As per reports, the real estate sector is steadily witnessing a revival across the country. Sales of residential units went up by a handsome 12% throughout the top 7 Indian cities for the period between January and March 2018 as compared to the earlier quarter. There was higher end-user demand due to improved sentiments post RERA as per experts. Sales of housing units touched 49, 200 units approximately in this period.
This was higher than the 43, 800 units that were sold in the period between October and December 2017 throughout the top 7 cities, namely Mumbai Metropolitan Region or MMR, Hyderabad, Chennai, Bangalore, Pune, Delhi-NCR and Kolkata. Supply of new residential units also went up by 27% to stand at approximately 33, 300 units for the first quarter of 2018 as compared to 26, 300 units that were added in the last quarter of 2017. The lowering of unsold inventory by 2% to 7.11 lakh units from 7.27 lakh units was also heartening for the sector.
According to experts, the multiple reforms in the sector including RERA and other policies have definitely changed the ways of doing business in the sector and emboldened customers. Market sentiment is positive and things are picking up steadily. The market is now geared more towards end-users and there is a steady balance between supply and demand of housing units. RERA was implemented from May 2017 and the current trends indicate that serious property buyers have returned to the market due to more transparency and accountability of developers.
80% of sales volumes were contributed by Pune, NCR, Bangalore and MMR cumulatively as per reports. Sales of residential units went up to 3, 400 units for the first quarter of 2018 in Kolkata which represents a healthy increase of 42% as compared to 2, 400 units sold previously in the last quarter of 2017. Sales of housing units increased as compared to 15% over the previous quarter in Pune and Bangalore and cumulative volumes were approximately 6, 800 units and 11, 500 units respectively.
Sales of residential units also increased by around 12% in the MMR to stand at 12, 300 units as compared to 11, 000 units sold in the last quarter of last year. Delhi-NCR saw an increase in real estate sales volumes by 11% to stand at 9, 100 units in comparison to 8, 200 units sold in the fourth quarter of 2017. Sales volumes increased to 3, 800 units in Hyderabad which represented growth of 3%.
The only de-growth in sales volumes was witnessed in Chennai where sales volumes went down by 12% to stand at around 2, 300 units for Q1 2018 as compared to 2, 600 units sold in the last quarter of 2017. Prices of residential property were largely stable throughout the first quarter of this year according to reports.