The Indian realty sector has witnessed sales of 53,000 units in the third quarter of the current fiscal compared with around 49,000 units in the second quarter.
This shows that the real estate sector seems to have bounced back that sales have risen in this quarter after ten quarters of decline.
A report by real estate advisory Prop Tigers said while total launches increased against the previous quarter, new launch sales within these grew much faster at 23 per cent as compared with three per cent of old projects.
Affordable housing segment (below Rs 5 million) continued to be the hot pick in the sector with more than half of the sales of apartments in this segment and this has been so even in the previous quarters.
“The share, however, has declined over the past 10 quarters, from a high of 58 per cent in the first quarter of FY14 to 52 per cent in Q3 FY16,” adds the report.
The report, which studied market trends based on launches, absorption, inventory and prices across India’s nine major cities, said unsold inventory finally seems to be declining, at least for new projects.
Sales of new launches are rising by 23 per cent when compared with the sales in existing projects, which grew by three per cent. There is a decline in inventory overhang in Q3FY16 by two months to reach 35 months driven by rise in sales.
Unsold inventory in ready-to-move-in apartments category throughout cities stood at merely 5.5 per cent, implying larger confidence towards ready-to-move-in apartments on account of ‘nil’ construction risk.
Pune is one of the key cities that has the best possible mix of low inventory overhang and low aging, the report added.