Housing NSE -0.91 % sales across top cities in the country is seeing some green shoots of recovery with both sales and new launches rising despite liquidity issues and low buyer sentiment with Hyderabad and Kolkata leading the revival.
According to JLLNSE 0.00 % data for the nine-month period ended September 30 sales in residential segment have risen 40% on year.
Business environment for real estate has seen rapid change with series of reforms in the form of demonetisation, implementation of Real Estate (Regulation & Development) Act, 2016, the Goods & Services Tax (GST), Benami Properties (Prevention) Act and the Insolvency & Bankruptcy Code.
“While the implementation of GST and RERA led to some initial challenges for developers, most of the issues have been addressed and the industry as a whole is aligned. Going by the data for sales and new launches in the January to September period, home buyers are no longer delaying or postponing decisions on buying homes,” said Ramesh Nair, country head, JLL India.
Hyderabad and Kolkata were the standout performers with growth rates of 277% and 230% respectively. The relatively small residential markets in the two cities also provided a low base effect for the jump in bookings. These were followed by Chennai (77%), NCR (53%), Pune (19%), and Bangalore (12%), the report said.
“There is definitely an increase in confidence in the market amidst positive signs of recovery. This, coupled with stable pricing, augurs well for the industry and demonstrates the return of buyers’ confidence in the market, which has in turn prompted developers to launch new project,” Nair said.
In terms of launches, Kolkata led the way with an astounding 325% on-year growth followed by Chennai (289%) and NCR (152%) rounding off the top three. While Bengaluru and Hyderabad recorded growth rates of 101% and 82% respectively, in Pune had launches was pegged at a niggardly 3% growth.