Ahmedabad, Hyderabad Are The Shining Stars Of Q1: DataLabs Report  

While the uptrend in home sales and new launch seen in the first quarter (Q1) of the financial year 2016-17 (FY17) indicates a new beginning for the real estate sector in India, some cities have managed to impress the data diggers even more with their better performance rate. According to the latest PropTiger DataLabs report for the April-June quarter of FY17, Ahmedabad and Hyderabad have performed exceptionally well on most parameters.

The report analyses residential markets in the nine major cities of Ahmedabad, Bengaluru, Chennai, Gurgaon (including Bhiwadi, Dharuheda, and Sohna) , Hyderabad, Kolkata, Mumbai (including Navi Mumbai and Thane) , Noida (including Greater Noida and Yamuna Expressway) , and Pune.

Status check on Ahmedabad

Sales: While the overall residential real estate sales across the nine major cities in Q1 went up by eight per cent on a quarter-to-quarter (QoQ) basis, Ahmedabad recorded a Q-o-Q growth of 61 per cent. This was the highest home sales growth rate recorded by a city in Q1.

Price: According to the DataLabs report, from an average price of Rs 2,784 per sq ft in the January-March quarter of FY16, property prices in the city went up to Rs 2,966 per sq ft in Q1, registering a Q-o-Q increase of seven per cent. Overall, prices across the country rose one per cent during the period.

Launches: Ahmedabad was also on the top of the heap in terms of new unit launches. During Q1, it registered a massive 726 per cent increase in launches over the fourth quarter of the previous financial year.

Inventory overhang: While inventory overhand eased in the first quarter, owing to a pickup in sales and a check on new launches, data show that real estate in Ahmedabad is maintaining a healthy balance in terms the overhang and the age of the inventory.  

Outlook: Going by the latest trends, it could be predicted that the affordable housing segment in Ahmedabad will likely see a major upswing in the coming months, as most of the launches in the city cater to the middle-class buyers.

Happening in Hyderabad

Price: With eight per cent Q-o-Q growth, Hyderabad recorded the highest price increase among the nine cities, according to the report -- from an average price of Rs 3,589 per sq ft in the fourth quarter of FY16 to Rs 3,890 per sq ft in Q1.

Sales: A Q-o-Q comparison shows that Hyderabad reported an increase of three per cent in residential real estate sales.

Launches: New unit launches in Hyderabad saw a Q-o-Q increase of five per cent, while overall they went up 14 per cent across the country. This was even as five of the nine cities covered in the report saw an annual decline in new unit launches.

Luxury housing: Data indicate that Hyderabad is emerging as a new hub for luxury housing, with a 69 per cent share of total demand in this segment. This trend could be attributed to the affordability factor that comes along with luxury. When compared to prominent luxury markets like Gurgaon, property prices in Hyderabad are lower in general.

Inventory overhang: In Hyderabad, 34 per cent of the total inventory is more than three years old. After Noida (51 per cent) and Chennai (35 per cent) , Hyderabad and Mumbai have the most aged inventory. On the other hand, 40 per cent of this inventory is in the luxury segment. This further indicates that luxury will be affordable in the 'City of Nizams' in the near future.

Also read: Home Sales Up 8% In Q1, Launches Rise 14%: DataLabs Report