Liases Foras Property Rating & Research has reported that this is the best quarterly sales performance we now have seen in the last five years. Price correction has certainly helped buyers enhance their affordability .The ongoing Diwali quarter is slated to become even larger because of the improvement in sentiment and economic growth. Housing loan rates of great interest have eased to just about 6-year low and that is certainly helping drive the demand from the consumer.
In Delhi NCR, Noida has contributed well ahead of Gurgaon. The housing projects in Noida have recorded good sales after a little price correction by the developers. Not only the affordable segment with units priced as much as 50 lakhs showed a greater demand during the quarter but also the luxury segment with apartments priced over 2 crores witnessed a 38% annual development in demand.
The launch of new housing projects in Noida & Greater Noida has dipped drastically as the home buyers are looking for projects which are either complete or about to be completed soon. This shows developers of Noida housing projects are concentrating more about offloading existing inventory. Unsold stock across tier-I cities climbed 12% and was related to new launches with the maximum increase observed in Kolkata, followed by Ahmedabad and MMR. Because of the steady pace of sales, the month’s inventory dropped across most locations except for Chennai and Kolkata.
The present quarter is predicted to remain good as sales through the entire Diwali season have improved. If prices do not go up and interest rate come down further, going forward, it is only going to improve. Both realty developers and brokers expect the seventh pay commission recommendations that are being implemented by the central government to supply a stable and positive effect on the economy by means of increased spending for creating long-term assets.
“We expect a significant demand revival with improved sentiments in sight along with increased affordability for users. With positive factors such as falling rates of interest as well as the ongoing festival seasonThe residential sales growth momentum has spilled over to the ongoing festive quarter too and developers have already started reporting relatively better numbers. Godrej Properties recently announced it has sold over 6 lakh sq.ft. of villas in one single day of the launch of its 100-acre township project in Noida.
State Bank of India, the country’s largest nationalized bank, has reduced its mortgage loan rates to 9.1%, the lowest in six years as an element of its festive scheme. The move is coming bang in the middle of an active property season and will probably be accompanied by a number of other lenders resulting in lowering borrowers’ mortgage loan installment burden.
Because the gap between prices and affordability has reduced and home loan rates came down, prices have pretty much remained unchanged. Also, buyers are preferring ready-to-move-in properties .It has also been observed that about 30% to 40% sale of properties in Delhi NCR is recorded from the housing projects in Greater Noida west. And, most of these residential projects are either offering possession or are nearing completion. The mix of the top quality project with a lot of lifestyle amenities, a great location, and a strong brand helps the project get a robust response.