New Delhi: The liquidity crisis in the NBFCs has resulted in an 8 per cent drop in residential sales in the third quarter, according to a report by property brokerage firm PropTiger.
As per the report, a total of 73,691 units were sold in third quarter of FY’19 in the top 9 cities as compared to 79,894 units sold in second quarter of FY’19.
However, sales across nine Indian cities rose 30 percent year-on-year during October-December of 2018-19, with Mumbai and Pune leading the growth pack.
“On a YoY basis, sales improved in all the cities other than Gurugram, which witnessed a slowdown due to non-approval of affordable housing projects. Cities in Maharashtra, namely, Mumbai and Pune led the growth pack showing more than 50 per cent improvement in sales year on year," said the report.
“The growth momentum typically seen during festival seasons was not seen during the last season due to the liquidity crunch caused by the snowballing of the IL&FS issue, which slowed down home loan disbursals and new sanctions by large home finance companies. However, if we compare the numbers with the same quarter of FY’18, sales are 30 per cent higher which is good news for the industry," said Ankur Dhawan, chief investment officer, PropTiger.
Gurugram witnessed a contraction of 26 per cent in sales in the third quarter on year on year basis. Hyderabad witnessed a growth of 36 per cent, Chennai by 25 per cent, Kolkata by 15 per cent, and Bengaluru by 3 per cent in sales in the third quarter.
The report said launches at the national level improved by a mere 3 per cent year on year, primarily due to a 48 per cent drop in new launches in Mumbai. Cities where launches improved significantly include Bengaluru, Gurugram, Chennai and Pune.
The reduced number of new launches and improved sales brought down unsold inventory by 10 per cent to 7,99,081 units. Inventory overhang has decreased to 31 months as compared to 34 months from last quarter. The report said Ahmedabad has the highest inventory overhang of 45 months followed by Kolkata at 41 months.
“Hyderabad witnessed the lowest inventory overhang of 20 months followed by Chennai and Bengaluru at 22 and 24 months respectively,” added the report....