Home sales are down by 8 per cent

As per the latest reports of firm Liases Foras, the sales of Home are down by 8 per cent in top six cities of the country over the year-ago quarter, but India rose 2 per cent sequentially in the last quarter.

After the recent reports it’s clear that year-on year basis the sales of home are fell by 37 per cent in the NCR region while the sales of home was up by 8 per cent in the Mumbai. Whereas; Hyderabad was emerged as the best performing real estate market with more than 46 per cent year-on–year jump in the sales of home and it was followed by the Pune where sales was up by 22 per cent, in Bengaluru the home sales was increased by more than 5 per cent and in Chennai the home sales was up by 40 per cent.

In the report of quarter-on-quarter basis it is recorded that the sales in Chennai and Mumbai were up by 24 per cent and 25 per cent respectively and the sales was up by 31 per cent in Bengaluru whereas; the sales were down by 27 per cent in NCR region. The price of properties in Hyderabad, the Mumbai Metropolitan Area, NCR, Pune, Bengaluru and Chennai remained stable in the last two years on the year-on-year and quarter-on-quarter basis.

After analyzing the latest property trends it’s clear that unsold housing inventory level is so much up in the top six cities and it’s of about 853.09 million sq ft or about 650,000 apartments between the period of January to March quarter however; in the previous quarter it was about 832.09 million sq ft. Among all the real estate market, NCR had the highest unsold inventory with the 321.68 million sq ft area and it is expected it will take more than 71 months to sell these unsold inventories. However; Mumbai Metropolitan Region has the 192.27 million sq. ft as the inventory which will take about 46 months to be sold these spaces. And Bengaluru is among the best performing real estate market among the larger ones which have more than 152.43 million sq ft area and it is expected that it will take more than 27 months to sell them.

As per the reports of Liases Foras, the new supply in the current quarter rose about 21 per cent over the previous quarter which was about 36 per cent because the new supply came in the range of Rs 50 lakh to Rs 1 crore followed by 29 per cent in the range Rs 25 lakh to Rs 50 lakh. Reports stated that the units of two bedrooms constituted 36 per cent in the new supply which was followed by three bedroom units at 35 per cent. MMR and Bengaluru have 28 per cent and 31 per cent of the new supply respectively.

Top three cities to invest

In past three years it has been noticed that property prices increased sharply in most of the major cities in country and Bengaluru, Chennai and Ahmedabad are among top three cities from where one can draw the maximum ROI. While analyzing the property price figures for the duration of Jan to Mar 2015 quarter it is clear that the areas such as; Nungambakkam in Chennai, Silk Board in Bengaluru and Ghatlodiain Ahmedabad witnessed the highest price appreciation, which is the main reason of joy for those who have invested in above mentioned areas. However the analysis is following;

1. Area: Nungambakkam

City: Chennai

Due to latest infrastructure development work and other large projects in favor of Nungambakkam, its only re-development of old projects which led the property price to rise by the value of 8.18 per cent in Nugambakkam in last three months. Retail outlets, Government quarters, hotels and restaurants, are the main attraction of the area however the Nungambakkam is oldest habituated locality in Chennai. Most of the real estate builders have launched their new projects in the region however for some real estate projects construction work is underway, as per the statement of Velmurugan V, a real estate agent from a broker firm.

As Nungambakkam is close to city centre so it is easily connected with rest of the city however; Nungambakkam is mostly housed by the elites of the Chennai, NRIs and HNIs. Here property values in the range of Rs 14, 000 to 18, 600 per sq ft and it makes the Nungambakkam one of the premium areas of city.

2. Area: Silk Board

City : Bengaluru

In past three months the property prices for Silk Board have increased by 10.45 per cent. The main question is that what is working in the favor of this locality? So perfect answer is it’s all about strategic location and connectivity with Outer Ring Road as well as IT areas like; Electronic City, ITPL, and Marathahalli.

Due to being the premium and most busy region in the city Silk Board is famous for arguably being worst traffic spot, but in near future the place is going to witness the several infrastructure up gradation. Everyday millions of people pass through the CBS (Central Silk Board) junction including both public and private transport which is the main reason for long traffic jams.

However the construction work for Elevated Expressway is underway and it is expected that this Expressway will reduce the travel time between Electronic City and Silk Board Junction and it will also help the nearby areas. Current property rates in the area are around Rs 2, 600 to 3, 500 per sq ft.

3. Area: Ghatlodia 

City: Ahmedabad

Ahmedabad is not the metro city, but still the localities of Ahmedabad are able to provide good return on property investment as here few localities are giving strong competition to the premium areas of metro cities and for that the best example is Ghatlodia, as this locality has witnessed more than 8.11 per cent price appreciation in last three months duration.

Here most of the potential customers are the professionals, which are moving in city due to its relaxed lifestyle and affordability, as per the statement of Pragnesh Korat, who is real estate expert in Aakar Estate. The main advantage of Ghatlodia area is that this area is situated near by SG Highway, which directly connects the SP Ring Road through Science City Road. Ghatlodia area shares neighborhoods with some of the most develop areas as well as expensive localities such as; Naranpura and Memnagar. Current property rates in Ghatlodia area are approx. Rs 3, 300 to 4, 100 per sq ft.