The outlook for home sales remains bleak, with no indications of recovery anywhere in sight. This stagnation has substantially influenced property transactions throughout the nation.
In a last-ditch effort to stimulate interest, developers are offering numerous incentives such as freebies and discounts. Although these strategies were anticipated to positively sway potential home buyers, the ongoing dismal sales performance indicates these promotional efforts have little to no significant influence on an already lethargic real estate market.
Sales figures reveal that a majority of cities across India are grappling with declining property transactions. Prominent cities such as Hyderabad, Bangalore, and Pune lead in terms of falling sales, as highlighted in a recent report by Liases Foras.
Despite earlier indications of recovering sales in specific urban areas during the first quarter of 2013, cities like Mumbai, Chennai, and Delhi-NCR recorded minor improvements.
In particular, Hyderabad experienced a staggering 46% decrease in home sales, placing it as the most heavily impacted city. Following closely was Bangalore, which experienced a 16% decline, while Pune encountered a more modest decrease of 7%.
Interestingly, while sales figures falter, property prices in several cities surged. Bangalore, for instance, experienced a price increase of 6%.
In Mumbai, home prices climbed 3%, even though the increase in sales was marginal, only rising by 1%. According to Liases Foras, approximately 10.45 million square feet of property was sold during the first quarter of 2013, which is a slight uptick from the previous quarter's 10.3 million square feet.
Conversely, Delhi-NCR and Chennai exhibited a positive trend in sales, with Chennai achieving a notable rise of 36% and Delhi-NCR not far behind at 24%.
Pankaj Kapoor, the Managing Director of Liases Foras, pointed out that the increasing prices in Bangalore and Pune have adversely affected their sales.
He further remarked that new property launches are declining in many regions, with Mumbai boasting the highest volume of recent launches. In other markets, including Pune, Bangalore, Chennai, and Delhi-NCR, developers have concentrated more on existing projects rather than introducing new ones.
According to Kapoor, many of the new projects coming to market are being offered at reduced prices compared to the already established rates, as financially strained developers aim to clear their unsold inventory rather than initiate fresh developments.