Total apartments launched in 2016 and 2017 was 233,387 units
A report by JLL India has noted that sales for residential properties have remained strong and exceeded new supply by five percent during the last two years in the seven main cities.
Sales for residential properties have remained strong, quarter after quarter. While cumulative new launches across top seven cities of India in the last two years (2016 and 2017) was recorded at 233,387 units, sales of residential units in the same time was recorded at 244,830 units indicating that more apartment units were sold, it said.
The fresh residential property supply in the 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, it said.
In the last eight quarters, the sales velocity has seen a steady upward trend on account of a pent-up end-user demand that uplifted the market, as soon as a stable trend in the residential capital prices was observed, it said.
Overall unit sales outstripped the number of launched units by 5 percent in the period of consideration, except for the 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 offtake, which will reflect in good sales figures when the Jan-March 2018 quarter ends.
“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 a decade low, the situation provides residential buyers a most opportune moment to purchase properties as well as easily service their EMIs,” said Ramesh Nair, CEO and Country Head, JLL India said
The last quarter of 2017 saw a surge in new launches on account of the stabilisation 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, it said.