Increase in NCR Home Sales
Property research firm PropEquity has reported that home sales in the National Capital Region (NCR) have seen a significant jump of 46%. This report is based on the tracking of over 45,000 housing projects by 8,200 builders across 40 cities.
Revival of Home Sales in NCR
According to the report, NCR witnessed a revival in home sales in January. Nearly 9,000 housing units were sold in the region during this period.
Sales Figures Comparison
- In January 2012, 6,032 home sales were recorded.
- In January this year, 8,812 housing units were sold.
This improvement indicates a revival in the NCR region.
Factors Contributing to Increased Demand
The demand for housing has increased due to the clarity in land acquisition issues in Greater Noida. Areas like Faridabad, Greater Noida, Noida Extension, and Yamuna Expressway saw a substantial rise in housing unit demand.
Performance in Other Regions
In contrast, home sales dropped by 14% in Mumbai and by 4% in Gurgaon. Samir Jasuja, Founder and CEO of PropEquity, commented that Gurgaon is no longer the top performer.
Home Sales Along Yamuna Expressway and Noida Extension
3,998 housing units were sold in January 2013 along Yamuna Expressway and Noida Extension. The resolution of land acquisition issues bolstered buyer sentiment.
Decline in New Launches
There has been a noticeable fall in the number of new launches in NCR. New launches decreased by 35%:
- 8,041 housing units were launched last January.
- Only 5,208 units were launched this year.
Mr. Jasuja stated that developers in NCR have reduced new launches to enhance liquidity and address unsold inventory concerns.
Lower Rates and Improved Sentiments
To tackle last year's lower home sales, developers launched projects at relatively lower rates, which enhanced buyer sentiments. Another crucial aspect boosting home sales is the revised repo rate by the RBI, which made home loans more affordable. However, Mr. Jasuja added that the repo rate should be reduced further to boost home sales.