Home sales, especially of new launches, improved during the period from January to March. The discounts offered by the builders have improved the sentiments of the buyers.
US financial major Merrill Lynch’s report stated that the sales of new launches improved. The real estate developers have offered various discounts to woo the buyers. According to the financial major the discounts do have an impact in the home sales.
New projects are launched at attractive prices. Besides they are offered with discounts. Attractive schemes by the developers do woo buyers and investors. New launches by renowned developers picked up sales during the first quarter of 2013.
Though the sale of new launches improved this year, Gurgaon saw a fall of sales. This slowdown is mainly because the builders have been focusing on completion of their ongoing projects. Besides they also focus on clearing the unsold inventories. Rising property prices also impacted the demand for new launches in Gurgaon.
Merrill Lynch said that there will be price correction in Mumbai in the upcoming years. Property prices in Mumbai have appreciated at 14% over the last decade.
To improve the affordability in the city, there should be a price correction. The prices should be corrected and overpowered within a couple of coming years. Only then it is possible to catch up with the home prices and the income levels.
Abhishek Gupta, Research analyst at Merrill Lynch said that most of the new launches are offered with discount rates. This discounted-rate has impacted the home sales.
According to the Merrill Lynch report, Bangalore saw highest number of residential sales. This is mainly because of the higher number of new launches. Many new projects are launched in view of Ugadi, the local New Year, which befalls in April.
Increase in the number of investors, salary-hike, etc. also affected the home sales in Bangalore. Job security too has attracted the end-users and buyers.