There are no signs of improvement for home sales. The sluggishness has affected home sales across the country.
Various freebies and discounts are offered by the developers. Though these were expected to improve the sentiments of home buyers, weak home sales prove that these offers have no impact on the sluggish realty market.
Majority of the cities witnessed fall in home sales. Hyderabad, Bangalore and Pune are on the top lists according to the report by Liases Foras.
The real estate market research agency states that some of the cities saw improved sales in the first quarter of 2013. Mumbai, Chennai and Delhi-NCR reported slightly improved sales.
Despite the weak home sales, prices soared in many of the cities. Bangalore saw a price hike by 6%.
Prices in Mumbai rose by 3%. While the sales in the city rose only by 1%. 10.45 million square feet were sold in the first quarter of 2013, as against the 10.3 million square feet of the previous quarter, reports Liases Foras.
Delhi-NCR and Chennai saw improving sales. When sales in Chennai rose by 36%, the rate of growth in the Delhi-NCR was 24%.
Liases Foras MD Pankaj Kapoor said that price escalation adversely affected the sales in Bangalore and Pune.
Mr. Kapoor added that new launches also were few in many of the cities. Mumbai saw maximum number of new launches. Other cities like Pune, Bangalore, Chennai, NCR, etc. received fewer launches.
He said that most of the new launches are offered at lower prices than the existing rates. The debt-driven developers hope to sell off their unsold projects, rather than launching new ones.