Even as the real estate market in the country faces uncertainties due to an overall slowdown in the economy, housing sales fell 17% in the top 7 cities of India in value terms during the Jul-Sep quarter, according to Anarock Consultants.
Of the three quarters of 2019, Q3 saw the worst overall sales performance.
The period saw sales of Rs 42,040 cr, which was a decline of 17% compared to the same three months of 2018. With this, the total sales for the first nine months in the top 7 cities of India has come to 1.54 lakh cr.
“A combination of factors such as the ‘shraadh’ period (considered inauspicious), the ban on subvention schemes and a prolonged monsoon resulted in below par sales,” Anarock said.
Geographically speaking, the biggest fall was seen in Bangalore, which saw sales in Q3 shrink by 35% to Rs 7,540 crore.
MMR (Mumbai) saw homes worth Rs 17,300 crore sold in Q3, a decline of 7%.
Pune saw the least decline in housing sales value in Q3 2019 – homes worth INR 4,775 crore were sold in Q3 2019 against INR 5,035 crore in Q3 2018.
Hyderabad saw a 31% decline during the period with sales worth Rs 2,350 crore.
NCR saw a 13% yearly decline in the overall housing sales value – from INR 7,775 crore in Q3 2018 to INR 6,745 crore in Q3 2019.
Chennai saw a decline of 10% and Kolkata 29%.
The value of homes sold in Chennai was Rs 1,620 crore in Chennai and Rs 1,710 crore in Kolkata.
Despite the poor performance of the third quarter, the overall number for the full year continues to remain firm due to the good performance seen in the first half of the year (Jan-June).
Taking the year so far, the top seven cities in India actually witnessed a 16% increase in the value of residential properties sold compared to the same period last year.
In terms of volumes (number), the increase in the first 9 months of this year was 13.5%, which suggests that average selling prices fell modestly when adjusted for inflation. This could also be because of the increasing share of smaller, affordable houses in the overall sales mix.
In terms of raw numbers, the first nine months of this year saw sales of 2.02 lakh units worth Rs 1.54 lakh cr, giving an average price of Rs 76.24 lakh per piece of property sold.
Last year, the same period had seen sales of 1.78 lakh units worth Rs 1.33 lakh cr, giving an average value of Rs 74.72 lakh.
Mumbai region continued to be the top market in terms of value, accounting for about a third of the total sales with Rs 62,970 crore. This was an increase of a whopping 33% over the same period of the previous year.
MMR was followed by Bangalore with Rs 28,160 cr worth of sales. However, this represented a fall of 7% over last year.
Pune, not far from Mumbai, too saw a 32% jump in the overall housing sales values during the year to Rs 17,530 crore.
As many as 31,380 homes were sold in Pune in 2019.
National Capital Region too saw an increase of 15% in sales to Rs 24,860 cr.
Hyderabad housing sales declined by 2% while in Chennai it rose by 13%. The actual number was Rs 9,400 crore in Hyderabad and Rs 5,580 crore in Chennai.
Kolkata was just ahead of Chennai at Rs 5,850 crore worth of sales.