per cent share to 11 per cent now.
However, the Rs.50 lakh and below price range properties or in the affordable segment continued to command over 50 per cent in launches and 52 per cent in sales this year. Average apartment and villa unit sizes have fallen by three per cent and 18 per cent, respectively, from two years ago.
Preferences
The preference of consumers towards smaller apartments in the last couple of years is clear as one-bedroom flats account for 22 per cent in total residential sales this year; it was 21 per cent last year. These is more in demand in Bengaluru, Pune and Mumbai. Bengaluru also emerged as the largest contributor to launches in the country, with its share rising from 20 per cent to 26 per cent from 2014-16.
Source:The Hindu
