Residential Property in Top Eight Cities, Including Delhi, Mumbai and Kolkata Recorded Growth in Three Years

According to a latest real estate report published by Knight Frank India, top eight cities in India, in the first eight months of 2016, have seen a market where the sales has increased and prices remained flat. The cities include Mumbai, NCR, Pune, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmadabad.

The report published a statistics of property sales and those remained unsold to elaborate the positive side of the picture. Between January and June, in 2016, over 6.6 lakh residential units remained unsold. The number has declined up to 7% year-on-year. In the same period, in 2015, these eight Indian cities recorded 7.10 lakh unsold residential units. The report also stated that the four out of the eight cities, including Mumbai, Pune, Hyderabad and Chennai ‘are leading in the reduction of inventory.’

While properties in Delhi has took time to sold around five years, unsold units in Mumbai declined to 1.70 lakh units from nearly 1.95 lakh units last year, and will take about more 2.5 years to sell all.

On the other hand, the cities like Bengaluru and Pune has recorded them as the best performers when it came to sell properties to corresponding customers. Pune is not as expensive as Mumbai and is friendlier to live in. Bangalore is a hub to people from across the country shifting to the city for their job and needs a place to reside. Therefore, the demand is high and is affecting the property market to strengthen continuously.

Meanwhile, the property market has dropped to 9 percent in last three years’ time in the eight cities. The fall was led by Delhi NCR, which saw the sharpest of all- of 41 percent in new residential project launches. Chennai and Pune followed NCR and have recorded 36 percent and 32 percent of decline respectively.

Mumbai and Bengaluru, on the other hand, led a positive growth in sales volume, up to 23 percent year-to-year and 18% year-to-year respectively. ‘However, NCR, Chennai and Kolkata proved a drag yet again, as they continue to reel under pressure in terms of sales volume,’ the report said.