Home sales, notably for freshly introduced projects, demonstrated a positive trend during the period spanning January to March. The discounts extended by construction firms have fostered enhanced confidence among prospective purchasers, contributing to a more upbeat market atmosphere.
Bangalore and Mumbai witness improved home sales.
A report from US financial giant Merrill Lynch highlighted an upswing in sales of new project launches. Real estate developers have implemented various discount strategies in an effort to attract buyers. The financial institution suggests that such price reductions are indeed influencing home sales positively. Experts say that offering new projects at attractive prices and combining them with discounts is a very promising approach for the customer.
New projects are being introduced to the market with appealing prices. Moreover, these projects often come with discount offers. The implementation of attractive schemes by developers serves to captivate both buyers and investors. New launches by well-known developers experienced a surge in sales during the initial quarter of 2013. This created more confidence in the market, for people to buy real estate.
While new launch sales exhibited growth this year, sales in Gurgaon experienced a downturn. This deceleration is primarily attributed to builders concentrating on the completion of their existing undertaking and focusing on reducing their unsold inventory. The rising property prices also had a dampening effect on the demand for new launches in Gurgaon which is an area of concern for developers.
Merrill Lynch anticipates a price correction in Mumbai in the coming years. The company's report reveals that property prices in Mumbai have risen at a rate of 14% over the past decade causing the company to create reports on the area.
Reports say that home sales have improved in Mumbai and Bangalore.
Experts belive that to improve affordability in Mumbai, a price adjustment is vital. Prices must be adjusted and addressed swiftly to align housing costs with income levels in the coming years, they suggest to the governing bodies.
Abhishek Gupta, a Research analyst at Merrill Lynch, stated, "Most of the new launches are offered with discount rates. This discounted-rate has impacted the home sales."
The Merrill Lynch report indicates that Bangalore recorded the highest volume of residential sales, mainly due to the increased number of new project launches. This increase lines up with Ugadi, the local New Year, which occurs in April.
Factors such as an increase in the number of investors and salary increases have positively impacted home sales in Bangalore. Job security has also played a role in attracting end-users and buyers which shows the economic improvement of the area.