Housing sale down by 4% in 8 cities, Delhi NCR worst performing market


A new report said on Thursday painted a bleak picture of property market across India.

According to report by consultant Knight Frank, housing sales fell by 4 percent to 2,63,720 units last year, lowest since 2010, in the eight major cities of the country on account of demand slowdown in the real estate market despite interest rate cut by the RBI.

Quoting the data, PTI reported that Delhi’s National Capital Region (NCR) continued to be the worst performing market in India with sales and launches at six year low.

At 2,44,944 units, launches of new homes fell by 21 per cent in 2015 in the primary market of eight major cities – NCR, Mumbai, Chennai, Kolkata, Bengaluru, Pune, Hyderabad and Ahmedabad.

Although the unsold inventories experienced some decline, it was quite marginal. It came down to 6.91 lakh units from nearly 7.15 lakh units in 2014. The report predicted that it would take more than two years for developers to exhaust this unsold stock.

Knight Frank India CMD Shishir Baijal said, “2015 for Indian real estate had both the good and bad news. While the office market grew from strength to strength, residential did not perform as expected.”

Residential segment continued to face slowdown with launches at a five-year low, despite the festive season.

“Sales in 2015 were lower than 2014 levels. Despite the 125 bps rate cut by RBI, demand did not see an uptake. Our outlook for 2016 remains muted. To further revive the demand, it is important to transmit the benefits of the rate cuts to consumers,” Baijal said.

In the Delhi-NCR market, housing sales fell marginally to 48,503 units in 2015 from 48,630 units in the previous year.

However, launches of new homes fell by 20 per cent to 63,458 units in NCR. The unsold inventory in NCR stands at 2.06 lakh units at the end of 2015.