Sale of residential properties across India’s top eight cities increased 9% in April-June 2016, compared with the year-ago period, according to real estate research company Liases Foras. This makes it the third straight quarter of improvement in home sales in a real estate market coping with a prolonged downturn.
The growth in home sales was led by Ahmedabad, Hyderabad and Kolkata, where sales increased up to 20%. The Delhi-National Capital Region, including Noida and Gurgaon, witnessed a 12% increase, while sales in Mumbai remained almost stagnant with a mere 2% increase. The improvement in sales of residential properties was supported by a 35% decline in launch of new projects compared with the year-ago quarter.
However, the real estate market is not all rosy across the country. In cities such as Pune, Chennai and Bengaluru, home sales declined of 8%, 4% and 3%, respectively.
Sales of residential properties priced up to Rs 25 lakh in the top eight cities dropped 25% on a quarter-on-quarter basis owing to limited supply of quality homes. On a year-on-year basis, the sales figures for the sub-Rs 25 lakh properties remained stagnant.