India’s property market is showing signs of improvement as sales in the top eight cities showed a growing 17 per cent year-on-year in the July-September quarter. Sales rose from 57.8 million sq ft a year during the last financial year, to 67.9 million sq ft.
The highest volume of sales was recorded in NCR (16.9 million sq ft) followed by Bangalore (13.7 million sq ft). This is attributed to the festive season and one has to watch and wait to see if the momentum sustains, even after the freebies and the discounts vanish.
A decline in commodity prices has favored the developers, to bring down their cost of construction. This, in turn, arrested any unwarranted rise in price levels and kept the end users’ interest intact.
NCR, even after a rise in sales, still has the highest inventory of approximately 345.8 million sq ft, while the MMR has 217.2 million sq ft as of September 30. At the national level unsold stock remained at 1075.7 million sq ft. Inventory absorption was predicted to take 47 months, as against the healthy 8-12 month time frame.
Across markets, weighted average prices remained more or less stagnant with a mere 1 per cent appreciation on yearly and quarterly basis. Ahmedabad saw the highest rise in prices at 3 per cent annually while prices dropped by 4 per cent in Delhi-NCR.