Tier I Cities Record Sales Of 42,297 Units In Sept Quarter

In what could be termed as green shoots of recovery during the COVID-19 pandemic, sales across Tier I cities have recovered by 60 percent in the second quarter of 2020. The maximum increase was observed in Kolkata which was 68 percent followed by Ahmedabad by 64 percent, MMR and Bengaluru by 60 percent each, says a report by Liases Foras. Tier I cities have recorded sales of 42,297 units in the Sept quarter (Q2 FY 20-21) which is a 60% increase from the June quarter when the sales were 26,403 units. On a year-on-year (YoY) basis, the overall sales across tier I cities is 37 percent lower than last year during the same period. Sales in NCR and Bengaluru witnessed maximum decline of 47 percent and 46 percent on a YoY basis followed by Ahmedabad (37 percent) and Kolkata (32 percent), says the report titled Residential Real Estate Market Report – Tier 1 cities Q2 2020-21. The growth is driven by the offers and payment flexibility doled out by developers. Along with these offers, lower interest rates, stamp duty waivers are drawing homebuyers. The new launches recovered by 68 percent in September 2020 at 18,591 units when compared to last quarter. The new launches are still 70 percent lower than those of last year’s during the same period. The consolidated tier 1 cities unsold stock decreased by 3 percent in Q2 FY 20-21. It decreased the maximum in NCR (5%) followed by Pune, Ahmedabad and Kolkata by 4 percent each. Unsold inventory across tier I cities decreased due to few new launches and sales being in the higher side than the new launches. As far as movement in prices across cities is concerned, the weighted average price across Tier I cities remained stable in the second quarter of the financial year 2020-2021. Prices remained stagnant in Chennai, Kolkata, NCR and Pune. Price in MMR reduced marginally by 1 percent and increased by 2 percent each in Ahmedabad, Hyderabad