New launches of residential property declined by 45% in the second quarter of FY19, says report
In the second quarter of the current financial year, a recent report suggests that there has been a decline of 45 per cent in the new project launches in the residential segment in the country.
A report by a real estate consulting firm PropTiger titled ‘Q2/H1 FY20 Indian residential market’ also stated that home sales dipped 25 per cent compared to the corresponding sector last year.
The report also stated that there was a decline in quarter-on-quarter comparisons, both in new project launches and sales by 32 per cent and 23 per cent respectively.
The data is raising the alarm for the government, which already is doing a lot towards finding a solution to the NBFC issue.
Another explanation which experts are giving for the decline in sales is due to the decision of home buyers to purchase the property to match with the festive season, i.e. with Diwali.
Most of the cities saw a decline in numbers of new property launches except Gurugram, which unexpectedly saw an increase in the number of launches.
Although experts believe that the launch numbers might continue to fall due to cash crunch, the higher purchase activity during the festive season may improve sales numbers.
While most of the cities have witnessed slight changes in the property prices, Hyderabad has seen a jump of 15 per cent in prices.
Nevertheless, the residential market of Gurugram and Chennai have witnessed a downward movement in pricing over the last one year to -4 and -1 per cent respectively.
On the other hand, most of the cities such as Mumbai, Pune etc. witnessed price appreciation by 2 to 4 per cent year-on-year.
Earlier it was reported that stalled residential projects in India were worth $63 billion, creating an alarming situation for the banks.