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Over 7 Lakh Homes Unsold in Top 8 Cities: Knight Frank

New Delhi: Over 7 lakh housing units remain unsold in eight major cities and it will take more than three years to exhaust the inventories, property consultant Knight Frank India said on Tuesday.

The national capital region (NCR) market had 1.9 lakh unsold homes as of June.

Residential market, which is facing a huge slowdown in demand for last 3-4 years, would "not see a recovery in the next six months", the consultant said in a statement.

Housing sales dropped by 19 per cent and new launches by 40 per cent during January-June 2015 in eight cities compared with the year-ago period.

These cities are Delhi-NCR, Mumbai, Bengaluru, Pune, Kolkata, Chennai, Hyderabad and Ahmedabad. "Current unsold inventory levels stand at over 7 lakh units; would take over 3 years to exhaust," said the consultant.

Knight Frank India CMD Shishir Baijal said: "Despite economic scenario strengthening, we are seeing no improvement in the residential market across the top eight cities. Going forward, we do not see any improvement until the end of 2015 in terms of sales."

Its chief economist & director, research Samantak Das said the Mumbai Metropolitan Region (MMR) has the maximum unsold inventories at 1.95 lakh units followed by Delhi-NCR 1.9 lakh homes.

He said the home launches have declined by 40 per cent to 95,400 units in the first half of 2015 compared with 1.6 lakh units in the same period last year.

Sales volume fell by 19 per cent to 1,10,300 units from 1,36,000 units during the period under review, Das added.

"We do not see recovery in housing market as demand is subdued and sales are slow. Sales are happening only where the price points are right and builder has good track record on project delivery," he said

"Lack of confidence of consumers in project completion is actually deterring them in taking a decision to buy homes," Das said, adding that price remain a concern in Mumbai market.

"There is total lack of confidence in the Delhi-NCR housing market," he observed.

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Realty Trends

Home prices near most-affordable levels in over 30 years: HDFC


Home prices may have been on an upward spiral for many years, but the cost of owning a house in India remains near the most affordable level in over three decades, shows data compiled by mortgage giant HDFC Ltd.

The average price of a home, purchased with a housing loan, rose to over Rs. 45 lakh in the 2012-13 fiscal year -- marking the fourth consecutive year of uptrend from about Rs. 25 lakh in the year 2008-09, HDFC has said in a presentation.

However, factors like an even greater surge in the personal income levels, tax incentives and lower interest rates, have resulted into houses becoming more affordable to purchase, it said.

 

 

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India Property Investment Gyan

Major schemes for affordable housing to be modified: Girija Vyas


NEW DELHI: Major schemes meant for providing affordable housing to urban poor will soon be modified to make them more people-friendly, the government said today and invited the private sector to contribute more actively in this area. 

Speaking to reporters here, Housing and Urban Poverty Alleviation (HUPA) ministerGirija Vyas today said her ministry is modifying all the major schemes including the Rajiv Awas Yojana (RAY), Rajiv Rinn Yojana and the, Affordable Housing in Partnership scheme and added enormous budgetary support has been earmarked during the current plan period. 

Secretary HUPA Arun Kumar Misra told reporters that a fund of Rs 35,000 crore had been allocated to the ministry for the implementation of three major schemes, including RAY, which was being run in as a pilot project earlier under 12th five- year plan. 

He said the ministry would require approval from the cabinet for the implementation of these schemes and efforts would be made that through these funds 2 million affordable houses are encouraged. 

He said that in addition to the central government funds, banks and credit institutions would be providing funds for construction of affordable houses. 

Vyas said that with urbanisation, the number of urban homeless and area under slums had grown. 

Vyas said there was a need for private developers to develop economic models to foster affordable housing for economically weaker sections and lower income group households in urban areas as government efforts in this direction needed to be supplemented. 

Vyas also said a technical group, set up by her ministry, had shown that out of 18.78 million housing shortage in the country, 96 percent shortage is in EWS and LIG category and for this huge investments and private sector participation were required. 

Misra said the group set up by the ministry has suggested incentives for the affordable housing sector included concessions to development-related charges and service taxexemptions. 

It also sought direct tax rebates for affordable housing projects and inclusion of the sector in the 'infrastructure facility' he said and added the task force had felt that governments need to still provide direct capital grant support to affordable housing projects. 

Misra said that in the symposium held today where states, experts and private sector representatives were present, there was unanimity on many of the suggestions.

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Green Property- Eco Homes

Reclaim your city space: Projects in Delhi, Mumbai and Kolkata aim to transform lives

 
Three projects in three cities aim to transform the lives of people who live close by. The one in Mumbai hopes to transform a congested area into a green precinct; the one in Delhi converted an open drain into a walkway, while Kolkata hopes to bring the crowds back...