Home sales growth tepid at 6% in 2018

Housing sales in eight major cities in India rose six per cent in 2018 as developers reduced prices and offered indirect freebies to lure buyers, property consultant Knight Frank India said in its report on Tuesday.

Sale of residential units increased in six cities such as Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad and Ahmedabad but declined in two cities of Kolkata and Pune.

Sales volumes in 2018 were estimated to be 2,42,328 units as against 2,28,072 units in the previous year, Knight Frank India report said.

It notes that 2018 marks the first time in this decade when annual supply numbers have grown year-on-year. The total new units launched in the year 2018 is estimated to be 182,207 which was higher by 75 per cent as compared to the total units launched in 2017. Supply of new launches spike by 119 per cent, says the 10th edition of Knight Frank’s half-yearly report - India Real Estate. Knight Frank has reported lowest rise in housing sales during 2018 at 6 per cent.

JLL India said housing sales rose 47 per cent in seven cities, ANAROCK data suggested 16 per cent rise in seven cities, and PropTiger showed 25 per cent rise in sales in nine big cities.

The difference in the figures is on account of variation in locations in the respective reports.

“An improving regulatory environment, reducing prices, indirect discounts and an increasing infusion of residential products that are more in tune with the homebuyers' preferences have culminated in a six per cent year-on-year (YoY) growth in sales during 2018,” Knight Frank India said.