A recent report by JLL India, an international real estate consultancy firm, pointed out that sales for residential properties have remained strong, quarter after quarter. Whilst cumulative new launches across top seven cities of India in the last 2 years (2016 & 17) was recorded at 2,33,387 units, sales of residential units in the same time was recorded at 2,44,830 units indicating that more apartment units were sold.
In the last 8 quarters, the sales velocity has seen a steady upward trend on account of pent-up end user demand that uplifted the market, as soon as a stable trend in the residential capital prices was observed.
Overall unit sales outstripped the number of launched units by 5% in the period of consideration, except second half of 2017 when a large number of new units were launched. These projects launched in the second half of 2017 are witnessing good off take, which will reflect in good sales figures when the Jan- March 18 quarter ends. The fresh supply in residential in latter part of 2017 was largely on account of the lag effects of the RERA implementation, which was adopted by most states during the same period.
The market dynamics of demand and supply periodically outstripping one another, has led to a continued stability in the capital values. Ramesh Nair, CEO and Country head, JLL India, said, said “This is a good time for end users, investors and fence sitters to consider their entry into the residential market, given that prices have been stable for a sustained period.
With lending rates from banks having significantly reduced since 2015 and at decade low, the situation provides residential buyers a most opportune moment to purchase properties as well as easily service their EMIs.”
The last quarter of 2017 saw a surge in new launches on account of the stabilizing of RERA mechanism across the country. The scale of new launches is also an indication of the confidence that the market has for the future potential demand. It also indicates the strengthening of the transparency, governance and compliance standards aligned to by the developers. Certainly, a good and controlled ecosystem to operate in, both from a developer and buyer perspective.