Residential Property sales slowdown in NCR and Mumbai
There was a marginal decline in property prices across certain pockets in the National Capital Region (NCR) and Mumbai over the past 6-12 months; however it has failed to lure investors. Property sales in the quarter ended 30 June remained sluggish and the real estate sector is hoping that after the announcement of the union budget, it will pick up momentum.
There has been a record weak revenue and margins have fallen drastically in the NCR which is the largest property market. NCR was affected the most due to the successive quarters of low sales followed by the financial capital Mumbai.
DLF Ltd, India’s most valuable property developerhas managed to reduce its debt burden in the past year by selling off some of its assets, however has not seen a positive trend in its profit and loss statement. Home sales have been weak and NCR and Mumbai are waiting for the positive market sentiment to sink in.
However the scene is very different in the IT capital Bangalore. The developers such as Prestige Estates Projects Ltd and Sobha Developers Ltd continued to launch new projects and reported robust home sales figures. A July report by MotilalOswal Securities Ltd stated that high pent-up demand is evident from the rise in enquiries;however the actual conversions in terms of sales are yet to happen.
Source- Mint
